Sharekhan has issued a 'BUY' rating for Coforge, Coromandel International, and Bajaj Finserv. These stocks are expected to yield returns of up to 40%; learn more about these companies.
Buy: If you are looking for stocks with promising returns, brokerage firm Sharekhan's recent report highlights Coforge, Coromandel International, and Bajaj Finserv. These companies have reported excellent quarterly results, leading to a BUY rating from the brokerage firm. Let's understand these companies' results and why returns of up to 40% are anticipated.
1. Bajaj Finserv: Slower Insurance Growth, Yet Positive Outlook
Rating: BUY
Current Price: ₹2,026
Target Price: ₹2,350
Potential Return: 16%
Bajaj Finserv delivered mixed results in the March quarter. Its life insurance business saw a mere 6% growth in Annual Premium Equivalent (APE), down from 18% in the previous nine months. This decline was primarily due to weakness in the agency channel. However, the company's Value of New Business (VNB) grew by 14%, and its margin improved to 22.1%.
The general insurance business also showed slow growth, with no significant change in premiums. Nevertheless, investors anticipate good returns, and the company's future growth prospects remain positive.
2. Coromandel International: Excellent Performance and Poised for Rapid Growth
Rating: BUY
Current Price: ₹2,227
Target Price: ₹2,535
Potential Return: 14%
Coromandel International reported revenue of ₹4,988 crore in the March quarter, a 27.5% increase year-on-year. The company performed exceptionally well in both its nutrient and crop protection segments, resulting in an operating profit of ₹426 crore, a 56% year-on-year increase.
Coromandel International is diversifying its business further by investing in areas such as specialty chemicals, drone technology, and Contract Development and Manufacturing (CDMO). These steps will ensure stable and robust long-term growth for the company. Therefore, Coromandel could be an attractive option for investors.
3. Coforge: Shining in the IT Sector, Strong Order Book, and Expanding Margins
Rating: BUY
Current Price: ₹7,499
Target Price: ₹10,490
Potential Return: 40%
Coforge reported revenue of $410.2 million in the March quarter, a 3.4% increase quarter-on-quarter and a 43.8% increase year-on-year. This performance exceeded company expectations. The company's EBITDA margin increased to 16.9%, and the adjusted margin reached 18.7%.
Coforge's order book has reached $1.5 billion for the next 12 months, representing a 10% quarter-on-quarter and a 47% year-on-year growth. The company aims to achieve $2 billion in revenue by FY27 and increase its EBITDA margin to 18%. It also plans to increase its EBIT margin from 13.2% to 14% by FY26. All these factors make Coforge a b and attractive investment option, with potential returns of up to 40%.
(Disclaimer: This information is for informational purposes only. Please consult a financial expert before making any investment decisions.)
