Five Nifty 50 stocks rallied over 50% in 2023; here’s what to expect from 2024
Power, renewable energy, automobiles, and infra stocks are anticipated to continue to play a substantial role in the stock market in 2024, saya top executive of a trading platform
- Dec 22, 2023,
- Updated Dec 23, 2023 2:48 PM IST
The calendar year 2023 turned out to be a fabulous year for the Indian stock markets, with benchmark equity indices hitting new all-time highs. On a year-to-date basis, the NSE Nifty index climbed over 17 per cent. Meanwhile, as many as five stocks in the 50-share index rallied over 50 per cent in 2023 till December 21.
Data showed that shares of Tata Motors, which also owns the luxury car brand Jaguar Land Rover (JLR), surged the most at 82 per cent YTD to Rs 708.85 on December 21.
Brokerage Sharekhan is bullish on Tata Motors with a target price of Rs 840. “We reiterate our Buy rating on Tata Motors JLR is expected to perform better in H2FY24 versus H1FY24. Net automotive debt has been consistently declining. EBITDA margin in domestic PV segment has been improving and sustaining EBITDA margin in domestic CV space. Strong festive sales have supported its retail volumes in PV segment,” Sharekhan said in a report.
The brokerage further added that the expected price hike from January 2024 in the domestic CV segment (up to 3 per cent) would help the company in sustaining high-margin trajectory.
Sharekhan further believes that with an improvement in cash flow, the net automotive debt is expected to come down in coming quarters, given net automotive debt has already come down from Rs 41,700 crore in Q1FY24 to Rs 38,700 crore in Q2FY24.
Shares of NTPC also rallied over 81 per cent on a year-to-date basis. The scrip advanced to RS 301.95 on December 21 from Rs 166.45 on December 30 last year.
Two-wheeler major Bajaj Auto is next on the list. Shares of the company gained 72.74 per cent to Rs 6,246.35 from Rs 3,616.05 during the same period.
Brokerage KR Choksey is bullish on Bajaj Auto with a target price of Rs 7,093. The brokerage in a report said that Bajaj Auto has seen strong domestic volume growth in the festive season and has continued to see healthy demand for its vehicles even post end of the festive season. The company’s sharp focus on the 125cc+ segment within domestic two-wheelers is yielding market share gains and positive mix change.
“The uptick in demand for Triumph in the pro biking segment has surprised positively and will contribute incrementally to volumes and mix going ahead as Bajaj Auto ramps up capacity and distribution. We forecast a stable margin environment for Bajaj Auto as the input costs are largely steady and the margin uptick from a higher share of 125cc+ within domestic two-wheelers will possibly be nullified by unfavourable improvement in sales of two-wheelers in export markets,” KR Choksey said.
Engineering and infrastructure conglomerate Larsen & Toubro and PSU major Coal India also gained 64.16 per cent and 57.96 per cent YTD.
Elara Capital has an ‘Accumulate’ rating on Coal India with a revised target price of Rs 385 (earlier Rs 299). “We introduce FY26 earnings based on 4.5 times FY26E EV/EBITDA. We remain positive on Coal India given solid volume delivery in the past few quarters and expected annual dividend pay-out of Rs 20-23 per share, implying a 7 per cent yield,” the brokerage said.
While sharing his views on 2024, Trivesh D, COO, Tradejini said, “In 2024, Indian market will experience a period of stability following the general elections. The ruling party is predicted to win, which will then likely lead to a small rally and consolidation in the market for the rest of the year. This stability will provide a positive environment for investors and businesses, promoting growth and development.”
In terms of sectors, Trivesh D believes that power, renewable energy, automobiles, and infrastructure stocks are anticipated to continue to play a substantial role in the stock market in 2024 due to the continuous emergence of new technologies, especially the EV sector. “I am looking forward to public sector undertakings (PSU) and how they grab the attention of foreign investors,” he said.
Also Read: Top IPOs: IREDA, Signatureglobal among the 8 newly-listed firms that rallied over 100% in 2023
The calendar year 2023 turned out to be a fabulous year for the Indian stock markets, with benchmark equity indices hitting new all-time highs. On a year-to-date basis, the NSE Nifty index climbed over 17 per cent. Meanwhile, as many as five stocks in the 50-share index rallied over 50 per cent in 2023 till December 21.
Data showed that shares of Tata Motors, which also owns the luxury car brand Jaguar Land Rover (JLR), surged the most at 82 per cent YTD to Rs 708.85 on December 21.
Brokerage Sharekhan is bullish on Tata Motors with a target price of Rs 840. “We reiterate our Buy rating on Tata Motors JLR is expected to perform better in H2FY24 versus H1FY24. Net automotive debt has been consistently declining. EBITDA margin in domestic PV segment has been improving and sustaining EBITDA margin in domestic CV space. Strong festive sales have supported its retail volumes in PV segment,” Sharekhan said in a report.
The brokerage further added that the expected price hike from January 2024 in the domestic CV segment (up to 3 per cent) would help the company in sustaining high-margin trajectory.
Sharekhan further believes that with an improvement in cash flow, the net automotive debt is expected to come down in coming quarters, given net automotive debt has already come down from Rs 41,700 crore in Q1FY24 to Rs 38,700 crore in Q2FY24.
Shares of NTPC also rallied over 81 per cent on a year-to-date basis. The scrip advanced to RS 301.95 on December 21 from Rs 166.45 on December 30 last year.
Two-wheeler major Bajaj Auto is next on the list. Shares of the company gained 72.74 per cent to Rs 6,246.35 from Rs 3,616.05 during the same period.
Brokerage KR Choksey is bullish on Bajaj Auto with a target price of Rs 7,093. The brokerage in a report said that Bajaj Auto has seen strong domestic volume growth in the festive season and has continued to see healthy demand for its vehicles even post end of the festive season. The company’s sharp focus on the 125cc+ segment within domestic two-wheelers is yielding market share gains and positive mix change.
“The uptick in demand for Triumph in the pro biking segment has surprised positively and will contribute incrementally to volumes and mix going ahead as Bajaj Auto ramps up capacity and distribution. We forecast a stable margin environment for Bajaj Auto as the input costs are largely steady and the margin uptick from a higher share of 125cc+ within domestic two-wheelers will possibly be nullified by unfavourable improvement in sales of two-wheelers in export markets,” KR Choksey said.
Engineering and infrastructure conglomerate Larsen & Toubro and PSU major Coal India also gained 64.16 per cent and 57.96 per cent YTD.
Elara Capital has an ‘Accumulate’ rating on Coal India with a revised target price of Rs 385 (earlier Rs 299). “We introduce FY26 earnings based on 4.5 times FY26E EV/EBITDA. We remain positive on Coal India given solid volume delivery in the past few quarters and expected annual dividend pay-out of Rs 20-23 per share, implying a 7 per cent yield,” the brokerage said.
While sharing his views on 2024, Trivesh D, COO, Tradejini said, “In 2024, Indian market will experience a period of stability following the general elections. The ruling party is predicted to win, which will then likely lead to a small rally and consolidation in the market for the rest of the year. This stability will provide a positive environment for investors and businesses, promoting growth and development.”
In terms of sectors, Trivesh D believes that power, renewable energy, automobiles, and infrastructure stocks are anticipated to continue to play a substantial role in the stock market in 2024 due to the continuous emergence of new technologies, especially the EV sector. “I am looking forward to public sector undertakings (PSU) and how they grab the attention of foreign investors,” he said.
Also Read: Top IPOs: IREDA, Signatureglobal among the 8 newly-listed firms that rallied over 100% in 2023