3 Stocks Sharekhan Has A “Buy” Call On

Ultratech Cement: Sharekhan has a “buy” call with a target price of Rs 7700

According to Sharekhan, UltraTech is expected to benefit from sustained healthy cement demand although petcoke/coal prices are expected to remain rangebound with very low probability of sharp decline. "It would be targeting Rs. 1000-1200 EBITDA/tonne in the near to medium term with expectations of a firm to upward trend in cement prices. It continues to remain on track with respect to its capacity expansion plans owing to strong demand outlook in infrastructure, rural housing and urban housing segments. We have lowered our price target to Rs. 8100 owing to downward revision in earnings estimates penciling higher power & fuel costs than earlier. We maintain our Buy rating on the stock, considering its long-term growth potential and reasonable valuations," the brokerage has said.

Axis Bank: Buy with a price target of Rs 1,140

Sharekhan remains optimistic on the stock of Axis Bank with a price target of Rs 1,140. "The stock currently trades at 2.0x/1.7x/1.4x its FY2023E/FY2024E/FY2025E core BV estimates. We remain positive on the bank as at least in the near to medium term, there are no asset-quality concerns. The bank has additional contingency buffers of 150 bps of advances over and above the PCR. As far as sustainability of NIM is concerned, we believe the balance sheet mix is improving both on the assets as well as liability side, which should partly offset the increase in cost of funds. However, pick-up in retail deposits mobilisation remains the key monitorable going forward. We also expect operating leverage to start to kick in and lend support to PPoP growth in the medium term. Near-term focus would be on Citi's portfolio integration," the brokerage has said.

Atul: Price target of Rs 7700

Sharekhan has a hold call on the stock o Atul with a price target of Rs 7700 on the stock. "The POC segment's margin continues to see weakness and is likely to remain under pressure in the near term, given concern of global economic slowdown. Moreover, valuation of 28x/24x its FY2024E/FY2025E EPS limits the upside potential from the current market price. Hence, we retain our Hold rating on Atul Limited with a revised price target of Rs. 7,700 (reflects downward revision in earnings estimates)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. 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 consult with certified experts before making any investment decision.