Upside potential refers to the anticipated positive movement in the value of an investment. It represents the potential gain or profit an investor can achieve.
Evaluating upside potential involves analyzing factors such as market trends, financial performance, and external influences to estimate the likelihood of a favorable increase in investment value.
NTPC
NTPC Limited is an Indian power generation corporation. The company’s primary business is generating and selling bulk power to state power utilities. Its parts are Generation and Others. The generating section generates and sells bulk power to state power utilities.
With a market capitalization of Rs 3.40 lakh crore, the shares were trading at Rs 351.30 per share, decreasing around 0.18 percent as compared to the previous closing price of Rs 351.95 apiece.
Sharekhan, one of the well-known brokerages in India, gave a ‘Buy’ call on the Power stock with a target price of Rs 425 apiece indicating a potential upside of 21 percent from Monday’s price of Rs 351.30 per share.
According to the brokerage, NTPC expects to raise its renewable energy capacity to 20GW FY27E, representing a 7x increase over its existing RE capacity of 3.3 GW.
The business has 7.8 GW of RE projects under development and 11.6 GW in various phases of planning. The additional RE capacity would result in a capitalization of Rs. 85000-90000 crore over the following three years, up to FY26.
Looking into NTPC Ltd, the company’s revenue decreased by 4 percent, from Rs 44,602 crore in Q3FY23 to Rs 42,820 crore in Q3FY24. During the same period, net profit grew by 7 percent, from Rs 4,854 crore to Rs 5,209 crore.
Mahindra & Mahindra Ltd
Mahindra & Mahindra Ltd is one of India’s most diverse vehicle companies, offering 2- and 3-wheelers, PVs, CVs, tractors, and earthmovers. It also has a foothold in financial services, auto components, hotels, infrastructure, retail, and logistics, among other areas.
With a market capitalization of Rs 2.35 lakh crore, the shares were trading at Rs 1,894.80 per share, decreasing around 0.08 percent as compared to the previous closing price of Rs 1,896.25 apiece.
HSBC, one of the well-known international brokerages, gave a ‘Buy’ call on the automobile stock with a target price of Rs 2,300 apiece, indicating a potential upside of 21 percent from Monday’s price of Rs 1,894.80 per share.
According to the brokerage, if Mahindra & Mahindra demerged its farm & auto business, value unlocking may be significant for investors, and operationally, the business continues to perform well despite upside risks from tractor demand. The company’s SUV releases continue to be successful in FY24.
Looking into Mahindra & Mahindra Ltd, the company’s revenue increased by 15 percent, from Rs 30,621 crore in Q3FY23 to Rs 35,299 crore in Q3FY24. During the same period, net profit declined by 0.5 percent, from Rs 2,994 crore to Rs 2,977 crore.
Written by:- Abhishek Singh
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.
