Yes Securities Bullish On These 3 Stocks, Sees 30% To 43% Gains

Yes Securities has a "buy" call on the stocks of SBI Life, Bajaj Finance and Dalmia Bharat. The Brokerage sees an upside potential of 43% in SBI Life, whereas in Dalmia Bharat it sees gains of 33%, while in Bajaj Finance the brokerage believes the stock can surge as much as 30% from current levels.

Buy SBI Life stock for 43% gains, says Yes Securities

According to Yes Securities, the rate of unwind has emerged as a new talking point on the EV walk. The rate of unwind has moved up to 8.6% in FY23. This is due to the yield curve moving and also due to the portfolio composition moving in favour of Non-Par, which is longer duration.

"We maintain 'BUY' rating on SBI Life with a revised price target of Rs 1600. We value SBI Life Insurance at 3.0x FY24 P/EV for an FY24E/25E RoEV profile of 22.2/22.5%," the brokerage has said.

Dalmia Bharat: Buy for a 33% upside

On Dalmia Bharat the brokerage has set an upside of 33%. It likes the stock for the company's stronghold in East/South key markets and its venture in west and seeking entry in central India. Strong Infra push in the East/South by govt, incremental volumes from new added capacities, Cost optimization measures (plans to reach 324MW of green power capacity) set to improve the efficiency are other factors that are highlighted by the brokerage. "We maintain our BUY rating with a target price of Rs 2,582 valuing the stock at 15x EV/EBITDA on the FY25E," Yes Securities has said.

Buy Bajaj Finance stock

On Bajaj Finance, the brokerage has marginally upped its AUM growth forecast and pruned credit cost estimates which has led to FY24/25 earnings being upgraded by 4-5%. Addition of new product lines like Gold Loans, Auto loans, CV finance, Tractor loans, Microfinance and Emerging Corporate loans would support long-term growth and profitability of the franchise. Bajaj Finance currently trades near its seven-year average 1-yr rolling fwd. P/ABV of 5.6x.

"With expectations of 25% AUM CAGR and average 4.7%/23.7% RoA/RoE delivery over FY23-25, we reiterate BUY on the stock with an upgraded 12-month price target of Rs 7,865," the brokerage has said.