Comments of experts are coming continuously on how the stock market will be after Diwali. Investors are looking for such stocks which have strong fundamentals and can also give good returns. Edelweiss has recommended SAIL in such shares, while HSBC has advised to buy shares of Tata Motors.
SAIL
Rating – BUY Target Price – Rs 170
Brokerage Firm – Edelweiss
Edelweiss says that SAIL’s earnings for the second quarter of FY 2021-22 have been Rs 70.2 billion, which is higher than the estimate. This is an increase of 6.9 percent compared to the first quarter. The company’s sales volume has increased by 28 percent to 4.28 million tonnes as compared to the previous quarter. Although earnings have come down by 17 per cent due to higher coal prices, the company’s debt has come down by Rs 78 billion.
The company has given the second interim dividend which is Rs 4 per share, it is expected that the company will become debt free in the first quarter of the financial year 2022-23. At the same time, the sales volume will increase to 17 million tonnes in the financial year 2021-22. In view of this, Edelweiss has maintained its BUY rating. However, it has reduced its target price from Rs 180 to Rs 170.
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TATA MOTORS
Rating – BUY Target Price – Rs 550
Brokerage Firm – HSBC
According to the analysis of HSBC, Tata Motors (Tata Motors) Tata Motors had a loss of 44 billion rupees in the financial year 2021-22. It also had a loss in the first quarter. Jaguar Land Rovers volume declined by 24 per cent. This drop in volume has come due to the shortage of semiconductors. Apart from this, the domestic commercial vehicle market has also been affected due to high commodity prices. However, the lack of semiconductors may impact the company’s volumes. Hence, the company will find it difficult to free itself from debt. Nevertheless, the rating of ‘BUY’ given to this stock has been retained. Its target price is Rs 550.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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