February 2021 proved to be a roller coaster ride for the Nifty 50 index, exactly where the 1st trading day of the month saw a 5 per cent rise in the index, although the final day witnessed a correction of 4 per cent. The 2020 pandemic rally was driven by considerable FII shopping for on the back of several aspects such as the low-interest price regime. Research and brokerage firm Axis Securities stated that the upward shift of interest prices will present quick term challenges for the market place but the structural development story for India will stay intact. The brokerage firm has upgraded its December target by 7 per cent to 17,200. Corporate earnings for the October to December quarter have been fairly robust with 38 out of the 50 Nifty firms beating consensus expectations.
Axis Securities has also raised its earnings estimates for FY21, FY22, FY23 by 9 per cent, 8 per cent and 7 per cent, respectively. It sees a constant earnings recovery as this is the second consecutive quarter of a robust earnings upgrade.
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Top stock picks:
ICICI Bank: The brokerage firm has provided an ‘overweight’ rating to the stock, with a target price tag of Rs 666, implying a 9 per cent upside. Higher loan development, enhancing operating earnings, robust provision buffer coupled with a robust deposit franchise will support ROAE/ROAA expansion more than FY22-23E for the bank.
Manappuram Finance: Manappuram Finance is amongst the major gold loan NBFCs in India. It will take Manappuram Finance stock to jump 19.5 per cent from the existing level to touch target price tag of Rs 207 pegged by Axis Securities.
Can Fin Homes: Can Fin Homes has a purchase rating with a target price tag of Rs 573, a 22 per cent rally in stock price tag. Axis Securities expects loan development to choose up steadily as the corporation embarks to push development via competitive prices and new geographies.
Federal Bank: Kerala-based private sector bank has an ‘overweight’ rating with a target price tag of Rs 93 apiece. According to the domestic investigation firm, robust underwriting requirements, altering loan mix and robust retail deposit franchise, will support valuation to enhance from existing levels.
NOCIL Ltd: A jump of 12 per cent will be necessary for NOCIL to hit the target price tag of Rs 202 apiece. FY22E could see a healthful efficiency on the back of enhancing possibilities in the export markets and demand traction in domestic markets.
Varun Beverages: Axis Securities has provided a target price tag of Rs 1,230 to Varun Beverages. Healthy outlook on the upcoming season and tie-ups with major and quickly-expanding QSR players in India most likely to propel Varun Beverages development into a new orbit going ahead.
Relaxo Footwears: The target price tag for Relaxo Footwears is Rs 1,005 apiece. The brokerage firm remains positive on the stock from a lengthy term viewpoint provided immense development prospective.
Amber Enterprises: The brokerage firm sees a rally of more than 10 per cent in the Amber Enterprises stock with a target price tag of Rs 3,614 apiece. The close to term order outlook remains robust for RAC as nicely as mobility options.
Endurance Technologies: Endurance Technologies has a revised target price tag of Rs 1,714, a 21 per cent return. The domestic brokerage firm stated that the share of premium bikes in the general 2W portfolio has been increasing.
Steel Strip Wheels: Axis Securities has pegged a target price tag of Rs 877, implying an upside of 36 per cent from existing levels. Being in an oligopoly market place, Steel Strip Wheels commands leadership with a market place share of about 55 per cent in steel wheel rims and about 20 per cent in alloy wheels.
Lupin Ltd: Lupin has a target price tag of Rs 1,135 per share. The pharmaceutical corporation has taken many measures to enhance general EBITDA margins with the launch of worth-added merchandise and alternate vendor tactics to bring down the general procurement fees.
Tech Mahindra: The brokerage firm sees a 17 per cent upside in Tech Mahindra stock. The company’s management is expecting a robust recovery from provide-side constraints and expects recovery for the reason that of the ramp-up in new deal wins.
Bharti Airtel: The telecom giant Bharti Airtel will call for to jump 27 per cent to hit the target of Rs 676 apiece. The report noted that regulatory challenges are nicely recognized and Bharti Airtel is nicely-capitalized to deal with the payouts as it has raised sufficient capital.
HCL Technologies: HCL Technologies has a target price tag of Rs 1,088, a obtain of 17 per cent. HCL Tech won 13 transformational offers in the existing quarter. Deal wins for the quarter remained robust and showed a development of 13 per cent sequentially.
JK Lakshmi Cement: The stock is at present trading at 5.5x FY22E and 4.4x FY23E EV/EBITDA. Axis Securities recommends to ‘buy’ with a target price tag of Rs 400 per share valuing JK Lakshmi Cement at 6.5x of its FY22E EV/EBITDA.
(The stock suggestions in this story are by the respective investigation and brokerage firm. TheSpuzz Online does not bear any duty for their investment guidance. Please seek advice from your investment advisor prior to investing.)