Buy or sell: Eicher Motors, HPCL, Lodha may give good returns in a volatile mkt
Indian shares hit a fresh five-month low on Tuesday as domestic lenders tracked losses in global peers on the back of US lenders Silicon Valley Bank and Signature Bank crisis that sparked a global sell-off in the sector.
The Nifty 50 index was down 0.4% at 17,084, while the S&P BSE Sensex dropped 0.3% to 58,041 as of 10:31 am.
Investors are cautious in the current global scenario, Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services, said.
“There is some hope that the Fed (Federal Reserve) may not be as aggressive with the rate hikes after the SVB collapse, which could be offering support to the market,” Khemka said.
“Though the closing hour attempted a recovery rally, it looked too feeble to convince Nifty away from a 17050 slide, with potential for an expansive plunge towards 16500-200 later. Expect early upswings to see rejected trades once in the 17255 vicinity. Upside hopes will be rekindled once in the 17050-17000 vicinity or if an outright push above 17255 unfolds,” said Anand James – Chief Market Strategist at Geojit Financial Services.
Here are two buy/sell calls for today:
1) Eicher Motors: Domestic brokerage and research firm ICICI Direct Research has a sell call on Eicher Motors. The initiation range for the stock was between ₹3038 and ₹3044. The target price is kept at ₹3003 and stop loss at 3067. The time frame given is intra-day.
2) HPCL: The brokerage has given a “Buy” action on the petroleum refineries company with a buying range between ₹227.20-227.60 and a target price of ₹230. The time frame given is intraday. Stop loss can be kept at ₹225.40.
Buy calls for long term:
Macrotech Developers Ltd: The recent correction in Lodha gives an attractive entry point into one of India’s leading real estate developers, which has demonstrated industry leading sales and business development, consistently superior margins and cash generation, aggressive de-leveraging of the balance sheet, and has access to a large land-bank.
Lodha aims to maintain double-digit growth and market share in the key markets of Mumbai and Pune, through a combination of owned land and joint development agreements, said brokerage Kotak securities, maintaining a ‘Buy’ rating, with unchanged fair value of ₹1,300 per share.
Lodha with its diversified presence across different markets across MMR is handsomely placed among peers to gain further market share. The company is targeting a 15 per cent market share out of three cities – Mumbai, Pune and Bengaluru – which together have a potential of ₹1.75 lakh crore.
“The CMP implies adjusted EV/EVBITDA of 3.1 times on FY2024 pre-sales of Rs146 billion and margins of 35 per cent,” the brokerage said.
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