The broader indices on Wednesday saw a bull run. The BSE Sensex closed 616 points or 1.16% higher at 53,750. On the other hand, NSE Nifty 50 index closed 178 points or 1.13% higher at 15,989.
Here are two bluechip stocks on which the analysts are bullish after they reported their Q1 numbers for the Financial year 2022-23 which can give a huge upside.
Bajaj Finance Ltd
Bajaj Finance Ltd is one of the largest Non- Banking Financial institutions (NBFCs) in India. It has a diversified lending portfolio across retail, SME, and commercial customers
The stock price went up by 4.75% in Wednesday’s trading session and closed at Rs 5,930 levels. In the last five days, the share price has gained approximately 8%. However, so far this year the stock has shed approximately 17.86% YTD.
Research firm Morgan Stanley maintains ‘overweight’ on the shares of Bajaj Finance with a target price of Rs 8,000 which represents an upside of 36%.
The brokerage house noted that Bajaj Finance reported healthy core assets under management growth, and the highest ever customer acquisition in Q1FY23.
In Q1FY23, the company recorded the highest ever quarterly increase in its customer franchise of 2.7 million. The new loans booked during the period were 7.4 million as compared to 4.6 million a year back.
The core assets under management (AUM) of the company stood at approximately Rs 2,04,000 crore in this quarter as compared to Rs 1,56,115 crore as of June 30, 2021, which is a year-on-year growth of 31 per cent.
In Q4FY22, the NBFC reported a consolidated net profit of Rs 2,419.51 crore, up 79.67 per cent compared to Rs 1,346.64 crore in the corresponding quarter last year. Its net interest income (NII) increased by 30 per cent to Rs 6,068 crore from Rs 4,659 crore a year earlier.
Marico Limited
Marico Limited is one of India’s leading consumer goods companies operating in global beauty and wellness categories. It has a presence in more than 25 countries across the globe. In fact, 95% of the company’s brands are leading players in their market.
The stock gained 1.687% on Wednesday’s trading session and closed at Rs 500.50 levels. In the last five days, the share price has spiked by approximately 4.36%. So far this year, the stock hasn’t shown much momentum and is down by 2.65% YTD.
International broking firm Citi has given a ‘Buy’ rating for the stock with a target price of Rs 595 per share which represents an upside of 21%.
“Marico’s gross margin remains strong but the demand in India continues to soften. The brokerage expects numbers to be aided by the company’s go-to-market initiative, and the company is also foraying into food and digital-first brands.”
In Q1FY23, its volumes declined in the mid-single digits. The performance was particularly dragged by a sharp drop in Saffola Oils. Excluding Saffola Oils. Parachute Coconut Oil recorded a minor volume decline.
Their foods business also saw a slow quarter and there was a sharp decline in immunity-led categories like honey, among others. Premium personal care, however, posted robust growth across all segments of the portfolio.
In Q4FY22, the company posted a 13.21 per cent rise in consolidated net profit to Rs 257 crore from Rs 227 crore. Its revenue from operations rose 7.40 per cent to Rs 2,161 crore during the quarter, against Rs 2,012 crore a year ago.
Written By – Anoushka Roy
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