In the period of market volatility, brokerage companies have currently given their opinion on two such stocks, in which investors can benefit. Let us see what the brokerage firm is seeing in the shares of these two companies and what is the expectation of profits for the investors.
Info Edge Limited
Brokerage Firm – Edelweiss
Rating – HOLD
Target Price – Rs 6484
The results of the second quarter of the financial year 2021-22 Info Edge (IEL) have been good as expected. The company’s entire billing has increased by 61.3 percent as compared to the second quarter of the last financial year. In fact, there has been an increase of 73.9 45.9 and 74.7 percent in Recruitment, Real Estate and Education respectively. Improvements in the economy and leadership position of the company are helping its core business.
After re-rating of Zomato and Policybazaar, InfoEdge is being re-rated. The company is not going to bring IPO, so it is focusing its entire attention on the core business. As the company’s core business improves, its stock will also move on the same basis. This share can be given a hold rating and its target price is being increased from Rs 5,981 to Rs 6,484.
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Brokerage Firm – Kotak Institutional Equities
Rating – BUY
Fair Value Per Share -Rs 210
Power Grid has achieved a net profit of Rs 33.5 billion in the second quarter (2021-22). There has been an increase of ten percent in comparison to the last financial year (2020-21). The asset capitalization of the company is Rs 76.6 billion. The company has projects worth Rs 275. For this, capex of Rs 157 billion has been done, which is showing good growth in the near term.
Apart from this, POWERGRID is also preparing to complete the transmission project worth Rs 265 billion. The company may get the contract for the project of installing meters in the distribution infrastructure. The valuation of the company at 8.4XP/E and 1.5XP/B looks quite attractive. Hence its BUY rating has been retained. The revised fair value of this share is being increased from Rs 205 to Rs 210.