The Indian market turns out to be in a consolidation phase, and the uptick results in a profit reserve.
After weakness appeared in the upper grades on September 14, Nifty showed a bullish uptick with a rank inventory on September 15 and closed the day with decent 82-point winnings.
“We are seeing significant purchases in all spaces in this consolidation phase and this is in fact a positive sign. However, the participation of the bank package is essential for any directional movement of the index. Given the prevailing scenario, we recommend intensive monitoring of the effects of the U. S. Fed assembly. looking for clues,” said Ajit Mishra, vice president of research at Religare Broking.
Choosing moves is the mantra now. According to the recommendations of several analysts, here are 12 actions you can bet on over a one-year period:
Analyst: Jyoti Roy – DVP- Stock Strata, Angel Broking
Hotel Chalet Objective of the course: 200 rupees
The company’s hotel contains six hotels operating in the major Indian cities of Mumbai, Hyderabad, Bengaluru and Pune, representing 2,554 keys.
After a sharp drop in the occupancy rate in April, the corporate reported a sharp increase in the occupancy rate from June to August.
The corporate recorded a better-than-expected set of figures for the first quarter of the financial year21, as real estate advertising ensured the stability of the figures, given the sharp decline in hotel revenue.
Occupancy grades have already begun as of July and are expected to increase gradually in the coming months.
The analyst expects an improvement in activity after the holiday season and a normalization of operations at the time of fiscal year 22.
MotoCorp Hero course objective (c): 3,422 rupees
Hero MotoCorp is the leading motorcycle manufacturer in India with an overall market percentage of 54%.
Entry-level motorcycles in rural India are experiencing a faster uptick in sales after COVID-19, given the monsoon and transition from public transport to non-public vehicles.
Hero MotoCorp continued to surpass two-wheel expansion and reported year after year in motorcycle sales by August 2020, as sales volumes returned to pre-COVID levels.
“Hero Motocorp remains one of our most sensible two-wheeled vehicle options due to strong demand from rural India and percentage market gains,” the analyst said.
Metropolis Healthcare (c) Course objective: 2,156 rupees
The corporation published a set of better-than-expected figures for the first quarter of the fiscal year21, while the control guided further improvement in its business for the quarter.
While non-COVID revenues have returned above 80% of pre-COVID levels, COVID-related revenues will more than offset any deficits in the current quarter.
With a new opening of the economy, the analyst expects non-COVID revenues to succeed in the pre-COVID point in the third quarter of fiscal year21.
“We are positive about corporate given expected long-term expansion rates of nearly 15% CAGR, solid margin profile and moderation in competitive intensity due to consolidation in the sector,” said the analyst.
JK Lakshmi Cement (c) Target: Rs 328
JK Lakshmi is a cement company mainly in northern India, which is the highest region favored by the cement industry given a greater source and dynamic demand.
The corporate also released a set of figures for the first quarter of fiscal 21 due to a favorable regional presence.
Despite the sharp drop in volumes, cement plants achieved their margins due to lower electricity and fuel costs, which are expected to continue due to low crude oil prices.
“JK Lakshmi is our first selection in the medium-cap cement sector, as it is trading at a significant level relative to the old averages as well as the peer group,” the analyst said.
HCL Technologies course objective: Rs 793
HCL Technologies published a better-than-expected set of figures for the first quarter of fiscal year21, with revenue in line with street estimates, margins, and earnings exceeded estimates due to corporate burden containment.
Management comments were also forceful, noting that the transaction flow had advanced particularly since March, thanks to cloud-related services.
The management forecast for an expansion of profits from 1. 5% to 2. 5% for the quarter in consistent currencies for the rest of the year also provides convenience.
At the current price, inventory is quoted at a significant price with other high-cap IT corporations such as Infosys and TCS and offers prices to existing securities given the prestige of the market leader in infrastructure management.
Analyst: Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities
ITC (c) Course objective: 260 rupees
The inventory continues to offer a combination of cheap valuations, dividend yields and promises of long-term forging expansion in customer products and the emerging agri-food sector.
