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

Dark secrets of share market

Dark secrets of share market
Stock market has some dark secrets that no broker tells. And what is more surprising is that these secrets belong to the steps taken to make money.
Let’s see how positive things turn negative
1# Commodity price risk
When price of commodity escalates, it brings joy to the companies that see commodities as output. But for companies that see commodities as inputs see loss in increased. Companies that don’t deal in commodities also face difficulties with price escalation. It is so because the customers start selling commodities. And it won’t be an exaggeration to say that commodity pricing effects the entire economy.
2# Headline risk
Do you remember the news of Fukushima nuclear crisis? This news surfaced in 2011 and it drowned all the stocks related to businesses related to nuclear power like uranium miners. It is called headline risk and no business is free from this risk. A torrent ofnews-reports regarding a business can have an adverse effect on its commodity p…

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…

Reliance Infra arm moves Delhi HC over arbitration award against DMRC; stock up 5%

Subsidiary Delhi Airport Metro Express has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation.
Reliance Infrastructure share price rallied 5 percent intraday Tuesday after the company's subsidiary DAMEPL has moved the Delhi High Court over the execution of Arbitration award against DMRC.

"...subsidiary Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) has moved the Delhi High Court seeking execution of the Arbitration award it had won against Delhi Metro Rail Corporation (DMRC)," the company said in its filing.

The arbitral award was recently upheld by a single judge bench of the Delhi High Court.

In its petition filed under section 36 of the Arbitration and Conciliation Act in the division bench headed by Chief Justice of Delhi HC, DAMEPL has sought an order for the execution of the award dated May 11, 2017 passed by the Arbitral Tribunal and direct DMRC to pay a around Rs 5,200 crore, the company said.