A target price is an analyst’s projection for the future price of a stock, which the analyst believes stock at a reasonable price. Based on the company’s previous achievements as well as future goals and strategy. A lower price target, on the other hand, may indicate that the analyst believes the stock will fall in value.
Here are two stocks with an upside up to 23%
Sunteck Realty Ltd.
Sunteck Realty Limited is engaged in real estate and construction of residential projects mainly focused on developing premium residential and commercial properties across the Mumbai Metropolitan Region (MMR).
At 12:15 p.m., on the National Stock Exchange, Sunteck Realty Ltd shares were trading at Rs 470.90, up 4.51 percent from the previous close.
The company’s shares have delivered returns of 57 percent in six months and 17 percent in a year.
The company’s revenue decreased by 51 percent year on year, from Rs 143 crore in Q1FY23 to Rs 70 crore in Q1FY24. During the same time period, net profit has decreased from Rs 22 crore to a loss of Rs 6 crore.
Jefferies has initiated a ‘buy’ rating on Sunteck Realty with a target price of Rs 555 per share, up from Rs 415 per share earlier, representing an upside potential of up to 23%.
The rationale behind providing such a recommendation is
According to Jefferies, IFC, and Sunteck Realty collaborating to develop a joint platform with a total investment of up to Rs 750 crore will offer a significant boost to the company’s medium to long-term growth potential.
Analysts anticipate Sunteck to benefit from the residential upcycle. They anticipate that development business pre-sales will increase at a CAGR of more than 20 percent between FY23 and FY26.
Following the national government’s restoration of the interest subsidy component of the government’s PM Awas Yojana or Housing for All (Urban) plan, the Analyst expects an increase in home loan applicants which might increase Sunteck’s portfolio in an affordable segment that accounts for more than 75% of the company’s portfolio.
KPIT Technologies Ltd
KPIT is a global technology business that provides embedded software and product engineering services to automotive companies.
At 12:12 p.m., on the National Stock Exchange, KPIT Technologies Ltd shares were trading at Rs 1,213.50 a share, up 4.12 percent from the previous close.
On Wednesday, KPIT Tech shares rose nearly 6% to an all-time high, driven by Goldman Sachs’ positive outlook. The company’s shares have delivered returns of 45 percent in six months and 88 percent in a year.
The company’s revenue has gained by 60 percent yearly, from Rs 685 crore in Q1FY23 to Rs 1,097 crore in Q1FY24.during same period, the company’s net profit has increased by 54 percent from Rs 87 crore to Rs 134 crore.
Goldman Sachs has raised a ‘buy’ rating on KPIT Technologies Ltd with a target price of Rs 1,420 per share from Rs 1,270 per share, representing an upside potential of up to 22%.
Written by Omkar Chitnis
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