Skip to main content

3 hot stock picks from Geojit Financial Services

Federal Bank, UltraTech Cement and RBL Bank are on the radar of Geojit Financial Services

Geojit Financial Services recommends the following stocks:

Federal Bank Ltd                                 

Rating: BUY                              CMP: Rs115                                     TP: Rs134

Federal Bank Ltd (FB) is a mid-sized private commercial bank having a network of 1252 branches across India with a loan book size of ~Rs77,000cr.

FB maintained steady business growth in Q1FY18 with healthy 28 percent YoY & 18 percent YoY growth in Loan and deposits respectively. Loan growth outlook continues to remain robust supported by maturing retail network and strong traction in mid-size corporate and retail loans. Asset quality outlook has further improved due to reduction in large risk assets. Fresh slippages are expected to reduce in the coming quarters leading to lower provisions and we expect strong 32 percent CAGR in earnings over FY17-19E. FREE STOCK TIPS

Ultratech Cement Ltd

Rating: BUY                              CMP: Rs4,090                                  TP: Rs4,514

UltraTech Cement Ltd. (Ultratech), part of the Aditya Birla Group, is the largest producer of grey & white cement and ready-mix concrete in India.

Ultratech has completed the acquisition of Jaiprakash Associates’ assets in Q1FY18 and  overall capacity has increased by 21.2 MT to 93 MT. The focus now is to improve the operational efficiency and utilisation level of the acquired assets to 60 percent over the next one year and 70 percent by FY19. We expect the acquisition will be earnings dilutive in the short run, however the volumes are likely to grow at 19 percent CAGR over FY17-19E led by steady ramp up of Jaypee assets and pickup in demand from housing and infrastructure sectors.

RBL Bank Ltd

Rating: Accumulate                        CMP:Rs528                           TP:Rs591

RBL Bank Ltd. has emerged as one of the fastest growing private sector banks with a network of 215 branches and 374 ATMs.

RBL Bank continue to maintain high growth momentum with 40 percent YoY growth in advances and 45 percent YoY growth in earnings during Q1FY18. Higher earnings growth, steady asset quality, improving business mix and above industry average loan growth will help the bank to sustain premium valuations over new generation private sector banks.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.


Popular posts from this blog

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

HDFC Sec retains sell on Bharti Infratel, reduces target to Rs 310 despite 22% fall in last 2 months

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

Bharti Infratel shares declined 1.5 percent to close at Rs 368 on Tuesday after HDFC Securities has reiterated its Sell rating on the stock with revised target price at Rs 310 (from Rs 387 per share) despite sharp fall in last two months. INDIAN STOCK TIPS

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

"Target price is based on 20x Dec-19E EPS (Rs 356) for business as usual (versus 24x earlier) less impact of Rs 60 per share from Vodafone-Idea merger (versus Rs 39 per share earlier) and likely acquisition of Vodafone-Idea stake in Indus at enterprise value of Rs 50 lakh per tower (+Rs 15 per share)," the research house said.

It further said the key reason for the de-rating is instant loss of tenancies on merger of Vodafone-Idea and impact of Reliance Communications and Aircel businesses’ scaling down.

This would push back Bharti Infrat…