“Markets inched further lower and lost over half a percent, in absence of any favorable cues. The first half was dull however pressure in the index majors changed the tone and pushed the Nifty index below the 17,000 mark. The fall was widespread wherein metal, realty and energy majors felt the maximum heat. Meanwhile, the broader indices underperformed and shed in the range of 1%-2%.
The recent fall has faded hopes of sustained recovery and we might again end up seeing range-bound moves in the index. Needless to say, the major support is intact at 16800 in the Nifty. We thus reiterate our view to limit positions and maintain positions on both sides”.
Ajit Mishra, VP – Technical Research, Religare Broking
Despite the negative intent represented by the stock markets, listed below are 8 fundamentally strong companies combating the environment and brokerages providing targets with good upside potentials, the highest being an upside of 78 percent.
Phoenix Mills Ltd
Phoenix Mills Ltd is a real estate development company operating in India. The group’s development strategy includes converting land underlying abandoned mills into a modern, multi-use, integrated property. The group is involved in all aspects of development, including planning, construction, and marketing, as well as management, maintenance, and sales of the complete development.
Motilal Oswal has a ‘Buy’ call on Phoenix Mills Ltd with a target price of Rs 1,700 per share which represents an upside of 33 percent from the current levels of Rs 1,280.
Nazara Technologies Ltd
Nazara Technologies Ltd is a mobile game company in India. The company’s segment includes Telco subscription; Gamified early learning; Freemium; eSports and Real money gaming. It generates maximum revenue from the eSports segment. Geographically, it derives a majority of its revenue from Asia-Pacific.
ICICI Securities Ltd has a ‘Buy’ call on Nazara Technologies Ltd with a target price of Rs 700 per share which represents an upside of 36 percent from the current levels of Rs 514.
Eris Lifesciences Ltd
Eris Lifesciences Ltd is an India-based company engaged in the manufacturing and sale of branded pharmaceutical formulations. It focuses on Lifestyle therapies such as Diabetes Care, Cardiac Care, Nutrition, Central Nervous System, and others. The company operates in a single segment which is pharmaceuticals. Some of its brands include Glimisave, Cyblex, Eritel, Atorsave and Crevast.
Prabhudas Lilladhar has a ‘Buy’ call on Eris Lifesciences Ltd with a target price of Rs 780 per share which represents an upside of 37 percent from the current levels of Rs 571.
Avenue Supermarts Ltd
Avenue Supermarts Ltd is an India-based company engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart. It provides products under the categories of Foods, Non-Foods (FMCG) and General Merchandise and Apparel. All the business operations of the company are principally carried out in India
Prabhudas Lilladhar has a ‘Buy’ call on Avenue Supermarts Ltd with a target price of Rs 4,699 per share which represents an upside of 40 percent from the current levels of Rs 3,362.
State Bank of India
The State Bank of India (SBI) is an Indian multinational, public sector banking and financial services statutory body. State Bank of India is a government corporation statutory body headquartered in Mumbai, Maharashtra. SBI serves its customers through mass banking, retail banking, commercial banking and operations, agricultural or rural banking, forex and technology banking.
Motilal Oswal has a ‘Buy’ call on State Bank of India with a target price of Rs 725 per share which represents an upside of 43 percent from the current levels of Rs 506.
Fusion Micro Finance Ltd
Fusion Micro Finance Ltd is engaged in micro finance lending activities, providing financial services to poor women in India who are organized as Joint Liability Groups (JLGs). The company provides small value collateral-free loans. Apart from micro finance lending, the company also has lending to MSME enterprises. It uses its distribution channel to provide other financial products and services to the members relate to providing loans to the members for the purchase of certain productivity-enhancing products such as mobile handsets, and bicycles.
ICICI Securities Ltd has a ‘Buy’ call on Fusion Micro Finance Ltd with a target price of Rs 600 per share which represents an upside of 54 percent from the current levels of Rs 390.
Century Plyboards (India) Ltd
Century Plyboards (India) Ltd produces and sells plywood, wooden panels, and other wood products in various segments based on product and service. The plywood segment, which generates the majority of revenue, sells plywood and other wood products under the Centuryply brand. Further, it is also involved in MDF, Plain Particle Board and other segments. Century Plyboards sells its products to dealers, distributors, and retailers. The vast majority of revenue comes from India.
ICICI Securities Ltd has a ‘Buy’ call on Century Plyboards (India) Ltd with a target price of Rs 758 per share which represents an upside of 67 percent from the current levels of Rs 455.
Lemon Tree Hotels Ltd
Lemon Tree Hotels Ltd owns and operates a chain of business and leisure hotels in India. The company operates its hotels under the Lemon Tree Premier, Lemon Tree Hotels, and Redfox Hotels brands.
ICICI Securities Ltd has a ‘Buy’ call on Lemon Tree Hotels Ltd with a target price of Rs 132 per share which represents an upside of 78 percent from the current levels of Rs 74.
Written by Amit Madnani
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