Domestic benchmark indices ended in the green on October 5 (Thursday). The 30-share BSE Sensex pack jumped 406 points or 0.62% to close at 65,632, while the broader NSE Nifty index moved 110 points or 0.56% up to finish at 19,546. India VIX, fear index, dived 5.94% to 10.94-level.
For October 6 (Friday), share market analysts at a few brokerages have assigned 'Buy' calls on Bajaj Finserv, Macrotech Developers (Lodha), Navin Fluorine International and Mahanagar Gas. Check share price targets, analysis, investment rationale and other crucial details about these long-term bets.
LTP: Rs 1,544
Analysts at LKP Securities have given a 'Buy' call on Bajaj Finserv shares with a target price of Rs 1,867. The stock has shed 0.55% on a year-to-date (YTD) basis.
"Bajaj Finserv's new ventures in the financial marketplace Bajaj Finserv Direct and healthtech venture Bajaj Finserv Health have seen strong growth in the last couple of years in terms of not only topline but also in terms of transacting customers. We believe these new ventures to have significant option value in the long-term," said B&K Securities, while initiating coverage with a 'Buy' call on the counter.
LTP: Rs 749.70
Nuvama Institutional Equities has picked Macrotech Developers (Lodha) in its stock recommendations. The brokerage has given a 'Buy' call on the counter with a target price of Rs 919 per share. The stock has jumped 36.18% in 2023 so far.
Building in robust business development and debt reduction targets of the company, we expect the sales momentum to stay healthy generating higher cash flows, Nuvama said. The brokerage also noted that Macrotech has added two new projects with an aggregate value of Rs 2,300 crore in Q2 FY24.
LTP: Rs 3,699.95
HDFC Securities has selected Navin Fluorine International in its long-term bets. The brokerage has assigned a 'Buy' call on the counter, suggesting a target price of Rs 5,368. The stock has slipped 10.25% on a year-to-date (YTD) basis. "We expect Navin Fluorine's PAT (Profit after tax) to grow at a 30% CAGR over FY23-26E, led by a 33% CAGR in EBITDA. We retain our BUY rating on Navin Fluorine on the back of earning visibility given long-term contracts in speciality chemicals and HPP segments; a tilt in sales mix towards high margin high-value business; and capacity expansion-led growth," analysts from HDFC Sec stated.
LTP: Rs 1,116
Nuvama Institutional Equities has placed a 'Buy' rating on Mahanagar Gas Ltd (MGL) with a target price of Rs 1,411. MGL shares have surged 32.04% in 2023 so far. "MGL has cut CNG price by Rs 3/kg (4%) to pass on lower cost as well as normalise margins. This should trigger volume growth of 7–8% for the rest of FY24 (Q1 FY23: flat). Key takeaways: First, we estimate an Rs 3/kg cut in CNG corresponds to an 18% cut in HP-HT gas cost (Rs 0.4/kg); and b) 75% YoY fall in spot prices and earlier rollout of KPC recommendation. Second, we estimate lower prices shall increase CNG's competitiveness to petrol/diesel to 48%/33% (46%/30% earlier). Hence, MGL is targeting volume growth of 7–8% for the rest of FY24 and margin normalisation to Rs 10–12/scm (Rs 17/scm currently)," Nuvama underscored.
"Nifty has shown an upward movement following a hammer formation on the daily timeframe. Additionally, there is a hidden positive divergence observed on the daily RSI (Relative Strength Index). The strength of the trend is expected to persist as long as the index stays above 19,430. On the upper side, resistance is placed around 19,600, which may act as immediate resistance. A decisive move above 19,600 could propel the index to higher levels," said Rupak De, Senior Technical analyst at LKP Securities.
"For Nifty Bank, bulls displayed resilience before the RBI policy announcement by maintaining support in the 44,000-43,800 range. Immediate resistance on the upside lies at the 44,400-44,500 zone. A breakthrough here could trigger short-covering, potentially driving the index towards the 45,000 mark, which currently has the highest open interest on the call side. The RBI policy decision may influence the near-term direction of the index," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.