As of 12th June 2024, The NSE hit a fresh record high of Rs 23,441.95 after gaining 170 points, while the BSE surged over 500 points as investors remained optimistic about India’s economic growth under Modi 3.0.
Here are a few stocks that have been given a Buy rating by India’s top brokerage companies which ensures an upside potential of up to 31 percent.
State Bank of India
State Bank of India (SBI) is an Indian Multinational PSU banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history. It was established in the year 1955.
The brokerage firm Motilal Oswal has recommended a target price of Rs 1,015 per share on the stock, with an upside potential of 21 percent from the current trading price of Rs 840 a piece.
According to the research report published by Motilal Oswal, for FY24, SBI has delivered a strong performance and has achieved new milestones in profitability where the Profit after tax (PAT ) surpassed Rs 60,000 crores.
The brokerage firm also mentions that the bank’s earning growth curve remains promising in the future and this stable growth is because of steady net interest income and controlled opex and provisions. Motilal also estimates SBI to deliver PAT of Rs 81,600 crores by FY26.
Examining the financials of SBI, On a year-on-year basis, the revenue from operations increased by 25 percent from Rs. 350,845 crores in FY22-23 to Rs 439,189 crores in FY23-24.
Additionally, The net profits of the firm increased by 20.4 percent from Rs. 57,750 crores in FY22-23 to Rs 69,543 crores in FY23-24.
Royal Orchid Hotels Ltd
Incorporated in the year 2001, the Royal Orchis Hotels is engaged in the business of operating and managing hotels and resorts along with providing related services through its portfolio of hotel properties across the country.
The brokerage firm Edelweiss (Nuvuma) has recommended a target price of Rs 477 per share on the stock, with an upside potential of 31 percent from the current trading price of Rs 364 a piece.
The brokerage firm Edelweiss (Nuvuma) has recommended an upside potential of 31 percent for Royal Orchid Hotels from its current trading price of Rs 364.7 a piece. The recommended target price for the stock is Rs 477 per share.
According to the research report published by Nuvama, They expect a 16.3% revenue CAGR over FY24–26 for Royal Orchid with an addition of over 1,833 rooms. They also expect a strong growth in in Food and beverages income due to expansion in their restaurant and banquet portfolio.
Royal Orchid Hotels also expects an Average Room Rate (ARR) growth of 5 percent YoY the upcoming fiscal year 2025.
Examining the financials of Royal Orchid Hotels, On a year-on-year basis, the revenue from operations increased by 11.3 percent from Rs. 264 crores in FY22-23 to Rs 294 crores in FY23-24. Additionally, The net profits of the firm increased by 4 percent from Rs. 49 crores in FY22-23 to Rs 51 crores in FY23-24.
Pitti Engineering Ltd
Incorporated in the year 1983, Pitti Engineering is engaged in the manufacturing of Electrical Steel Laminations, Motor Cores, Sub-Assemblies, Die-Cast Rotors, and press tools.
The brokerage firm Axis Direct has recommended a target price of Rs 1,180 per share on the stock, with an upside potential of 21 percent from the current trading price of Rs 973.8 a piece.
According to the research report published by axis direct , the management of Pitti Engineering Limited aims to achieve a 25 percent market share over the next five years with the industry expected to grow at a CAGR of 7-8 percent by FY29.
The company has announced its acquisition of Bagadia Chaitra Inds Pvt. Ltd. (BCIPL) to expand business in South India for potential growth and also an Upcoming merger with Pitti Castings.
Accordingly, the brokerage firm estimates Revenue, Operating Profit, and PAT CAGR of 32 percent,31 percent, and 35 percent respectively over FY24/26E. The company is also focusing on increasing the share of exports and value-added products, which contribute efficiently to the net profit margin.
Examining the financials of Pitti Engineering Ltd, On a year-on-year basis, the revenue from operations increased by 11.3 percent from Rs 1,100 crores in FY22-23 to Rs 1, 202 crores in FY23-24. Additionally, The net profits of the firm increased by 52.5 percent from Rs. 59 crores in FY22-23 to Rs 90 crores in FY23-24.
Written By Zahal
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.
