Many newly listed companies are reeling under pressure amid the volatility in the markets. The BSE Sensex closed marginally higher at 59,960 points, up 0.34% on Friday, while the Nifty was quoting at 17,787 points, up 0.28%.
Here are two stocks in which CITI sees an upside of up to 94%:
Life Insurance Corporation of India
The insurance behemoth’s shares closed at ₹ 592.65 apiece on Friday. Its shares had a muted listing at ₹872 apiece on the bourses after being issued at ₹ 949 apiece. They slid below their listing price and have fallen by 32.29% since their listing.
The government is nudging the company to tweak its product strategy in order to maximize profitability. This will help it to realize its full growth potential and yield better returns for its investors. This includes modernizing their product offerings and offering a lower dividend payout to their policyholders.
Citi is bullish on the scrip. A research report dated October 14, it has suggested a target price of ₹ 1,000, saying that LIC is ‘positioned better than mature global players’. This translates to an upside of 68.73% as compared to the current share price of ₹ 592.65.
Delhivery
Logistics unicorn Delhivery’s shares its 52-week low of ₹ 350.00. However, the shares closed at ₹ 355.00. This price is below their issue price of ₹ 487.00 and listing price of ₹ 495.2.
Its shares have fallen by 33.81% since its listing. In fact, they fell by 16.58% in the past week after the company provided a summary of its operating performance and key business and industry trends for the September quarter (Q2FY23).
Citi has a ‘buy’ recommendation on the stock, but it has reduced its target price from ₹ 740.00 to ₹ 688.00. Its shares closed at ₹ 355.00 and the revised target price suggests an upside of 93.80%.
Written by Simran Bafna
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