Stock brokerages recently came out with research reports on select stocks namely Bank of Baroda (BOB), Godrej Properties, CEAT and InterGlobe Aviation (IndiGo). All the four shares have received 'Buy' recommendations from individual broking firms. Analyst targets on these four stocks suggest up to 30% potential upside over the next 12 months
Prahbudas Lilladher has a ‘Buy’ rating on BOB. It has a target of Rs 220 on the stock, suggesting a 30% potential upside ahead. The brokerage said deposits for the system could have also seen a pick-up in the March quarter, which may bode well for banks, cushioning NIMs to an extent
"Our FY23 estimates for BOB could be upgraded by 3-5% basis better loan growth and NIMs; FY24 and 25E estimates could be increased 2-3%. It is getting increasingly clear that the system loan growth for Q4FY23 might surprise positively. FY24E loan growth remains crucial," Prabhudas said
Nuvama Institutional Equities is positive on Godrej Properties, as it sees 16% potential upside on the stock, thanks to the revival in housing demand, rapidly expanding project portfolio and new launches. The brokerage finds the stock worth Rs 1,424 apiece
Godrej Properties clocked Q4FY23 pre-sales of Rs 4,050 crore and Rs 12,200 crore in FY23, its best-ever quarterly and annual sales. Collections in Q4FY23 and FY23 shot up 43% and 30% YoY, respectively. Deliveries at 10 million square feet in FY23 were also the highest-ever. The company added five new projects with a gross development value of Rs 600 crore in Q4FY23. For FY23, new projects surpassing the guidance of Rs 15,000 crore, said Nuvama
Reliance Securities cited volume recovery ahead; it sees regular price hikes and improvement in margins while suggesting a 'Buy' rating on CEAT with a target price of Rs 1,850 at a valuations of 12 times EPS. The brokerage sees 28% potential upside on the counter
"CEAT expects double-digit growth in FY23E, on account of the new capacity, better OEM demand, stable replacement volume, and price hikes coupled with favourable exchange rate on export revenue. Price hikes taken across segments and lower raw material cost while reducing high-value inventory gradually would expand its margins going forward," it said
ICICI Securities sees 28% upside potential on InterGlobe Aviation. The brokerage maintained its ‘Buy’ rating on the aviation stock, with a target price of Rs 2,415. IndiGo may register Rs 300 crore in profit before tax (PBT) in Q4FY23 and Rs 2,300 crore in PBT in FY23, ICICI Securities
"Profits are highly sensitive to yields which is the key upside/downside risk to our estimates. IndiGo remains well-placed to benefit from strong systemic demand and its leading competitive positioning. IndiGo remains focused on growth and internationalisation. These goals are intended to be achieved within the already existing business framework," ICICI Securities said
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