These are analysts’ most-loved stocks on Dalal Street: Own any?
At the top of the list is private lender ICICI Bank, which is among the world’s most widely-tracked stocks. The bank has 28 ‘strong buy’ ratings – the highest for any Indian company, on the publicly available Reuters Eikon database. It also has 17...
Real estate developers Brigade Enterprises and Sobha enjoy 9 ‘strong buy’ ratings each. While Brigade has 2 ‘buy’ ratings, Sobha has 10, despite the challenging Covid-19-tainted environment.
Mumbai: Analysts have been flagging stretched valuations, especially in the largecap pack, after the relentless rally on the back of a gush of liquidity, especially from foreign funds.
At such a juncture too, a host of companies have no ‘sell’ or ‘hold’ ratings, and analysts who track them all have ‘buy’ ratings.
These are analysts’ most-loved companies on Dalal Street. They rank among the top 100 in terms of market capitalization, and have only ‘buy’ or ‘strong buy’ ratings as on date.
At the top of the list is private lender ICICI Bank, which is among the world’s most widely-tracked stocks. The bank has 28 ‘strong buy’ ratings – the highest for any Indian company, on the publicly available Reuters Eikon database. It also has 17 ‘buy’ ratings.
On August 27, IDBI Capital initiated coverage on the stock with a ‘buy’ rating, saying ICICI Bank is well prepared among peers to weather the Covid-19 storm highest provision coverage ratio (PCR) at 75 per cent, highest Covid-19 provisions and higher home loan portfolio.
“Strong liability franchise and higher Tier I capital ratio will advantage the bank when the economic growth recovers. We expect credit growth for the bank to remain higher than the banking industry led by market share gain,” the brokerage said in a note.
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Next on the list is aluminum producer Hindalco Industries, even as the company posted its first loss in 18 quarters in the three months ended June. The stock had 13 ‘strong buy’ and 8 ‘buy’ ratings.
“Results were below our estimates, driven by higher-than-anticipated costs in both the domestic business and Novelis. However, the outlook for Aluminum remains positive on strong growth outlook in China and consequent recovery in aluminum prices,” Emkay Global said in an August 18 note, while maintaining its ‘buy’ rating on the stock. It also raised its target price to Rs 225 from Rs 187 earlier.
For roads and highways developer PNC Infratech, 13 analysts are recommending a ‘strong buy’, while 7 suggest ‘buy’ ratings.
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On August 31, Prabhudas Lilladher maintained a ‘buy’ rating on the stock, and raised its target price to Rs 219 from Rs 205 earlier, saying the company was on a strong footing.
The brokerage said PNC Infratech remains one of its preferred picks in road infra space given its healthy order book, stellar execution pace with most projects getting completed within stipulated time, stable Ebitda margins and comfortable debt-equity ratio of 0.13 times.
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Adani Ports is India’s largest private multi-port operator, and the stock has 11 ‘strong buy’ and 15 ‘buy’ ratings. In a note on September 3, Jefferies said Adani Ports has the balance sheet strength to acquire and bid for incremental assets. The brokerage has a ‘buy’ rating on the stock.
“We believe Adani Ports is well placed to enhance shareholder value from distress asset sales in the current environment,” Jefferies analysts said.
7 stocks that brokerages say can deliver good returns in 2-3 weeks
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A late rally in select index heavyweights drove Nifty50 into the positive territory on Monday, even though the index failed to close above 11,400 levels. Analysts said the index may stay rangebound with a positive bias in the coming sessions. "We recommend avoiding aggressive shorts unless Nifty slips below the 11,250-11,225 zone. One should remain stock specific, make selective buying and protect profits at higher levels," said Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services.
Here are 7 stocks that can offer solid returns over the next 2-3 weeks:
A late rally in select index heavyweights drove Nifty50 into the positive territory on Monday, even though the index failed to close above 11,400 levels. Analysts said the index may stay rangebound w..
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After a strong uptrend rally from Rs 550 to Rs 715, the stock is hovering between Rs 675730 price ranges. However, the medium term texture of the stock is very strong and higher bottom formation on daily and weekly charts indicate that a strong possibility of another uptrend wave cannot be ruled out. Now, stock is consolidating near the Rs 700 support zone and the short term texture suggests a strong possibility of further uptrend from current levels. Unless it is trading below Rs 675, positional traders can retain an optimistic stance and look for a target of Rs 750. Fresh buying can be considered now and on dips, if any, between Rs 701 and Rs 685 levels with a stop loss below Rs 675. [Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities]
After a strong uptrend rally from Rs 550 to Rs 715, the stock is hovering between Rs 675730 price ranges. However, the medium term texture of the stock is very strong and higher bottom formation on d..
