Stock recommendations by share market analysts for September 26, 2023: Ramco Cements, KEI Industries, IndiGo & KNR Constructions

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Domestic benchmark indices settled almost flat on Monday. The 30-share BSE Sensex pack edged 15 points or 0.02% higher to close at 66,024, while the broader NSE Nifty marginally inched 0.30 point up to end at 19,675. India VIX rose 2.25% to 10.90-level

Sensex, Nifty end flat

For Tuesday (September 26), share market analysts at different brokerages have assigned 'Buy' calls on The Ramco Cements, KEI Industries, IndiGo and KNR Constructions. Check share price targets, investment rationale, technical analysis and more crucial details

Stocks with potential
'Buy' calls

LTP: Rs 904.05
Geojit has a 'Buy' call on The Ramco Cements shares with a target price of Rs 1,034 apiece. So far this year, the mid-cap stock has gained 28.14%

Ramco Cements share
price target

"The company plans to expand the capacity of dry mix products with two plants commissioned in FY23 and another two (in AP & Odisha) by FY24. This product has around 25-30% margin and will contribute nearly Rs 80 crore revenue per plant. The company has guided for strong volume growth of 20% in FY24. We expect revenue to grow at a 12% CAGR over FY23-25E. Its capacity expansions, coupled with the government's strong focus on Infra & Housing, will aid future volumes," Geojit stated

Geojit: Margins of Ramco
Cements to improve

LTP: Rs 2,415.20
Prabhudas Lilladher (PL) has included KEI Industries in its stock recommendations. The brokerage has a 'Buy' call on the counter with a target price of Rs 2,908 per share. The stock has jumped 63.10% in 2023 so far

KEI Industries share
price target

The company has maintained its healthy revenue growth guidance at 16-17% and expects 11% margins in the near term, given strong demand outlook in sectors like infra/railway/data centres etc. We are positive for long term given focus on diversification of product portfolio and de-risking business (retail accounts for 44% with target to reach 48-50% in FY24); scale-up in distribution network (1,910 dealers, will grow by 7-8% per annum); healthy balance sheet with net cash of Rs 400 crore (including acceptances) by Mar-23; and strong order book of Rs 3,570 crore across domestic & export EPC & cables businesses," the brokerage stated. PL has upgraded KEI Industries from 'Hold' to 'Buy'

PL upgrades KEI Ind

LTP: Rs 2,378.70
As per brokerage Kotak Institutional Equities, investors can 'Buy' InterGlobe Aviation, IndiGo's parent, shares for a target price of Rs 3,200 apiece. On a year-to-date (YTD) basis, the stock has risen 16.41%. The brokerage has maintained its 'Buy' call but lowered the fair value by around 6%. "We expect IndiGo's near-term financials to get impacted by the ongoing P&W issues (FY2024-26) and high crude prices (impact limited to 2QFY24). We cut our estimates by 10-16% largely on the back of these transient issues - P&W - powered aircraft are unlikely to be part of the fleet from FY2028. We thus lower fair value by a smaller 6% quantum to Rs 3,200 (includes roll-forward as well)," Kotak said

IndiGo share price target

LTP: Rs 276.30
In the small-cap space, ICICI Direct Research has initiated a 'Buy' call on KNR Constructions, suggesting a target price of Rs 340. "We like KNR as it enjoys a strong execution track record with the reputation of completing projects on time/ahead of the schedule. The company also enjoys healthy balance sheet (debt free and equity requirement for HAM to be funded through internal accruals) and strong return ratio. We believe that KNR's focus on diversifying geographically as we well as segment wise, could drive accelerated order inflows and sharply improve growth visibility," analysts at ICICI Direct stated

KNR Constructions

"Nifty remained volatile before closing with a doji pattern on the daily timeframe. This suggests a possible pause in the prevailing bearish trend. From here, the market might consolidate a bit before starting a new trend. Support on the lower end is pegged at 19,600. A fall below 19,600 may initiate fresh shorts. On the higher end, resistance is placed at 19,755," said Rupak De, Senior Technical analyst at LKP Securities

Technical view: Nifty outlook

"Nifty Bank experienced a brief respite following a four-day sell-off, with buyers gaining traction from lower levels. However, the index continues to trade below its 20-day moving average (20DMA), which is currently positioned at 45,000. A close above this level would signal a potential resumption of the upward momentum. On the downside, the lower-end support now rests within the 44,500 to 44,000 zone. A breach below this support range could result in additional selling pressure on the index," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities

Nifty Bank outlook

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

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