SpiceJet, Motherson Sumi and more: Hot stocks where you can make money
SpiceJet, Motherson Sumi and Can Fin Homes are some of the stocks that have come under brokerages' radar at a time when Sensex, Nifty are off over 10 per cent from their lifetime highs.
Amid volatile market trend where the Sensex and Nifty are off over 10 per cent from their lifetime highs, stock specific moves by investors will ensure they rule the roost and among these have emerged SpiceJet, Motherson Sumi and some other shares. In Tuesday's trade, the benchmark indices were trading lower tracking negative global cues as an escalating trade spat between the United States and China and a renewed slump in tech shares such as Amazon.com sapped investor confidence. However, the fall in Indian markets was lower as compared to Asian and US markets. Wall Street tumbled sharply with key indices slipping below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain’s vote to leave the European Union in June 2016. At 11:50 am, the Sensex was trading at 33,196, down 58.83 points, while the broader Nifty50 was ruling at 10,188, down 23.35 points. Here are the key stocks where broking firms see potential gains:
1) Spicejet share price
Brokerage Edelweiss Securities interacted with SpiceJet CFO Kiran Koteshwar.
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- Enthused about the growth prospects of the company
- Robust domestic passenger growth to outstrip capacity addition
- Profit to grow with improving yields
- Addition of new planes to prune costs
- Expect volume and earnings per share to compound at 22 percent and 37 percent respectively over the fiscal 2017-2020
- Maintains buy rating on the stock with a target price of Rs 166
2) Motherson Sumi share price
Motherson Sumi on Monday said it has inked a pact to acquire interior components and modules manufacturer Reydel Automotive Group (Reydel) for $201 million (over Rs 1,307 crore).
- Reydel strengthens interiors vertical; Expect synergies across clients and geographies
- Deal to provide more avenues for in-sourcing and margin improvement
- Deal appears inexpensive and EPS accretive
- Acquisition to take Motherson one step closer to meet revenue target for the next financial year
- Maintains buy rating on the stock with a target price of Rs 420
3) NTPC share price
NTPC, India’s largest power generator, on Monday announced it has commissioned two units of 660 Megawatt (MW) capacity each at Meja Thermal Power Project in Uttar Pradesh. With the commissioning of the two units, the company’s total capacity has reached 53,651 Mw.
Poor coal supply situation could impact March quarter results.
March quarter-end regulated equity would be similar to December quarter.
2260MW difference between commissioned and commercial capacity provides visibility for commercialisation in the next financial year.
Maintains buy rating on the stock with a target price of Rs 196
4) Can Fin Homes share price
The state-run lender Canara Bank on Saturday said it has called off the divestment process of its entire stake in the housing finance company. In a filing to BSE, the bank said it has cancelled the process as the quotes it received were not in tune with the valuation it had arrived at.
- Expect stock to further drop as divestment process called off
- Business likely to remain weak in the previous quarter
- Right issues to be key driver for stock performance
- Maintains buy rating on the stock with a target price of Rs 575
5) Tata Chemicals share price
Tata Chemicals' nutraceuticals project at Nellore in Andhra Pradesh being developed with an investment of Rs 275 crore is expected to be ready by 2019, a top company official told PTI. The company has already bought the land and started the construction of the plant.
- To use cash cows to invest in growth businesses
- To focus on consumer and specialty products
- Existing salt distribution network to boost consumer business
- To be net debt-free by March 2020; RoCE to improve considerably
- Reduction in debt via sale of fertilizer business and investments
- Expect revenue and net profit to compound at 9 percent and 22 percent respectively over the fiscal 2018-2020
- Maintains buy rating with a target price of Rs 940, in bull case, Rs 1147
6) Hero MotoCorp share price
Two-wheeler major Hero MotoCorp today reported its highest ever monthly sales, clocking 7,30,473 units in March, a 20 per cent increase over the year-ago period. The company had sold 6,09,951 units in the corresponding month last year, Hero MotoCorp said in a statement. For the 2017-18 fiscal, the company clocked its highest ever sales of 75,87,130 units, up 14 per cent as compared with sale of 66,64,240 units in 2016-17.
- Upgraded the stock to 'buy' from 'hold'
- Target price raised from Rs 3800 to Rs 4200
- Valuations cheaper following recent slump in stock
- The company to benefit from receovery in rural area
- One of the best firms on operational basis