Strong traction in the food and hygiene portfolio deserves help with the fundamental expansion of customers’ products.
The fact that the cigarette industry returns to regulatory volume levels until the end of the first quarter of fiscal year21 rejects considerations of adjustments in smoking behaviour due to prolonged closures.
Inventory is quoted at an affordable valuation of 15 times the fiscal year 22E compared to the industry average of 34 times.
“We expect the RoE to succeed by 22% in fiscal year 22, which will be closer to the industry average of nearly 23%. The higher dividend payment policy makes dividend yields hot at around 5%. %,” the analyst said.
Indian Oil Corporation (c) Target: Rs 110
The analyst expects maximum marketing margins for automotive fuels to compensate for the continued weakness of refining margins.
Even though IOC is much larger than BPCL in terms of sales and net profit, it is quoted at more than 40% off the latter in terms of P/U and EV/EBITDA, the analyst noted.
“We have a buy-to-share score that shows exciting valuations at 6. 2 times EPS in the FY2E and a healthy dividend yield of only about 5%. We expect inventory to be revalued as BPCL is uninvested,” the analyst said.
CESC (c) Course objective: Rs 820
The independent company enjoys maximum predictability of money and profitability (more than 20% goes back to the share capital).
The analyst expects earnings per share to increase by up to 9. 9% in fiscal year 21 and 14. 8% in fiscal year 22.
High operating money leads to a healthy generation of loose money for the company.
Inventory is quoted at an EP five times fiscal year 22E and 0. 54 times in fiscal year 22E eBook.
“We have an Rs 820 fair, with the effects of the first quarter of fiscal year 21 reinforcing our investment thesis on the stability of regulated activities, moderating the losses of new distribution circles and the advanced use of Dhariwal,” the analyst said. .
Jindal Steel
The upward trend in domestic metal continues in September 2020, and is now emerging through Rs500/tonne (16% more) since the June 2020 lows.
China’s stimulus measures and its relative absence from world metals prices in export markets.
Spot metal margins have returned to FY19 grades and are expected to do so in the coming quarters.
The mixture of foreign strength of iron ore and the low costs of coquizable coal is ideal for Indian metal producers, as they benefit from the reduced domestic costs of iron ore.
The analyst expects the use of the domestic metal industry over the next 2-3 years, thanks to limited capacity additions.
JSPL control led to a 15% volume expansion in fiscal year 21.
The company plans to complete Oman’s disinversion in the near future. The agreement would reduce JSPL’s net debt from 6,000 to 6. 5 billion rupees or 17% and reduce net debt/EBITDA from 3. 4 times to 3. 9 times for fiscal year 21E.
In addition, this would include considerations on flat-term debt repayments in fiscal year 21E.
“JSPL is our selection in the metal sector due to its higher balance sheet, superior growth, strong CWF generation and 4. 8 times the horny EV/EBITDA for fiscal year 22E. We expect JSPL’s EPS to increase from Rs 12. 8 on FY21E to Rs 20. 4 on FY22E,” the analyst said.
Analyst: Siddharth Sedani, Vice President, Stock Advisory, Stocks and Stockbrokers of Anand Rathi
Hindustan Unilever (HUL) Course objective: Rs 2,452
HUL is the largest consumer goods company with one of the largest footprints of products and distribution networks.
The continuation of the strategy to aim at volume expansion and reduce curtains and other prices is expected to lead to superior performance in terms of expansion and profitability in the medium and long term.
Bharti airtel (c) Objective: 625 rupees
With a slow decrease in AGR contribution pressure, reduced competition, percentage market gain, and decent network capacity relative to its peers, the analyst believes that Bharti Airtel remains well placed for long-term expansion into the telecommunications space.
FDC – Goal 360
The company intends to drive expansion through the progression of quality products at prices.
The analyst believes that the company remains well placed for expansion given its strength in the ophthalmic product portfolios and SRO, its strong R
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