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LIC Housing Finance and Tata Motors among bets by Geojit for up to 26% upside

After the recent rally, as the market is witnessing consolidation Geojit is bullish on these 6 mid, largecap stocks

February 11, 2021 / 11:32 AM IST
sensex
In a highly volatile session, the market ended with marginal losses on February 10. After the recent rally, as the market is witnessing consolidation Geojit is bullish on these 6 mid, largecap stocks with an upside of 13-26 percent calculated from the closing of February 10, 2021.
LIC Housing Finance | Brokerage: | Rating: Buy | LTP: Rs | Target: Rs 515 | Upside: percent. In 2HFY20, economy started to pick up and it is expected to improve in upcoming quarters as well. The reduction in provisional requirements supported by increase in demand in real estate sector, reduction in stamp duty and home loan rates might boost the Company’s performance in near to medium term. Therefore, we reiterate buy rating on the stock with rolled over price target of Rs 515 at 1x FY23E BVPS.
LIC Housing Finance | Rating: Buy | LTP: Rs 439.25 | Target: Rs 515 | Upside: 17 percent. In 2HFY20, economy started to pick up and it is expected to improve in upcoming quarters as well. The reduction in provisional requirements supported by increase in demand in real estate sector, reduction in stamp duty and home loan rates might boost the Company’s performance in near to medium term. Therefore, we reiterate buy rating on the stock with rolled over price target of Rs 515 at 1x FY23E BVPS.
Tata Motors | Rating: Buy | LTP: Rs | Target: Rs 372 | Upside: percent. With a robust order pipeline, a desirable product mix coupled with strong executional capabilities, Tata Motors is well-placed among peers, and is expected to outperform the industry in terms of growth with demand on the rise. We reiterate buy rating on the stock with a revised target price of Rs 372 based on SOTP methodology.
Tata Motors | Rating: Buy | LTP: Rs 328.90 | Target: Rs 372 | Upside: 13 percent. With a robust order pipeline, a desirable product mix coupled with strong executional capabilities, Tata Motors is well-placed among peers, and is expected to outperform the industry in terms of growth with demand on the rise. We reiterate buy rating on the stock with a revised target price of Rs 372 based on SOTP methodology.
City Union Bank | Rating: Buy | LTP: Rs | Target: Rs 208 | Upside: percent. We expect the growth in advances to be driven by ECLGS and Gold Loan. Bank is expected to reach pre-covid levels of ROA and ROE by FY22. Even though provisioning is expected to remain high due to higher slippages in coming quarters, restructuring of MSME loan book will keep NPA under control. We therefore remain positive and value the stock at 2.5x FY23E Adj BVPS and recommend buy rating with a roll forward upward target price of Rs 208.
City Union Bank | Rating: Buy | LTP: Rs 164.10 | Target: Rs 208 | Upside: 26 percent. We expect the growth in advances to be driven by ECLGS and Gold Loan. Bank is expected to reach pre-covid levels of ROA and ROE by FY22. Even though provisioning is expected to remain high due to higher slippages in coming quarters, restructuring of MSME loan book will keep NPA under control. We therefore remain positive and value the stock at 2.5x FY23E Adj BVPS and recommend buy rating with a roll forward upward target price of Rs 208.
Exide Industries | Rating: Buy | LTP: Rs | Target: Rs 264 | Upside: percent. We remain positive on the long term outlook of company owing to higher acceptance of battery engineering and Exide’s foray into 3W manufacturing. On a SOTP basis, we value stock at 18x FY23EPS for Rs 234 and insurance business at 1x FY20 EV (Embedded value) Rs 30/share and upgrade rating buy with a target price of Rs 264.
Exide Industries | Rating: Buy | LTP: Rs 214.50 | Target: Rs 264 | Upside: 23 percent. We remain positive on the long term outlook of company owing to higher acceptance of battery engineering and Exide’s foray into 3W manufacturing. On a SOTP basis, we value stock at 18x FY23EPS for Rs 234 and insurance business at 1x FY20 EV (Embedded value) Rs 30/share and upgrade rating buy with a target price of Rs 264.
Tata Consumer Products | Rating: Buy | LTP: Rs | Target: Rs 684 | Upside: percent. Higher volume traction in India business, digitization across supply chain coupled with synergy benefits in upcoming period are the key growth drivers. Additionally, company is confident in navigating the margin pressure by focusing on volume and share growth. Hence, positive on the stock and upgrade rating to a buy with a roll forward target price of Rs 684 based on 48x FY23E EPS.
Tata Consumer Products | Rating: Buy | LTP: Rs 600.75 | Target: Rs 684 | Upside: 14 percent. Higher volume traction in India business, digitization across supply chain coupled with synergy benefits in upcoming period are the key growth drivers. Additionally, company is confident in navigating the margin pressure by focusing on volume and share growth. Hence, positive on the stock and upgrade rating to a buy with a roll forward target price of Rs 684 based on 48x FY23E EPS.
Vinati Organics | Rating: Buy | LTP: Rs | Target: Rs 1,539 | Upside: percent. We continue to maintain a positive outlook on the stock, given its investment in new capacities for introduction of new products, leveraging growth opportunities in existing product portfolio, strong balance sheet and healthy RoE & ROCE of 24% & 24% (avg. last 5years). The integration of VAPL is likely to add more synergies to its existing portfolio.
Vinati Organics | Rating: Buy | LTP: Rs 1,337.75 | Target: Rs 1,539 | Upside: 15 percent. We continue to maintain a positive outlook on the stock, given its investment in new capacities for introduction of new products, leveraging growth opportunities in existing product portfolio, strong balance sheet and healthy RoE & ROCE of 24% & 24% (avg. last 5years). The integration of VAPL is likely to add more synergies to its existing portfolio.
Rakesh Patil
first published: Feb 11, 2021 11:32 am

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