Bank of India
Bank of India is currently trading at around Rs 80 levels and Sharekhan has a target of Rs 85 for the stock. The stock was recently in the news for hopes of government privatization.
The brokerage firm finds that the bank’s performance on the other source of income, which was at Rs, was consistent. 2,053 crore for Q4FY2021, stable compared to Q3FY2021, but 21.6% higher than last year. It also found that retirement coverage was solid at 86.24% in Q4FY2021, which has improved from 83.75% in Q4FY2020, cushioning profitability.
“We expect the bank to achieve a RoA / RoE of 0.36% / 6.6% by the 2023E financial year, led by stable balance sheet growth along with a higher level of pension coverage and stable asset quality. We assume, however that asset quality performance will continue to be an important factor to monitor. ” medium term. We have refined our estimates and target multiples. We are upgrading the stock to a buy rating with a revised price target of Rs. 100, “said the brokerage. Bank of India’s shares were last traded at Rs 80 on the NSE.
MOIL
Sharekhan has also recommended buying MOIL’s state-owned shares. The company has 11 mines that are mainly engaged in manganese mining.
The brokerage believes that MOIL has underperformed the metal index over the past few quarters.
“MOIL’s valuation is four times its EV / EBITDA value in FY 2023E (12% discount from its historical average EV / EBITDA multiplier for one year of 4.5 times) and its high cash position of Rs. 1,905 Billion (Rs. 80 per.) Attractive share or 42% of market capitalization) offers scope for share buybacks (last buyback announced in November 2019 at a price of Rs. 152 per share) and a high dividend payout. Therefore we keep a buy rating of MOIL with a revised price target of. at Rs. 225 (increase reflecting an upward revision of earnings and a higher EV / EBITDA multiple), “the brokerage firm said.
MOIL shares last traded at Rs 190. A good choice in the long run, according to brokerage.
Birlasoft
Birlasoft is an enterprise digital and IT company recommended by Sharekhan. The brokerage sees a good CAGR on earnings for Birlasoft at 15/27% over 21-23.
“At current market price, the stock trades for 25.5x / 20.8x / 17.6x its FY2022E / FY2023E / FY2024E gains. We stick with the stock given the strong net cash position of Rs. 1,119 billion (11% of market cap) positive versus., a healthy FCF generation and an improved payout ratio. Therefore we are maintaining a buy rating of Birlasoft with a revised price target of Rs. 450, “said the broker.
The main risks for the company are therefore the deteriorating demand for IT services in the wake of the second COVID-19 wave and tough competition.
Emami
Sharekhan also has a buy call for Emami shares. The company owns brands such as Boro Plus, Navratna, Fair and Handsome, Zandu Balsam, Mentho Plus Balsam and Kesh King.
According to the broker, the stocks are currently trading at 25 times the earnings of the FY2023E, which is a discount to some close competitors.
“We are maintaining a Buy recommendation on the stock with a revised price target of Rs. 635,” said the broker. Emami shares were last traded at Rs 542 on the National Stock Exchange, and when compared to some of their peers, it has a far lower valuation in terms of P / E ratio.
Disclaimer of liability
The above stocks are selected from brokerage reports. Neither the brokerage firm, nor the author, nor Greynium Information Technologies are liable for any loss resulting from decisions made based on the article. The above article is for informational purposes only and stock market investments are risky. Investors should consider risk before investing. Please do not buy stocks based on the information provided above, but contact a registered advisor.
source https://dailyhealthynews.ca/4-stocks-sharekhan-is-suggesting-to-buy-for-long-term-investors/
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