ICICI Bank has performed well in its first quarter results. ICICI Bank’s net profit has increased by 77 percent. The same HCL Technologies and HDFC Life Insurance are also showing scope for good performance. Therefore, experts have given BUY rating to the shares of these three companies. Let’s see Financial Services Company Jefferies What is your opinion about these shares?
1. HCL Technologies Rating – BUY Target Price – Rs 1220
In the opinion of experts, HCL Technologies may have missed the growth projections during the current financial year but the management has shown a lot of confidence in its outlook. In the last two quarters, the company has secured deals worth $4.7, which is considered very good. On the other hand its existing pipeline is also present. Management feels that the growth will be very good going forward. Increasing the number of employees also shows the confidence of the management. In the last six months, revenue has increased by 4 per cent and the number of employees has increased by 11 per cent. Guidance has been given for revenue growth to reach double digits in the financial year 2021-22, while the Ebit margin remains at 19-21 percent. That’s why it has been given a BUY rating. However, the target price has been reduced from Rs 1255 to Rs 1220.
2. ICICI Bank Rating – BUY Target Price – Rs
ICICI Bank has performed well in the quarter of the current financial year. The net profit of the bank grew by 77 percent, while the net interest income (NII) registered a growth of 18 percent. The bank’s retail loan growth is showing good growth. NII is also in good shape. The bank’s business banking is also getting good support. The Bank’s asset quality/growth is also in a clear position in terms of expanding Net Interest Margin. In the fourth quarter (Q4) of the last financial year, the bank’s retail loan growth had increased by 40 percent. There was an increase of 17 per cent in NII. The revenue momentum of the bank can also be good. The first quarter results have proved this. Hence this stock has been given a BUY rating. The target price has been kept at Rs 780.
Big breakout is visible in Nifty above 15,950, expect gains in Tata Steel, ICICI Prudential
3. HDFC Life Insurance Rating – BUY Target Price – Rs 800
HDFC Life’s front-ended Excess Mortality Reserve (EMR) is Rs 7 billion, which is 5 times the net Covid claim for FY 2021-22. As per the guidance of the management, the reserve should be sufficient to meet the requirement of COVID-2 claim. But also keep in mind that there is also a danger of third wave in the country. It has spent the net reserve accretion for the first quarter of the financial year. Due to this its net profit has decreased by 33 percent compared to last year. Management is of the view that individual claims are not so high as of now and the existing provisioning is sufficient for more death claims. It has been rated as BUY but the target price has been reduced to Rs.800.
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