Markets have hit a new peak, with the Sensex and the Nifty scaling new lifetime highs. It maybe time to exercise some caution. Here are a few stocks that brokerage houses are betting on.
ICICI Direct believes that healthy deal wins and client additions for Infosys are a positive. It also expects margin improvements through from FY 19-21. It also sees digital contribution to be a big positive for the company.
"Digital being a multiyear opportunity and relatively less impacted by macro slowdown, will be key growth driver for Infosys. Further, we believe healthy deal wins will enable the company to narrow the revenue and margin gap with TCS. Hence, we maintain BUY rating on the stock with a target price of | 805 (based on 18x FY21E EPS, which is 15 per cent discount to TCS," the brokerage firm has said in a release.
Sharekhan has a Buy rating on the stock of Bajaj Finance, with a price target of Rs 3,400. The research firm notes that the company has a well-diversified balance sheet and steady asset quality and apart from it growth capital could also be a big diffrentiator.
"Bajaj Finance currently trades at 5.9x its FY2021E book value. When viewed in perceptive of high growth and strong asset quality, we believe these premium valuations are sustainable. We introduce our estimates for FY2021E and rollover the price target (PT). We maintain our Buy rating with a revised price target of Rs. 3,400," the brokerage firm has stated.
The shares of Bajaj Finance are currently trading at Rs 3,031.
Broking firm, Anand Rathi has a Buy Call on AIA Engineering with a price target of Rs 2,218 in its research report.
"The higher entry barrier (technological advances) and deeper penetration are likely to keep good volume growth at least for the next five years. We expect earnings to clock a 21% CAGR over FY18-21. Thus, we retain our Buy rating, with our target price of Rs 2,218, at 27x FY21E earnings," the company has said.
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