A target price is an analyst’s projection for the future price of a stock, which the analyst believes is at a reasonable price. Based on the company’s previous achievements as well as future goals and strategies, A lower price target, on the other hand, may indicate that the analyst believes the stock will fall in value.
Here are two large-cap stocks with an upside of 19%
Grasim Industries Ltd
On Friday, the shares of the leading producer of diversified chemicals and fabrics rose 2 percent to ₹2,243.25 per share. Jefferies gave an upside of 19%.
Grasim Industries Ltd. shares have gained a return of 22% in the last six months and 39% in a year. The company has a market value of ₹1,46,348 crore.
The company’s revenue has increased 11 percent year on year, from ₹28,638 crore in Q3FY23 to ₹31,965 crore in Q3FY24. During the same period, net profit has also increased by 41 percent, from ₹4,455 crore to ₹ 2,603 crore.
The company’s chemicals revenue declined by 24% YoY in H1FY24, primarily due to a decline in caustic soda, while specialty chemicals performance improved in H1FY24 with an increase in demand from the wind segment.
Grasim Industries Limited is the Aditya Birla group’s flagship firm, and it is one of India’s largest private sector enterprises. It is a market leader in the chlor-alkali industry and one of India’s top caustic soda manufacturers. It is India’s major global manufacturer of viscose, diversified chemicals, linen yarn, and fabrics.
Grasim is a prominent producer of caustic soda and epoxy polymers & curing agents in and the company is diversified in the business of agrochemicals, water treatment solutions, food & feed, and plastic additives through chlorine derivatives.
Jefferies gave Grasim Industries Ltd. a target of ₹2,600 per share, representing an upside of 19 percent from Friday’s trading price of ₹2,191 per share.
The brokerage company is eyeing the second spot in the paints market, after the launch of Birla Opus Paints, other companies such as JSW Paints and Astral are consistently spending around 15-20 percent on marketing to increase their market share and their presence.
The company has planned a capex of ₹ 10,000 crore for capital expenditure in the paints business, demonstrating its proactive efforts to establish a strong presence in the highly competitive paint market. Jefferies said.
Samvardhana Motherson International Ltd
On Friday, the shares of one of the largest automotive OEM manufacturers rose 2 percent to ₹116.25 per share. Morgan Stanley gave an upside of 16%.
Samvardhana Motherson International shares have gained a return of 22% in the last six months and 40% in a year. The company has a market value of ₹77,726 crores.
The company’s revenue has increased 26 percent year on year, from ₹20,267 crore in Q3FY23 to ₹25,698 crore in Q3FY24. During the same period, net profit has also increased by 26 percent, from ₹501 crore to ₹633 crore.
Samvardhana Motherson International Limited (SAMIL) is one of the largest and fastest-growing automotive OEM suppliers in the world. It is a diversified global manufacturing expert and is one of the top 25 global automotive suppliers.
The company has a 24 percent global market share in the manufacture of exterior mirrors for passenger cars, commercial vehicles, and heavy trucks and is a leading specialist in the automotive industry for camera-based sensing systems.
Morgan Stanley has maintained an ‘overweight’ rating on Samvardhana Motherson International Ltd with a target of ₹133, representing an upside of 16 percent from Friday’s trading price of ₹115 per share.
The brokerage stated that the company’s growth is anticipated to be propelled by the increasing market share of premium vehicles in the near future. Additionally, the significant contribution of exports, accounting for 22% of the company’s revenue, is expected to serve as a key driver for overall growth.
The brokerage notes growing interest in the company, particularly from sectors like aerospace and defence. Additionally, peer guidance indicates potential margin expansion, with Q3 core income surpassing expectations.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. 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.
