The Sensex closed at a new record high of 52,773.05 points on Tuesday, gaining for four successive days. The market capitalisation of BSE-listed companies reached a lifetime high of Rs 2,31,58,316.92 crore on Tuesday. With the Indian markets hitting and closing at record highs, all eyes would now be on the outcome of the US Fed meet on Wednesday. Here are 7 stocks to watch for in trade on Wednesday, June 16, including "buy" stock calls from broking firm Motilal Oswal and Sharekhan.
1. Kajaria Ceramics
Broking firm, Sharekhan has a "buy" call on the stock of Kajaria Ceramics, which is India's largest manufacturer of ceramic/vitrified. "Given the strong demand outlook over next two to three years, the company is has ventured into brownfield expansion which is expected to maintain strong earnings growth. Its rising free cash flow generation and high cash surplus would aid in expansion plans without leveraging balance sheet. We have increased our net earnings estimates for FY2022E-FY2023E, factoring higher volume and operating profit margins.
We expect revenue/operating profit/net profit to rise at a 18%/26%/29% CAGR over FY2021- FY2023 estimated. We retain our Buy rating on the stock with a revised target price of Rs 1,270," the brokerage firm has said.
The stock of Kajaria Ceramics was last trading at Rs 1,000.50 on the NSE.
2. Spencer's Retail
Spencer's Retail is a stock that could be in the limelight, post its quarterly numbers. The company is a leading player in the retail business, across categories.
Spencer's Retail reported narrowing of its consolidated net loss to Rs 34.53 crore for the fourth quarter ended on March 2021.
The company had posted a net loss of Rs 49.26 crore in the January-March period a year ago, Spencer's Retail said in a statement to the exchanges. The company's revenue from operations was down 7.57 per cent to Rs 592.36 crore during the quarter under review, as against Rs 640.88 crore in the year-ago period.
Spencers Retail shares were last seen trading at Rs 79.80 on the Bombay Stock Exchange.
3. ICICI Prudential Life
Motilal Oswal has a "Buy" on the stock of ICICI Prudential Life. The brokerage expects the life insurance company to deliver 31%/29% CAGR in new business APE/VNB growth over FY21-23E.
"We maintain our Buy rating with a target price of Rs 675 per share". That is approximately a 15% upside from the current market price of Rs 587.50 on the NSE.
Employees of Steel Authority of India one of the top steel players in the country, have called for a strike on June 30 to press for their wage revision demand, trade union leaders claimed on Tuesday.
The decision could affect the company's production and mining activities on that day as about two-lakh permanent and contractual workers are expected to join the cease work, they said. Workers of another state-run steel company Rashtriya Ispat Nigam will also join the day-long strike, the union leaders said.
Recently, broking firm Motilal Oswal had suggested buying the shares of SAIL. The shares of SAIL were last seen trading at Rs 137.30.
5. Adani Group Stocks
Despite a clarification, on frozen shares Adani group stocks continued to falter. Three of the six listed group stocks were stuck at the lower end of the circuit filter on Tuesday. As trade opens on Wednesday June 16, these set of stocks are likely to remain volatile as the dust settles.
Earlier this week, there were reports that shares of the Adani group being held by three foreign funds were frozen by NSDL, which the group denied. In fact, NSDL, also confirmed that the stocks were not frozen.
6. Reliance Home Finance
Shares in Reliance Home Finance could see activity on Wednesday. Authum Investment and Infrastructure Ltd has emerged as the highest bidder for Reliance Home Finance, a group company of the Anil Ambani-promoted Reliance Group, with Rs 2,887 crore offer. As per PTI reports, lenders led by Bank of Baroda would receive Rs 2,887 crore, of which Rs 2,587 crore or 90 per cent would be paid upfront and remaining Rs 300 crore within a year.
The shares of Reliance Home Finance were last seen trading at Rs 4.94 on the NSE.
7. LIC Housing Finance
Mortgage financier LIC Housing Finance will be a stock in action as the company reported a 5 per cent decline in its profit after tax at Rs 398.92 crore in the quarter ended in March 2021 due to higher provisioning for bad loans.
It had reported a profit after tax of Rs 421.43 crore in the year ago period. For FY2020-21, net profit grew by 14 per cent to Rs 2,734.34 crore as against Rs 2,401.84 crore in the previous year.