Bulls were in action on Monday as the 30-share pack BSE Sensex surged 709.96 points, or 1.16 per cent, to close at 61,764.25, while NSE’s Nifty 50 rallied 195.40 points, or 1.08 per cent, to 18,264.40.
According to Axis Securities, the current setup is a ‘Buy on Dips’ market. “We recommend investors to maintain good liquidity to use such dips in a phased manner and build a position in high-quality companies with an investment horizon of 12-18 months,” it said.
Axis Securities has maintained the Dec’23 NIFTY target at 20,400 by valuing it at 20x on Dec’24 earnings. “While the medium to long-term outlook for the overall market remains positive, we may see volatility in the short run with the market responding in either
direction,” it said.
The brokerage firm is betting on five midcap stocks in its latest report. Here’s what Axis Securities said about these stocks:
Dalmia Bharat Limited | Buy | Target Price: Rs 2,260 | Current Price: Rs 2,085 | Upside: 8%
Axis Securities believes the company is well-positioned to grow its revenue and profitability moving forward, supported by increasing cement demand in its key markets in both trade and non-trade segments, cost optimization measures, and increasing premium cement sales aided by capacity expansions.
Polycab India | Buy | Target Price: Rs 3,515 | Current Price: Rs 3263.65 | Upside: 8%
“Polycab continues to maintain its leadership position in the organized cables and wires segment with a market share of over 24 per cent. With a strong distribution network and a strong brand recall, the company continues to gain market share in Wires and Cables and FMEG segments,” said Axis Securities.
“Furthermore, the entry into the EHV Cables segment will aid revenues in the medium to long term. The management has set a revenue target of Rs 20,000 crore by FY26, led by faster and more profitable growth in the B2C segments and industry-leading growth in the B2C business,” it added.
Federal Bank | Buy | Target Price: Rs 170 | Current Price: Rs 128.60 | Upside: 32%
The brokerage said the bank is cautiously building a loan mix toward high-rated corporate and retail loans. The bank’s liability franchise remains strong with CASA plus Retail TD of over 90% and one of the highest Liquidity Coverage Ratios (LCR) among banks. Restructuring levels are also under control.
It added that the management has revised its FY23E RoA guidance upwards to 1.25+% and another 10bps improvement in FY24E, driven by lower slippages, benign credit costs, and a well-managed cost structure.
Ashok Leyland | Buy | Target Price: Rs 175 | Current Price: Rs 146.65 | Upside: 19%
Axis Securities noted that Ashok Leyland is targeting market share gains in its LCV and ICV business with the launch of superior products and expected foray into the electric LCV segment by Jun’23. With improved profitability (RM softening), market share gains (increased demand), new and superior product offerings in the pipeline to cater to growing IC and EV demand; and a focus on better services, AL remains well-positioned to benefit from the CV upcycle, it said.
Gland Pharma | Buy | Target Price: Rs 1,500 | Current Price: Rs 1384.10 | Upside: 8%
“Gland has kept a constant focus on establishing a strong portfolio of complex injectables. It is expanding its capabilities in peptides, long-acting injectables, suspensions, and
hormonal products with new delivery systems such as pens and cartridges. We expect revenue and PAT CAGR of 7% and 10% respectively over FY23-FY25E,” said the brokerage firm.
Disclaimer
The content in the story is for information purposes only and does not represent the views of Business Today. Investors should consult their financial advisors before taking any position