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Geojit bets on these large caps for an upside upto 38%

Gail India, Dr Reddy's Laboratories, HDFC, Vedanta, UPL, Axis Bank, IndusInd Bank and Kotak Mahindra Bank are among the largecap stocks, in which broking house Geojit expects up to 38 percent upside.

November 10, 2021 / 10:08 AM IST
Market ended flat amid volatility amid profit booking seen in the banking, FMCG and metal names, however buying in the mid, smallcap with auto and PSU banks limit the downside. Geojit picked these largecap stocks which can give 12-38 upside.
Market ended flat amid volatility amid profit booking seen in the banking, FMCG and metal names, however buying in the mid, smallcap with auto and PSU banks limit the downside. Geojit picked these largecap stocks which can give 12-38 upside.
Kotak Mahindra Bank | Rating: Buy | LTP: Rs | Target: Rs 2,353 | Return: percent. Company is expected to perform much better in the coming quarters, on the back of continued growth in interest income revenue and efficiency in operating profit with a potential to grow given a strong business infrastructure.
Kotak Mahindra Bank | Rating: Buy | LTP: Rs 2,097 | Target: Rs 2,353 | Return: 12 percent. Company is expected to perform much better in the coming quarters, on the back of continued growth in interest income revenue and efficiency in operating profit with a potential to grow given a strong business infrastructure.
IndusInd Bank | Rating: Buy | LTP: Rs | Target: Rs 1,352 | Return: percent. Increase in deposits with low cost of deposits is expected to enhance the yield on advances in the coming quarters. The bank is well positioned to cover any loan losses and keep the balance sheet intact. With collections returning to pre-covid levels, we remain positive on the stock.
IndusInd Bank | Rating: Buy | LTP: Rs 1,068 | Target: Rs 1,352 | Return: 26 percent. Increase in deposits with low cost of deposits is expected to enhance the yield on advances in the coming quarters. The bank is well positioned to cover any loan losses and keep the balance sheet intact. With collections returning to pre-covid levels, we remain positive on the stock.
Axis Bank
Axis Bank | Rating: Buy | LTP: Rs 745 | Target: Rs 889 | Return: 19 percent. The quarter saw weak operational performance and stressed margins due to increase in opex. The proposed change in the product mix is expected to reduce the operational costs and strong granular deposits is expected to aid loan growth. We remain positive on the stock as the bank witness strong collections and improved asset quality.
HDFC | Rating: Buy | LTP: Rs | Target: Rs 3,355 | Return: percent. The quarter saw a sharp recovery from 2nd wave of COVID 19 in terms of collections and disbursements in the individual segments. Asset quality remains strong in both the individual and non-individual segments due to excellent recoveries. We expect the margins to remain stable as not much changes in the base rate is expected in the near future.
HDFC | Rating: Buy | LTP: Rs 2,940 | Target: Rs 3,355 | Return: 14 percent. The quarter saw a sharp recovery from 2nd wave of COVID 19 in terms of collections and disbursements in the individual segments. Asset quality remains strong in both the individual and non-individual segments due to excellent recoveries. We expect the margins to remain stable as not much changes in the base rate is expected in the near future.
Vedanta | Rating: Buy | LTP: Rs | Target: Rs 374 | Return: percent. The company posted the highest-ever quarterly revenue and EBITDA in Q2FY22 due to a spike in demand, increase in production activities, and recovery in prices. The long-term outlook remains positive as the company is focusing on ramping up production across all the business verticals. It is also well positioned to benefit from the favorable regulatory environment and gain operational efficiencies through the adoption of digitalization and technology.
Vedanta | Rating: Buy | LTP: Rs 318 | Target: Rs 374 | Return: 17 percent. The company posted the highest-ever quarterly revenue and EBITDA in Q2FY22 due to a spike in demand, increase in production activities, and recovery in prices. The long-term outlook remains positive as the company is focusing on ramping up production across all the business verticals. It is also well positioned to benefit from the favorable regulatory environment and gain operational efficiencies through the adoption of digitalization and technology.
UPL | Rating: Buy | LTP: Rs | Target: Rs 875 | Return: percent. Although the margins remained flat this quarter, it was mainly due to the regional mix, led by Brazil’s higher share which contributed to low margin business. But the increasing volume growth driven by favorable price realization indicates that the demand is normalizing compared to last year, which is expected to continue momentum in the coming quarters.
UPL | Rating: Buy | LTP: Rs 746 | Target: Rs 875 | Return: 17 percent. Although the margins remained flat this quarter, it was mainly due to the regional mix, led by Brazil’s higher share which contributed to low margin business. But the increasing volume growth driven by favorable price realization indicates that the demand is normalizing compared to last year, which is expected to continue momentum in the coming quarters.
Gail India | Rating: Buy | LTP: Rs | Target: Rs 208 | Return: percent. Company recently received the first shipment under its long-term deal with Gazprom for LNG, with prices that are cheaper than other deals currently in place with foreign sources. With a good monsoon for the year, demand from fertilizer manufacturers is expected to remain high in the coming months. With domestic retail demand also on the rise, we expect GAIL to deliver significant performance in the coming quarters. Dr Reddy's Laboratories | Rating: Buy | LTP: Rs | Target: Rs 5,437 | Return: percent. Dr. Reddy is expected to fare much better backed by continued growth in revenue from COVID portfolio, contribution from new product launches and increase in sales price from current products. We expect the earnings to grow at a healthy 23% CAGR over FY21-23E.
Gail India | Rating: Buy | LTP: Rs 150 | Target: Rs 208 | Return: 38 percent. Company recently received the first shipment under its long-term deal with Gazprom for LNG, with prices that are cheaper than other deals currently in place with foreign sources. With a good monsoon for the year, demand from fertilizer manufacturers is expected to remain high in the coming months. With domestic retail demand also on the rise, we expect GAIL to deliver significant performance in the coming quarters.
Dr Reddy's Laboratories | Rating: Buy | LTP: Rs | Target: Rs 5,437 | Return: percent. Dr. Reddy is expected to fare much better backed by continued growth in revenue from COVID portfolio, contribution from new product launches and increase in sales price from current products. We expect the earnings to grow at a healthy 23% CAGR over FY21-23E.
Dr Reddy's Laboratories | Rating: Buy | LTP: Rs 4,791 | Target: Rs 5,437 | Return: 13 percent. Dr. Reddy is expected to fare much better backed by continued growth in revenue from COVID portfolio, contribution from new product launches and increase in sales price from current products. We expect the earnings to grow at a healthy 23% CAGR over FY21-23E.
Rakesh Patil
first published: Nov 10, 2021 10:08 am

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