Produced by: Harshita
Designed by: Manoj Kumar
Stocks that share market analysts recommended on September 5, 2023: Nestle India, APL Apollo Tubes, Tech Mahindra, and Axis Bank
Stock brokerages including Axis Securities, Sharekhan, LKP Securities, and Motilal Oswal have come out with research reports on select stocks namely Nestle India, APL Apollo Tubes, Tech Mahindra, and Axis Bank. Here's what brokerages said about these counters.
Stocks to buy
Brokerage firm Axis Securities has a ‘Buy’ rating on Nestle India stock with a target price of Rs 24,100 per share. According to the brokerage, the company's Q2CY23 performance was robust, with domestic revenue growing by 14.6% YoY and exports surging by approximately 25% YoY, driven by continued expansion into new markets and channels.
Nestle India share price target
Analysts at Axis Securities said, "We remain positive on Nestle as it consistently delivered resilient performance led by 1) Efforts towards rural penetration and market share gains through the RURBAN strategy, 2) Constant focus on innovation (launching 110+ products in the last seven years), 3) Premiumisation in the core categories, 4) Entry into new categories of the future (Purina Pet care and Gerber’s for toddlers), and 5) Introduction of D2C platform to gauge consumer attention."
Why Nestle may be a good investment
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Sharekhan has a ‘Buy’ rating on APL Apollo Tubes Ltd stock with a target price of Rs 2,000 per share. According to the brokerage, strong earnings growth outlook (expect 45% PAT CAGR over FY23-26E), high RoE/RoCE of 34%/44% would narrow the valuation gap with listed peers and makes the risk-reward scenario favourable.
APL Apollo Tubes Ltd share price target
"We have introduced our FY26 earnings estimate in this report. APL’s presence in a niche business, first-mover advantage (introduction of innovative, first-of-its-kind products) in the structural steel tubes space, and improved earnings quality (better margin/RoE profile) could help reduce the valuation gap with other listed building material companies. We expect APL to sustain a high earnings growth momentum, supported by robust double-digit volume growth and margin expansion," said Sharekhan in its report.
Why analysts are positive on APL Apollo Tubes
Brokerage firm LKP Securities has a ‘Buy’ call on Tech Mahindra stock with a target price of Rs 1,320 per share. Tech Mahindra has recorded a breakout to a swing high on the daily chart, aligning with the bullish trend in the IT sector, according to the brokerage.
Tech Mahindra
share price target
"Tech Mahindra stock has risen above the 21-day Exponential Moving Average (EMA) on the daily timeframe. A potential positive crossover in the RSI (Relative Strength Index) could further bolster the positive momentum in the stock. On the upside, the stock may advance towards 1,320. On the downside, there is support at 1,224," said analysts at LKP Securities.
Tech Mahindra stock
may rally
Motilal Oswal has a ‘buy’ rating on Axis Bank stock with a target price of Rs 1,175 per share. As per the brokerage, Axis Bank remains focused on building a stronger, consistent, and sustainable franchise. With asset quality issues behind, slippages and credit costs are likely to stay under control.
Axis Bank share price target
"The rise in deposit cost will continue to exert pressure on margins; however, the focus on retail liabilities, improving mix of high-yielding loans and a gradual reduction in low-yielding RIDF bonds (2.3% of assets) should limit margin decline. We thus, estimate ~18% CAGR in loans over FY23-25. While the bank will continue to make investments in technology and branches, we estimate the cost-income ratio to moderate to 43% by FY25E," said Motilal Oswal on Axis Bank.
Tailwinds for Axis Bank
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.