With markets rallying substantially in the last few months, it is time to take calculated risk in stocks.
Brokerage houses come up with research reports from time to time, based on various fundamental aspects and suggest price targets. Here are a few stocks that have been recommended by some of the leading broking houses in the country.
Edelweiss has a buy rating on the stock of Adani Enterprises with a target of Rs 89, as against the current market price of Rs 70.
"AEL reported better than estimated Q1FY17 operating profit of Rs 5.4bn, and adjusted PAT of Rs 2bn on lower raw material costs and other operating expenses.
While coal trading volumes spurted 31% YoY to 24MT, mining business more than doubled volumes (2.1MT versus 0.9MT last year).
City gas volumes however, grew by mere 4 per cent (97mmscmd versus 93mmscmd). Going ahead, the nascent renewable business and coal MDO opportunities‐where AEL enjoys early mover advantage‐will be key growth areas. Maintain 'BUY'," Edelweiss has said in its research report.
Axis Capital has a buy call on Suprajit Engineering with a price target of Rs 249, against the current market price of Rs 216.
"We believe next leg of growth for Suprajit is likely to be driven by (1) gaining share in global auto and non-auto cables (incl inorganic); (2) increase in content supplied for CBS/ABS in domestic 2Ws; (3) focus on aftermarket space (both lamps & cables). We incorporate Wescon in our estimates and reiterate BUY with a revised target price of Rs 249 (20x FY18E EPS) vs. Rs 220 earlier," the firm has said in its research report.
Shriram City Union Finance
Shriram City Union Finance is the largest financial conglomerates having significant presences in small enterprising financing, commercial vehicle financing business, retail finance, life and general insurance,
stock broking, chit funds and distribution of financial products. The stock is trading at a P/E ratio of 24.64 which is good for investment.
With the growing Indian economy, with significant growth in India's GDP, the company is expected to increases its top line as well as bottom line figures.
All the rating companies, like India Rating, Crisil, Care, Icra have given stable to positive rating for Shriram City Union Finance which is a positive factor for investment in the company's stock.
Axis Capital has a buy call on Balkrishna Industries with a price target of Rs 1019. The stock of Balkrishna was last trading at Rs 848 on the BSE.
"We had highlighted in our last result update that FY17E EBITDA margin can surprise (vs. Street estimates) on (1) benefits of Bhuj ramp-up (improving product mix) and (2) better USD realization; despite (1) 5%-7% lower Euro realization and (2) higher commodity costs (up >20% in Q1). We raise FY17/ 18 EBITDA estimates by 4%-7% on strong results and reiterate BUY as company enters its best-ever FCF phase (9% average yield). Our revised TP is Rs 1,019 (14x FY18E EPS) vs. Rs 845 earlier," the firm has said in its research report.
ICICI Direct is bullish on Solar Industries and has placed a buy call on the stock, with a price target of Rs 720.
"On improvement in bulk volumes due to higher coal production in India, pick up in cartridge (both domestic and exports), improved visibility of orders from defence segment along with capacity expansion in overseas markets, we believe SIL's earnings will grow at CAGR of 20.6% over FY16-FY18E. We value Solar at 27x FY18E EPS of Rs 26.7 to arrive at a target price of Rs 720/share and maintain our BUY rating on the stock."
J Kumar Infraprojects
Edelweiss has a buy call on J Kumar Infra Projects with a price target of Rs 400.
"With capital costs remaining in control, net profits rose 16% YoY to Rs 295 million. The company has formally received the much-delayed Mumbai Metro Line 3 (Rs 50 billion) and Line 7 (Rs 3.6 billion) projects, while agreement signing for Line 2A project (Rs 13.5 billion) is expected shortly. Ground work on all the 3 metro projects has already started. Delays in award of the metro projects and our conservative stance on execution ramp up results in 4%/7% cut in FY17/18E earnings. However, we believe JKIL remains one of the best bets in the EPC space owing to strong revenue visibility (book-to-bill at 7x), healthy balance sheet (net debt:equity at 0.1x) and attractive valuations (trading at 6.5x FY18E P/E). Maintain Buy with revised target price of Rs 372 (Rs 400 earlier)," the firm has said in its research report.
The contents of the article is sourced from the research report of of brokerage houses. The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and brokerage houses do not accept culpability for losses and/or damages arising based on information in this article.