Investors now await domestic GDP (gross domestic product) data for the April-June quarter (Q1 FY24), scheduled to be released post-market hours on Thursday, for cues.
Stocks such as Bajaj Auto, Reliance Industries Ltd (RIL), Dalmia Bharat, Piramal Enterprises, Mphasis and Bharat Forge could be in focus today as brokerages have suggested 'Buy/Add' calls for the said counters.
Axis Securities has given a 'Buy' call on the counter with a target price of Rs 5,400. "Bajaj Auto's focus on the 125cc+ segment is in line with the changing industry dynamics, where the share of commuter motorcycles is declining (around 60% of total domestic sales in FY16, coming down to 50% in FY23). The company through its exclusive dealership networks for KTM, Bajaj Motorcycles, Chetak Electric and 3-wheelers, offers differentiated customer experience and preserves brand value," the domestic brokerage noted.
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"The recent Triumph launch will also be marketed through the exclusive Triumph network, and we expect it to plug the gap in the portfolio. The company has robust domestic IC engine franchise, however, export pickup, and establishing market share through successful EV-2W/3W launches will be the key monitorable for the stock," Axis Sec stated.
Sharekhan has assigned a target price of Rs 2,880 for RIL. "RIL is our top pick. We expect continued strong earnings traction in its consumer-centric business – Jio (likely further telecom tariff hikes, 5G rollout, and ramp-up of home broadband) and retail (high growth in retail, led by market share gain and new commerce). We firmly believe RIL is a compelling long-term investment bet, given strong prospects across its businesses and potential value unlocking from retail, digital services, and financial services portfolio," it said.
"The management has outlined its future roadmap, which focuses on expansion (through mix of organic and inorganic routes), higher share of premium products and RE, and raw material security. Some of its priorities in FY24 include the timely completion of its ongoing expansion and the successful integration of JPA cement assets," Motilal Oswal Financial Services said. The brokerage gave a target price of Rs 2,400.
Motilal Oswal has suggested a target price of Rs 1,280. "Over the past two years, the company has strengthened its balance sheet by running down its wholesale loan book; made its wholesale book granular with no exposure over 5% of net-worth; improved texture of borrowings driving lower cost of borrowings; and fortified itself against contingencies with ECL provisions at 4.4% of total AUM," it said.
Institutional Research has given an 'Add' rating with a target price of Rs 2,460. "Mphasis' growth trajectory is expected to improve, supported by large non-BFS deal wins, bottoming out of the BFS portfolio (biggest vertical), and traction in new client acquisition," it mentioned.
Nomura has assigned a target price of Rs 1,157 for Bharat Forge. "We maintain our EV/EBITDA multiple at 15x, the mid-point of its historical trading band of 14-16x, and apply it to average FY25-26F EBITDA to arrive at our TP of Rs 1,157. Our EBITDA and PAT estimates for FY24F/25F are higher than the consensus estimates by 6.6%/8% and 13%/14.7%, respectively," it stated.
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.