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3 hot stock picks from Geojit Financial Services

Federal Bank, NBCC, and Transport Corporation of India are on the radar of Geojit Financial Services

September 21, 2017 / 09:32 AM IST
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Geojit Financial Services recommends the following stocks:

Federal Bank Ltd

Rating: Buy                                  CMP: Rs120                                   TP: Rs134

Federal Bank Ltd (FB) is a mid-sized private commercial bank having a network of 1252 branches across India with a loan book size of ~Rs77,000cr.

Loan growth outlook continues to remain robust supported by maturing retail network and strong traction in mid-size corporate and retail loans. Asset quality outlook has further improved due to reduction in large risk assets. Fresh slippages are expected to reduce in the coming quarters leading to lower provisions and we expect strong 32% CAGR in earnings over FY17-19E.


Transport Corporation of India Ltd.

Rating: Buy                                  CMP: Rs288                                   TP: Rs320

Transport Corporation of India Ltd (TCI) is one of the largest integrated players in the organised logistics industry providing Freight, supply chain, warehousing solutions and shipping services.

TCI will be a key beneficiary from implementation of GST, which is expected to boost logistic players business due to increased outsourcing of logistics services. Given healthy earnings outlook we increase target P/E to 21x (20x) on standalone business and value subsidiaries at Rs12/share to arrive at SOTP target price of Rs320 and maintain Buy rating.

NBCC (India) Ltd.

Rating: Accumulate                                      CMP: Rs220                                       TP: Rs227

NBCC Ltd (NBCC) is a Navaratna Enterprise engaged in Project management consultancy (PMC), Engineering Procurement & construction (EPC) and real estate business.

Current order backlog of Rs75,000cr (12x FY17 sales) provides strong visibility for next 5yrs. Order inflow guidance of Rs25,000cr for FY18E provides a rosy picture. Execution from large redevelopment will improve revenue growth from H2FY18E. We factor earnings to grow at 42% CAGR over FY17-19E. We NBCC upgrade to Accumulate from Hold with a target price of Rs227.
first published: Sep 21, 2017 09:32 am

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