Federal Bank, Transport Corporation of India, NBCC are on the radar of Geojit Financial Services
Geojit Financial Services recommends the following stocks:
Rating: Buy CMP: Rs113 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 ~Rs 77,000cr.
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 percent CAGR in earnings over FY17-19E.
Rating: Buy CMP: Rs264 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 Rs 320 and maintain Buy rating.
Rating: Accumulate CMP: Rs214 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 5 years. Order inflow guidance of Rs 25,000cr for FY18E provides a rosy picture. Execution from large redevelopment will improve revenue growth from H2FY18E. We factor earnings to grow at 42 percent CAGR over FY17-19E. We NBCC upgrade to Accumulate from Hold with a target price of Rs 227.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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