RBI’s policy announcement would be the key event to watch out this week where investors would gauge for indication with regards to rate hike pause. This along with a shortened trading week would keep the market range-bound.
JM Financial forecast Archean Chemical Industries (ACIL) sales, EBITDA and EPS to grow at 27%, 34%, and 44% CAGR, respectively, over FY23-25E. Moreover, the brokerage expects RoCE (post-tax) to improve to 29% by FY25E. “We initiate coverage on ACIL with a 'buy' rating and a target price of Rs 785 per share”, said JM Financial.
HDFC Securities likes Star Health for its strong moats, including a dominant agency-led distribution network, retail business mix, and best-in-class opex ratios. “We expect the company to deliver revenue/APAT CAGRs of 21%/26% and RoEs in the range of 14.7-16.8% over FY23-FY25E,” said HDFC Securities, maintaining a buy with a target price of Rs 795.
Axis Securities recommends a 'buy' rating on Kotak Mahindra Bank with a target price of Rs 1,906 per share as its credit growth is likely to remain buoyant; focus on building granular retail-led liability franchise, stable margins and sound asset quality.
SMIFS value the stock on forward P/E multiple of 25 times factoring in moderate demand along with heavy capex execution over the next 3 years will lead to higher fixed cost which may impact operating margins and might drag the ROCE further, and, thereby, arrive at target price of Rs 633 per share with a BUY rating on the stock.
“Highest domestic revenue growth in a decade, at 14.8% in CY22, led by both volumes and pricing Broad-based uptick across product categories and geographies and investment in digital channels driving efficiency,” said BOB Capital. Innovation, premiumization and product launches remain key elements of growth, it said with a buy and a target of Rs 22,860.
“On the daily charts, Nifty has managed to close above the 20 DMA, which is a sign of strength. The daily momentum indicator has a positive crossover which is a signal. Thus, both price and momentum indicators are suggesting further upside,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
On the daily charts we can observe that the Nifty for the whole day consolidated in the zone of 17,310 – 17,430 where the crucial Fibonacci retracement level (17,429) and the 40-DMA (17,406) is placed. Overall, the uptrend is intact and this consolidation should be used as an opportunity to initiate fresh longs. On the upside, the immediate short-term target is placed at 17,500," said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
“The trend for Bank Nifty will remain positive as long as the index sustains above 40,000. On the higher end, immediate resistance is visible at 41,000; above 41,000 the index may move towards 42,000 over the short term,” said Rupak De, Senior Technical Analyst at LKP Securities.
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