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The stock has witnessed a price correction of more than 10 per cent from its previous resistance level in the last five days. Currently, the stock is trading near 20-day SMA and on daily charts, the stock is trading near an important retracement level that indicates high chances of trend reversal in the short term. In addition, on weekly and daily charts, the stock has maintained a higher bottom series pattern that also helped positional traders to take positive stance near crucial support levels. [Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities]
The stock has witnessed a price correction of more than 10 per cent from its previous resistance level in the last five days. Currently, the stock is trading near 20-day SMA and on daily charts, the ..
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After a strong uptrend rally from Rs 2,700 to Rs 3,150, the stock is witnessing profit booking near Rs 3,150 level. However, the medium-term structure of the stock is still on the positive side. Currently, the stock is trading near an important retracement level with modest volume activity, which indicates a strong possibility of a fresh uptrend wave from the current levels. In addition, the stock is trading near the 200-day SMA and the momentum indicators suggest high chances of sharp trend reversal in the short run. For the next few trading sessions, Rs 3,090 should be the sacrosanct level for the traders. Trading above the same, we can expect an uptrend continuation wave of up to Rs 3,090. [Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities]
After a strong uptrend rally from Rs 2,700 to Rs 3,150, the stock is witnessing profit booking near Rs 3,150 level. However, the medium-term structure of the stock is still on the positive side. C..
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Stock price has broken out from the last one-month consolidation with sharp rise in volumes to close at all-time high. Stock price is forming bullish higher tops higher bottom on the daily and weekly chart. Daily RSI Oscillators is placed above 70 levels indicating bullish set up for the stocks. +DI is placed above the -DI while ADX line is placed above 20, indicating momentum in the uptrend. Therefore, we recommend buying Granules at CMP of Rs 347 and average at Rs 340 for the target of 380, keeping the stop loss at Rs 330. [Nandish Shah, Technical Research Analyst, HDFC Securities]
Stock price has broken out from the last one-month consolidation with sharp rise in volumes to close at all-time high. Stock price is forming bullish higher tops higher bottom on the daily and weekly..
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After a consolidation for the last few days, the stock price resumed its uptrend to close at an all-time high level with higher volumes. Stock price is forming bullish higher tops higher bottom on the daily chart. +DI is placed above the -DI while ADX line is placed around 50 indicating momentum in the uptrend. Oscillators like RSI and MFI are showing strength in the stock. Therefore, we recommend buying the stock at CMP of Rs 907 and average at Rs 880 for the target of Rs 980, keeping the stop loss at Rs 860. [Nandish Shah, Technical Research Analyst, HDFC Securities]
After a consolidation for the last few days, the stock price resumed its uptrend to close at an all-time high level with higher volumes. Stock price is forming bullish higher tops higher bottom on th..
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The stock has witnessed a decent correction and has indicated signs of bottoming out near Rs 46 levels and we anticipate a reversal. The RSI indicator has consolidated and is well placed and is ready for a trend reversal with the bias improving. With the chart looking good, we suggest to buy and accumulate this stock for an upside target of Rs 65-70 levels, keeping the stop loss of Rs 44. [Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher]
The stock has witnessed a decent correction and has indicated signs of bottoming out near Rs 46 levels and we anticipate a reversal. The RSI indicator has consolidated and is well placed and is ready..
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The stock overall is in a rising trend and currently has taken support near Rs 500 levels to indicate a reversal and improve the bias. The RSI indicator is also well placed and has indicated a trend reversal recently. With the chart looking good, we suggest to buy and accumulate this stock for an upside target of Rs 600 keeping the stop loss of Rs 485. [Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher]
The stock overall is in a rising trend and currently has taken support near Rs 500 levels to indicate a reversal and improve the bias. The RSI indicator is also well placed and has indicated a trend ..
Real estate developers Brigade Enterprises and Sobha enjoy 9 ‘strong buy’ ratings each. While Brigade has 2 ‘buy’ ratings, Sobha has 10, despite the challenging Covid-19-tainted environment.
In a report on August 14, Edelweiss Securities said that RERA- (Real Estate (Regulation and Development) Act) driven consolidation is throwing up growth opportunities for organised players such as Brigade Enterprises. “However, Covid-19 is going to challenge the robustness of the business, particularly in the retail and hospitality assets. We believe the company’s ability to manage cash flows will determine the stock’s trajectory,” Edelweiss said while maintaining a ‘buy’ rating on the stock with a target price of Rs 192.
Despite the Covid-19 pandemic, Bangalore-based Sobha managed to post a profit in the quarter ended June, contrary to expectations of a loss. The company reported a net profit of Rs 6.6 crore, down 93 per cent from a year ago as sales and construction activities were stalled because of the lockdown.
In a note on August 12, HDFC Securities pointed that despite the first half of the quarter being marred by lockdown-related issues, Sobha’s total collections for the quarter stood at Rs 550 crore, which was commendable, and sales activity has picked up in June and trend is flowing into the September quarter, with the company indicating better times. The brokerage maintained a ‘buy’ rating on the stock, with a price target of Rs 348.
