Brokerage firm Jefferies has maintained a buy rating on Ambuja Cements and Max Financial Services based on demand and better margin outlook. The brokerage firm sees an upside of up to 58% in these stocks on their closing price on March 15.  

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Max Financial Services | Target Price: Rs 1410
After some slowdown in Jan'22, Max Life's prop channel is picking up both in agency and e-commerce lines, says the brokerage. "Prop channel had declined in Jan'22 but is back in strong growth in Feb'22. Its web-aggregator driven business is picking pace," it said.

The brokerage is of the view that the margin outlook of this isnurance company is better owing to product mix. "While growth may remain soft in the near term, current stock level provides reasonable risk reward," it said assigning a buy rating to Max Financial Services.  

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At Tuesday's (March 15) closing price of Rs 774.70, the upside on target price of Rs 1410 translates into 58%.  

In the past one year as on March 16, this insurance stock has given negative return of over 10%.  

Ambuja Cements | Target Price: Rs 360
Ambuja expects industry demand growth for CY22 to be in line with GDP growth for the country, however, demand for the current quarter is not matching expectation, says Jefferies.  

"Currently, demand is good in urban centres, but weak in rural markets. Medium term (3-5 years) demand prospects look promising with government's focus on housing and infrastructure development," it said

Ambuja expects its volume growth trend to be largely in line with the industry, however, there will be attempts to increase market share.

Jefferies maintained buy rating for this cement stock with target price of Rs360, which translates into 22% upside on Tuesday's closing price of Rs 29 per share.

This cement stock has gained barely 6% as on March 16 in the past one year, showed technical data of the stock.  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)