It has been a consistent, upward journey of returns as the benchmark Nifty 50 has rallied 19.42% in the last six months. During the same period, the 30-stock BSE Sensex advanced the same registering gains of 19.40%.
As the markets trade at all-time highs, market experts are given mixed reviews. Here are four stock recommendations by leading brokerages covering 4 fundamentally strong companies.
ICICI Bank
Analysts at the leading global brokerage firm Morgan Stanely have given a ‘buy’ rating on the stock with a target price of Rs 1,250. This translates into potential gains of 38% for the investors.
Retail & wholesale banking, treasury, life insurance & other banking and allied activities. However, going forward, the banker is projected to increase its share in high-margin verticals. This will likely result in a re-rating of the stock.
The shares of ICICI Bank were trading for Rs 909 a piece during the early hours of trading on Monday. In the last 6 months, the bank’s stock has rallied and generated impressive returns of 32.5%.
Mahindra CIE Automotive
Mahindra CIE Automotive is a mid-cap auto-ancillary company with a market capitalisation of Rs 12,600 crore. The shares of the company were trading for Rs 334.55 as of 11:45 IST, up 2.43% for the day.
Domestic brokerage firm Prabhudas Lilladher has initiated a ‘buy’ call on the stock with a target price of Rs 400 per share.
This translates into a potential 20% upside for the investors. The firm added that investors should keep the stop loss at Rs 290 per share.
Mahindra CIE Automotive is a low-debt stock with a debt-to-equity ratio of 0.23 and a high promoter holding of 75%.
Bharat Forge
The second auto-components stock on this list, Bharat Forge of the Kalyani Group is another company on analysts’ radar that has the potential to generate impressive returns.
Analysts at ICICI Direct have given a ‘buy’ call on the stock of Bharat Forge with a share target price of Rs 1,150. This translates to prospective gains of 30% for the shareholders.
The rationale provided by the brokerage firm states that the stock has yet to receive a significant open interest rise. It expects a continuation of price rise considering the recent breakout.
The shares of the large-cap company were getting exchanged for Rs 883.20 as of 11:45 IST, almost flat from the previous close. The stock has returned an impressive 42% in the last six months.
Written by Vikalp Mishra
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
