The Nifty is trading well within its long-period average P/E of ~20x FY25E EPS. We continue to stay OW on domestic cyclicals, e.g., BFSI, Industrials, Real Estate and Consumer Discretionary, and maintain UW on IT with Equal Weight on Healthcare, Automobile, Metals, O&G and Telecom
Cello World is among the best in industry. Buy for target price of Rs 1100 (34% upside): Motilal Oswal
CELLO is currently trading at 34x FY26E EPS with RoE/RoCE of 32%/39% in FY26E. We believe that the company will be able to successfully scale up new businesses and expand SKUs and distribution reach in order to evolve as a leading brand in the respective segments. We reiterate our BUY rating with a TP of INR1,100 (premised on 45x FY26E EPS)
Cables and Wires are powering the Indian growth story. Three stocks to buy by Motilal Oswal
We initiate coverage on Polycab, KEI, and RRKABEL with a BUY rating as we expect them to benefit from the favorable industry trends and report healthy earnings growth over FY24-26. We believe these companies will maintain their premium valuations. We value: Polycab at 50x FY26E EPS to arrive at our TP of INR7,500, KEI at 50x FY26E EPS to arrive at our TP of INR5,000, and RRKABEL at 40x FY26E EPS to arrive at our TP of INR2,200
Bajaj Finance is Standing the test of time – planning, execution and resilience. Buy for target price of Rs 8500: ICICI Securities
Bajaj Finance (Bajaj) is the only NBFC in India that prioritises customer ‘ownership’ over mere ‘lending’. Providing financial solutions to India’s burgeoning aspirational middle class forms the crux of Bajaj’s unique business model, which will allow the business to showcase >25% growth in AUM and RoE in the near futur
Man Infraconstruction has strategically adopted a business model with multiple streams of income. Buy for target price of Rs
We initiate coverage on Man Infraconstruction (MICL) with a BUY recommendation. Our recommendation is supported by a) Healthy project pipeline; b) Asset–light business model, and c) Strong execution capabilities. Based on our DCF valuation method, we arrive at a Target Price of Rs 270/share, implying an upside of 28% from the current levels
Puravankara is riding the growth juggernaut. Buy for target price of Rs 452 (86% upside): Yes Securities
We initiate a bullish BUY rating on Puravankara Ltd (PURVA) based on following factors: (1) Presales to grow at 20%CAGR over FY23-26E, (2) Debt and Debt Coverage well under control, (3) Strong execution track record over the decade, (4) Strong P&L recognition expected in next 5-7 years, (5) paradigm shift in focus following onboarding of new CEO
9 Trading Buys (Earnings Play) by Axis Securities for returns expectations of 5-10%
We believe the market fundamentals will be driven by “narrative” in the near term, especially in the absence of any major trigger. The market will continue to find direction based on 1) Macroeconomic developments, 2) Direction of bond yields, 3) Oil prices & dollar index, 4) Q4FY24 earning season, and 5) Pre-election cues.
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