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Stocks To Buy: Emkay Global Sees Potential Upside Of 23% In 2 Mid Cap Stocks
Leading brokerage firm Emkay Global has assigned buy call to two mid cap stocks. The brokerage sees maximum return potential of up to 23% in two mid cap stocks namely Canara Bank and Persistent Systems Ltd. Check key takeaways below:
1. Canara Bank
Emkay global has assigned buy rating to Canara Bank with a target price of Rs 330 and a potential return of up to 23%. The current market price of Canara Bank is Rs 268 apiece with 52-week high at Rs 272 apiece and 52-week low at Rs 171 apiece, respectively. The bank's market capitalisation is Rs 48,727.54 crore. The mid cap bank came into existence in 1906.
According to Emkay Global, "We raise earnings estimates by 22-27% over FY23-25, factoring-in the higher credit growth/margin and lower tax rate. We expect RoA/RoE to improve to 0.9%/17% by FY25E (without considering capital raise). We retain BUY with revised TP of Rs330/share, based on 0.7x FY24E ABV and subsidiary/investment value of Rs 23."
Canara Bank is a state-owned commercial bank headquartered in Bangalore.
2. Persistent Systems Ltd
Emkay Global has assigned buy call to mid-cap company, Persistent Systems Ltd with a target price of Rs 3950 apiece and potential return of up to 8%. The current market price of Persistent Systems is Rs 3663 apiece with 52-week high at Rs 4986 apiece and 52-week low at Rs 3091 apiece, respectively.
The company has a market capitalisation of Rs 27,995 crore. The stock has given a 5-year return of 449% and 3-years return of 488%.
Persistent caters to banking and financial services, insurance, healthcare, life sciences, industrial, software, telecom and media industry. The company operates in the US, France, India, South Africa, Singapore, Japan and Australia. Persistent is headquartered in Pune, Maharashtra, India, according to its official website.
According to Emkay Global, "We retain BUY with TP of Rs 3,950 at 25x Sep-24E EPS (earlier Rs3,800), considering the strong execution, favorable industry tailwinds, and strong earnings trajectory (24.4% EPS CAGR over FY22-25E)."
Disclaimer
The stock has been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
