For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

2 Stocks To Buy Trading Close To Their 52-Week High

|

As of 17 Jan, 10:10 am the shares of HDFC Bank were trading at a market price of Rs. 1,532.10 and the shares of Wipro Limited were trading at a market price of Rs. 637.65. Both of these stocks are trading near to their 52-week high. On 18 October 2021 and 28 January 2021, respectively, HDFC Bank's stock reached a 52-week high of Rs 1,725 and a 52-week low of Rs 1,342. It is now trading 11.30 percent below its 52-week high and 14% above its 52-week low. According to the NSE, Wipro Ltd's shares reached a 52-week high of Rs 739.85 and a 52-week low of Rs 397.75 on 14 October 2021 and 25 March 2021, respectively. It is now trading at a price that is 13.77 percent lower than its 52-week high and 60.38 percent higher than its 52-week low. ICICI Direct has issued a buy call rating to both stocks, indicating that they have high upside potential in 1-year.

 

HDFC Bank

HDFC Bank

The brokerage house ICICI Direct has said that "HDFC Bank's share price has grown ~2.5x in the past five years. We remain positive and retain our BUY rating on the stock. We value HDFC Bank at ~3.7x FY24E ABV and Rs 50 for subsidiaries and maintain our target price at Rs 2000 per share."

Q3FY22 results according to the brokerage

  • The bank's performance was mixed; lower provision aided profit after tax (PAT).
  • Loans were up 16.5% YoY at Rs 12.6 lakh crore with deposits up 13.8% YoY.
  • Net interest income (NII) up 13% YoY, net interest margin (NIM) steady QoQ at 4.1%, C/I stable QoQ to 37%.
  • PAT up 18.1% YoY at Rs 10342 crore, driven by lower credit cost.
  • Gross non-performing assets (GNPA) fell 9 bps QoQ to 1.26%, restructured book at ~137 bps.

Key triggers for future price performance of HDFC Bank according to the brokerage

  • Strategy to expand segments, geography & digital focus to aid future growth.
  • A sufficient specific and contingency buffer of 80 bps provides comfort.
  • Building up of physical/ digital infra to drive growth led by the competitive edge.
  • Encouraging demand resolution & superior franchise to aid earnings revival.
Wipro Ltd
 

Wipro Ltd

According to the brokerage "Wipro's share price has grown by ~3.6x over the past five years (from ~Rs 178 in January 2017 to ~Rs 640 levels in January 2022). We maintain BUY on strong deal momentum especially on large-size deals. We value Wipro at Rs. 750 i.e. 26x P/E on FY24E EPS."

Q3FY22 results according to the brokerage

  • Wipro reported weak Q3FY22 results on the margins front.
  • Revenues increased 3% QoQ in cc terms, 2.3% growth in US$ terms.
  • Wipro closed 11 large deals with TCV of US$600 million in Q3.
  • Guided for 2-4% QoQ revenue growth in Q4FY22E.

Key triggers for future price performance of Wipro according to the brokerage

  • The strategy of the new CEO is to drive a turnaround in the company.
  • Restructuring of organisation, client mining, aspiration to win one large deal every quarter to drive growth.
  • Higher penetration in Europe, client mining, acquisition of new logos and traction digital revenues to further boost revenue growth.
Disclaimer

Disclaimer

The above stocks have been picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X