Top Stock Picks with Potential Upside: Aditya Birla Capital and Hyundai Motor India
Indian benchmark indices experienced a downturn on January 13th, with the Nifty closing around 23,085.95. The Sensex ended down 1,048 points, a 1.36% decrease, settling at 76,330.01. Similarly, the Nifty fell by 345 points, a 1.47% decline, closing at 23,085.95.
Stocks to Watch with Potential Gains
Despite the market dip, several stocks show promising upside potential. Let's examine two such companies with 'Buy' recommendations from well-known brokerages:
1. Aditya Birla Capital Ltd
Aditya Birla Capital Limited operates across diverse financial services, including lending (both as an NBFC and a housing finance institution), life and health insurance, asset management, general insurance, and stock broking.
With a market capitalization of Rs 44,949.21 crore, shares of Aditya Birla Capital Ltd were trading at Rs 172.45, a 1.62% increase compared to the previous closing price.
Morgan Stanley, a global brokerage, issued a ‘Buy’ recommendation for this fintech stock, setting a target price of Rs 247 per share. This suggests a potential 44% upside from the current price of Rs 172.
Morgan Stanley analysts highlighted AB Capital’s strong asset quality management. They anticipate a 20% Compound Annual Growth Rate (CAGR) in assets under management (AUM) from fiscal year 2024 to 2027. Additionally, they project an 18% CAGR in earnings per share (EPS), which is expected to drive the return on equity (RoE) above 15% by fiscal year 2027 for its NBFC division.
2. Hyundai Motor India Ltd
Hyundai Motor India Limited stands as the world's third-largest auto original equipment manufacturer (OEM) by passenger car sales. The company manufactures and sells dependable and technologically innovative four-wheeler passenger vehicles. The firm is also involved in the production of components like gearboxes and engines.
With a market capitalization of Rs 1.45 lakh crore, the shares were trading at Rs 1,790.90, a 1.32% increase compared to the previous closing price.
HSBC, another prominent global brokerage, has assigned a 'Buy' rating to this automobile stock, with a target price of Rs 2,200 per share. This indicates a potential 23% upside from Tuesday's price of Rs 1,791 per share.
HSBC emphasizes the company’s strong position for long-term growth within India's auto sector. They anticipate new product launches and capacity expansion to fuel growth over the next 2–3 years. They also foresee stable margins, although they acknowledge the risk posed by potentially weaker model launches.
Disclaimer
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