The benchmark Indian index, the Sensex has hit a 52-week high of 32,000 points. There are very few shares that are reasonably priced for investment. Here are a few stocks that could still make investment sense at the current levels as per a few renowned brokerages.
K R Choksey is bullish on the stock of Sterlite Technologies and has set a price of Rs 308 on the stock.
"We expect the company to deliver strong performance through FY18-19E on the back of exponential digitization growth, project wins from government, rapid execution of order book (12-18 months), and implementation of 5G network driven by optic fiber.
We believe that Sterlite Tech augurs well to deliver end-to-end services under one roof, right from manufacturing to integration of software and service solution around optical fiber, which would be the key to the nation's digitization. We have re-rated the stock and upgraded the target price to Rs 308 (upside of 79 per cent from current market price) based on 28xFY19E EPS of 11," the research firm has said.
Check stock quote of Sterlite Technologies
Dolat Capital has a buy rating on Bajaj Finance with a price target of Rs 1,677 per share. "Going by the rich historical valuation trends, we believe the stock clearly deserves a multiple of 5.9 x P/ABV FY18 earnings and a price target of Rs 1,677. The structurally Return on Equity focused model (20-21 per cent sustainable RoEs to be maintained; RoAs of 3%) coupled with clear business and earnings momentum visibility deserve a premium multiple. At the current market price, the stock trades at 5.4x P/ABVFY19E," the firm has said.
Edelweiss has a buy rating on the stock of Jain Irrigation with a price target of Rs 142.
"We met Anil Jain, MD, Jain Irrigation (JISL), to gain insights into the company's business strategy.
While it continues to perceive domestic MIS segment as a high potential opportunity, in the processing business JISL is eyeing entry in the complementary spices segment with the target of being a branded food player in the long run. Along with driving growth, JISL continues to focus on keeping debt at a manageable level and is targeting to prune net debt to Rs 20 billion (FY17: Rs 31 billion) aided by value unlocking in international MIS and agro processing segment. Maintain ‘BUY'," Edelweiss has said in its report.
Edelweiss also has a buy call on the stock of Aarti Industries. The brokerage firm has set a price target of Rs 1,000 on the stock. "We believe integrated operations will allow Aarti widen its product
portfolio and carve a market for its co and by‐products. We expect ongoing capex of Rs 4-4.5 billion per annum to drive revenue and PAT CAGR of 14% and 20%, respectively, over FY17‐19. At CMP, the stock trades at 17.5xFY19 EPS. Valuing the stock at 18xFY19E P/E gives us a target price of Rs 1,000. Maintain ‘BUY'," the firm has said in its research report.
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