Synopsis:
Despite Friday’s market correction, top brokerages remain optimistic about select opportunities. Analysts have issued strong buy calls on companies across sectors, projecting substantial upside potential.
Benchmark indices ended sharply lower on Friday as profit booking weighed across the board. At close, the BSE Sensex declined 721 points or 0.88 percent to 81,463.09, while the NSE Nifty50 shed 225 points or 0.9 percent to settle at 24,837.
Despite the weak sentiment, top brokerages have maintained bullish views on select stocks, projecting strong upside from current levels. Here are six stocks that analysts believe could deliver significant returns going forward:
1. Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank Limited is a mass-market focused bank catering to the financially unserved and underserved segments across India. Originally established in 2005 as Ujjivan Financial Services Limited, the institution was founded to provide financial services to the ‘economically active poor’, a segment that was largely excluded by traditional financial institutions.
With a market capitalization of Rs. 8,825.18 crore, shares of Ujjivan Small Finance Bank opened slightly lower at Rs.45.50 and declined to an intraday low of Rs.42.90, compared to the previous close of Rs.45.71. This represents a drop of around 6.15 percent during the session.
Emkay Global Financial Services has given a ‘Buy’ call on the stock with a target price of Rs 60, implying a potential upside of nearly 38.7 percent from its closing price of Rs 43.25 on Friday.
2. Aether Industries Ltd
Incorporated in 2013, Aether Industries Limited is a specialty chemical manufacturer known for being the sole Indian supplier of several niche molecules including 4-(2-Methoxyethyl) Phenol (4MEP), 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), and Thiophene-2-Ethanol (T2E), among others.
Aether Industries, which has a market cap of Rs 10,351.32 crore, witnessed a sharp decline of nearly 4.07 percent as the stock dropped from its previous close of Rs 808.90 to hit a low of Rs 776 during the session. It had opened slightly higher at Rs 824 before reversing gains.
HDFC Securities has maintained a ‘Buy’ rating on Aether Industries with a target price of Rs 1140. This suggests a potential upside of around 46.1 percent from its Friday closing price of Rs 780.
3. ACC Ltd
ACC Limited, a member of the Adani Group and one of India’s oldest cement companies, has been in the business of manufacturing and selling cement and ready-mix concrete since 1936. The company operates manufacturing facilities across India and primarily serves the domestic market.
Shares of ACC, having a market capitalization of Rs 34,696.51 crore, declined by approximately 2.54 percent during the day. The stock opened at Rs 1,899.35 but later fell to a low of Rs 1,842.55, compared to the previous close of Rs 1,890.60, as cement counters came under pressure.
JM Financial has issued a ‘Buy’ recommendation on ACC with a target price of Rs 2543, indicating a potential upside of approximately 37.6 percent from its Friday closing price of Rs 1847.80
4. Persistent Systems Ltd
Persistent Systems offers software engineering and digital transformation services to global clients. With its own set of proprietary software frameworks and pre-built integration tools, the company works with major cloud and SaaS providers like Salesforce and AWS to modernize client operations.
Persistent Systems, with a market cap of Rs 80,528 crore, saw its stock dip around 1.12 percent from the previous closing price of Rs 5,171.25 to an intraday low of Rs 5,113.55. The stock had opened slightly higher at Rs 5,199.80 before sliding into the red later in the session.
Motilal Oswal has retained a ‘Buy’ call on Persistent Systems, setting a target price of Rs 6800 per share. This implies a potential upside of about 31.7 percent from its closing price of Rs 5161.55 on Friday.
5. One 97 Communications Ltd
Founded in 2000, One 97 Communications is the parent company of Paytm and a leader in India’s digital payment ecosystem. As of March 2021, it had over 333 million users and 21 million registered merchants using its suite of payment, financial, commerce, and cloud services.
With a market capitalization of Rs 68,131 crore, the shares opened at Rs 1,101.95 and dropped to an intraday low of Rs 1,065.60. This marked a decline of approximately 3.66 percent from the previous close of Rs 1,106.15.
Emkay has reiterated a ‘Buy’ on the stock with a target price of Rs 1350, indicating a potential upside of 26.5 percent from the closing price of Rs 1067.50.
6. KEI Industries Ltd
Founded in 1968, KEI Industries began with the manufacturing of rubber cables and has since evolved into a global wire and cable solutions provider. With a presence in over 55 countries and a strong domestic network of 30,000+ channel partners, the company is also active in the EPC segment and manufactures a wide range of EHV, MV, and LV power cables.
KEI Industries, valued at Rs 36,803 crore in market capitalization, fell around 1.88 percent intraday as its shares dropped from the previous close of Rs 3,904.85 to a low of Rs 3,831.40. The stock had opened higher at Rs 3,928.90 before witnessing mild selling pressure.
Anand Rathi has recommended a ‘Buy’ on KEI Industries with a target of Rs 4827, translating into a potential upside of 25.3 percent from its Friday closing price of Rs 3851.60.
Written by – Manan Gangwar
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