Produced by: Prashun Talukdar
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Domestic benchmarks continued to fall for the second straight session on October 19 (Thursday). The 30-share BSE Sensex pack slipped 248 points or 0.38% to close at 65,629, while the broader NSE Nifty index moved 46 points or 0.24% down to settle at 19,625. India VIX, fear index, fell 1% to 10.86-level.
For October 20 (Friday), share market analysts from a few brokerages have assigned 'Buy/Accumulate' calls on Bajaj Auto, Coforge, Polycab India and Can Fin Homes. Check share price targets, analysis, investment rationale and other crucial details about these fundamental bets.
LTP: Rs 5,483.90
Analysts at Religare Broking have given a 'Buy' call on Bajaj Auto shares with a target price of Rs 5,944. The stock has gained 53.33% in 2023 so far.
"Bajaj Auto posted strong overall performance as its Q2 FY24 revenue grew by 5.6% YoY/4.6% QoQ to Rs 10,777 crore. The growth was mainly driven by domestic business of motorcycles and 3-wheelers segments. We remain bullish on growth prospects of the company and estimate its revenue/EBITDA/PAT to grow at 19.3%/23.6%/22.2% CAGR over FY23-25E," Religare stated.
LTP: Rs 5,105.80
Nuvama Institutional Equities has selected Coforge in its stock recommendations. The analysts have given a 'Buy' call on the counter with a one-year target price of Rs 6,600 per share. The stock has risen 28.85% on a year-to-date (YTD) basis.
"Coforge's Q2FY24 numbers were solid - revenue was up 2.3% CC QoQ in-line with our/street's estimate of 2.5%. EBIT margin was affected by one-time ESOP cost (130 bps) – adjusted EBIT margins were 13.2% (+160bp QoQ) – in line with estimates. Management maintained its FY24 growth guidance, which, despite the tall ask, they are confident of achieving. We tweak FY24E/25E EPS by - 10.0%/ -0.3% on slightly lower margins (exceptional item in FY24)," Nuvama said.
LTP: Rs 5,294.15
Analysts at Prabhudas Lilladher (PL) has picked Polycab India in their long-term bets. The brokerage has given a 'Accumulate' rating on the counter with a target price of Rs 5,943. The multibagger scrip has zoomed 105.15% in 2023 so far.
The company expects to achieve Rs 20,000 crore revenues sooner than targeted by FY26E under Project LEAP, PL said. "We expect revenue/EBITDA/PAT CAGR of 19.8%/21.7%/22.8% over FY23-26E led by strong domestic demand environment supported by government measures and revival in private capex," the brokerage stated.
LTP | Rs 765.10
Prabhudas Lilladher also suggested Can Fin Homes for investors with a long-term view. The brokerage has given a 'Buy' rating for a target of Rs 900. The multibagger scrip has surged 40.13% in 2023 so far.
"With most of the process refinement being over, company sounded confident of achieving Rs 10,000 crore disbursals for FY24E (Rs 4,000 crore in H1 FY24); we are conservative and factoring disbursals of Rs 5,300 crore in H2 FY24. GNPA spiked to 0.76% (0.63% in Q2'24) of which 0.19% was due to OTR. Slippage from OTR has been higher at 14% (guidance 10%) and 30% of OTR will be tested for GNPA in Q3’24. Hence additional management overlay of Rs 17.3 crore was created leading to buffer of Rs 34.3 crore (50% of GNPA from OTR)," PL mentioned.
"Over the near term, Nifty may experience volatility, with support placed at 19,700. A drop below 19,700 may take the index toward the range of 19,600-19,550. However, the 'buy on dips' strategy is expected to remain the preferred approach as long as it sustains above 19,550," said Rupak De, Senior Technical analyst at LKP Securities.
"In the near term, weakness may persist in the banking sector as Nifty Bank has stayed below the critical short-term moving average. Over the short term, the index might maintain a negative to sideways trend as long as it remains below 44,700. Support is situated at 44,000-43,800," said Rupak De, Senior Technical analyst at LKP Securities.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.