The brokerage house Geojit Financials in its recent report suggests these blue chip stocks for buying that are available at attractive valuation and also points out their brand value, leadership position and cash-rich position.
Also, these stocks have been considered to sail through during and after the current corona led crisis. It is to be noted that even after some recovery seen in Indian equities from the tumultuous sell off witnessed in March, benchmark indices so far during the year have crashed a massive 20%
Here is a list:
This stock has a 'buy' call from several of the broking firms which after its Q4FY20 results still see an upside of up to 80% on the stock. The broking firm Geojit suggest that a steep cut in the stock price of SBI from its 52-week high price of Rs. 373.3 scaled to a year back on July 18, 2019 is largely to do with the macros and has only partially to do with the bank's fundamentals.
The firm for a 1-year target sees the stock of SBI to scale higher by 28% to Rs. 240 per share. On June 12, 2020, the stock closed at Rs. 179.25 per share on the BSE.
The bank's profitability in the long run will be driven by improved asset quality at the end of moratorium, cut in deposit rates as well as better NIM.
The stock of housing finance company is seen to have a upside of 23% in the coming one year time. As per the broking firm, consolidate PAT at the firm grew with a 21% CAGR over the last 5 years. In the quarter ended March of FY20, the PAT grew 3.5% quarter on quarter. AUM at the firm also jumped 12% year-on-year.
2. Bajaj Finance:
For 1 a year term, Geojit estimates an upside of 23% in the stock which on a year to date basis has shed 45% in stock price. On February 20, 2020, the stock reached to its 52-week high price of Rs. 4923.20 per share. The stock closed up by 4.78% on June 12, 2020 at Rs. 2448.95. Adjusted PAT of the company came in at 37.9% year on year. Though due to higher provisioning due to Covid PAT fell 19.4% year on year.
For the FMCG to hotel player, the company sees an upside of 30% in the stock price. And the favourable factors seen in the stock shall be gradual lifting of the lockdown, attractive valuation and increase in cigarette price where the company commands an over 75% volume share will help the company pull back from the current lows. It maintains a 'buy' rating on the stock with a revised target price of Rs 260 per share. On June 12, 2020, the stock of ITC closed at a price of Rs. 82.25 per share.
5. ICICI Bank:
In a 1-year term the brokerage house sees upside in the stock of ICICI Bank of 18% to a target price of Rs. 420. On June 12, 2020, the stock of private sector lender ended at Rs. 344.25. On the back of its domestic loan book, the company has logged 10% growth in its advances on a year on year basis. Also, as per the brokerage firm, the bank with a healthy balance sheet commands a capital adequacy of 16.1% which is higher than the regulatory requirement of 10.5%.