Tech Mahindra may move to Rs 1925: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Apollo Hospitals is in a clear uptrend, the healthcare industry is expected to touch USD 280 billion in 2020 from USD 80 billion right now. Apollo Hospitals did post a good set of numbers in Q2. Again going by the management commentary, the capex plans Rs 2,500-3,000 crore to and plans to lay out around 2,000-2,200 beds and that augurs well for the company. Another kicker for the company will be the medical tourism development and any developments that takes place which is pharmacy unit. So one can buy Apollo Hospitals from the current levels for a target of Rs 965 keeping a stoploss at Rs 920."

"One can select Tech Mahindra from the IT pack. Going forward the non-BT revenues is something that the management is focusing upon and clearly that is being shown in the value wins of USD 50 million or more where a number of clients have gone to 10 from 7. Our own expectations are 14 percent increase in USD terms and 22 percent increase in rupee terms leading to a 20 percent growth impact. So one can look at Tech Mahindra with a target of Rs 1,925 keeping a stoploss at Rs 1,832," he said

"From the midcap pharmaceutical space, one may pick Divis Laboratories. Clearly, this stock has underperformed for the major part of last year but going ahead our expectations are that if there is a revenue growth of 20 percent and EPS and EBITDA growth of 25 percent going forward, EBITDA margins as per the management commentary should stay between 38 percent and 40 percent. The capacity utilisation at its new SEZ should improve going forward and the power shortage issue has been sorted out. So one can look at Divis Labs from the current levels for a target of Rs 1,260 keeping a stoploss at Rs 1,190."