Bajaj Auto, M&M & Tata Motors: Here's what AK Prabhakar of IDBI Capital says on these 3 stocks
Top picks: "There are few selected sectors and stocks which will outperform the markets. But, one has to be very careful while taking positions as valuation comfort is not there," said AK Prabhakar told Business Today TV.
- Jan 4, 2024,
- Updated Jan 4, 2024 10:32 AM IST
AK Prabhakar, Head of Capital, IDBI Capital, on Thursday said markets are likely to see a roller-coaster ride in the calendar year 2024. "There are few selected sectors and stocks which will outperform the markets. But, one has to be very careful while taking positions as valuation comfort is not there," said Prabhakar told Business Today TV.
When asked to share his view on Bajaj Auto Ltd, the market expert said, "The buyback announced is going to be huge. It will be creating wealth for investors. As far as the stock price is concerned, upside would be limited from here." The stock was trading 1.33 per cent lower at Rs 6,896.50.
Bajaj Auto, in a BSE filing on Wednesday, informed that it will consider a proposal for buyback of equity shares.
Prabhakar also liked Mahindra & Mahindra (M&M) from the automobile space. "From here, 20-25 per cent return in the next 12-15 looks possible for M&M," the market veteran stated. M&M's stock was last seen trading 0.57 per cent higher at Rs 1,664.95.
The other stock which he spoke about was Tata Motors Ltd. "The automaker's total sales is almost 3 lakh crore. Once the company's margins start to come, it is going to be a huge positive for Tata Motors. We have a strong long-term view on Tata Motors and it is worth holding on to the counter," Prabhakar said. The stock was up 1.61 per cent at Rs 793.95.
Meanwhile, Indian equity benchmarks traded higher today, led by gains in technology, financials and consumer stocks. Broader market (mid- and small-cap) shares were also positive.
14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty IT, Nifty Financial Services, Nifty FMCG and Nifty Consumer Durables were outperforming the NSE platform by rising as much as 0.88 per cent, 0.76 per cent, 0.64 per cent and 0.44 per cent, respectively. Nifty Media, however, shed 0.21 per cent.
On the stock-specific front, Bajaj Finance was the top gainer in the Nifty pack as the stock jumped 3.63 per cent to trade at Rs 7,653. Bajaj Finserv, Adani Ports, NTPC and Infosys climbed up to 2.67 per cent.
In contrast, BPCL, Tata Steel, Hindalco, Bajaj Auto and Dr Reddy's Labs were among the top laggards.
The overall market breadth was positive as 2,377 shares were advancing while 630 were declining on BSE.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
Also read | Bajaj Finance shares climb 5% after Q3 update; full details
Also read | Top 5 stocks to watch on January 4, 2024: Adani Ports, Vedanta, Torrent Power and more
AK Prabhakar, Head of Capital, IDBI Capital, on Thursday said markets are likely to see a roller-coaster ride in the calendar year 2024. "There are few selected sectors and stocks which will outperform the markets. But, one has to be very careful while taking positions as valuation comfort is not there," said Prabhakar told Business Today TV.
When asked to share his view on Bajaj Auto Ltd, the market expert said, "The buyback announced is going to be huge. It will be creating wealth for investors. As far as the stock price is concerned, upside would be limited from here." The stock was trading 1.33 per cent lower at Rs 6,896.50.
Bajaj Auto, in a BSE filing on Wednesday, informed that it will consider a proposal for buyback of equity shares.
Prabhakar also liked Mahindra & Mahindra (M&M) from the automobile space. "From here, 20-25 per cent return in the next 12-15 looks possible for M&M," the market veteran stated. M&M's stock was last seen trading 0.57 per cent higher at Rs 1,664.95.
The other stock which he spoke about was Tata Motors Ltd. "The automaker's total sales is almost 3 lakh crore. Once the company's margins start to come, it is going to be a huge positive for Tata Motors. We have a strong long-term view on Tata Motors and it is worth holding on to the counter," Prabhakar said. The stock was up 1.61 per cent at Rs 793.95.
Meanwhile, Indian equity benchmarks traded higher today, led by gains in technology, financials and consumer stocks. Broader market (mid- and small-cap) shares were also positive.
14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty IT, Nifty Financial Services, Nifty FMCG and Nifty Consumer Durables were outperforming the NSE platform by rising as much as 0.88 per cent, 0.76 per cent, 0.64 per cent and 0.44 per cent, respectively. Nifty Media, however, shed 0.21 per cent.
On the stock-specific front, Bajaj Finance was the top gainer in the Nifty pack as the stock jumped 3.63 per cent to trade at Rs 7,653. Bajaj Finserv, Adani Ports, NTPC and Infosys climbed up to 2.67 per cent.
In contrast, BPCL, Tata Steel, Hindalco, Bajaj Auto and Dr Reddy's Labs were among the top laggards.
The overall market breadth was positive as 2,377 shares were advancing while 630 were declining on BSE.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
Also read | Bajaj Finance shares climb 5% after Q3 update; full details
Also read | Top 5 stocks to watch on January 4, 2024: Adani Ports, Vedanta, Torrent Power and more