Global View: NYKAA, SBI Cards & Tech Mahindra could give 16-40% return
Indian market managed to bounce back on Wednesday pushing the benchmark indices above crucial resistance levels. The Nifty50 closed above 17,100 levels.
Indian market managed to bounce back on Wednesday pushing the benchmark indices above crucial resistance levels. The Nifty50 closed above 17,100 levels.
Sectorally, buying was seen in metal, energy, banks, & auto while some selling was visible in healthcare, consumer durables, and telecom.
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We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
NYKAA: Buy
HSBC initiated coverage on FSN E-Commerce Ventures (NYKAA) with a buy rating and a target price of Rs 2,900 that translates into an upside of over 16 per cent from Rs 2,492 recorded on December 1.
The beauty and personal care e-commerce market is India’s next big growth story. “We expect a 10-year CAGR of over 30%,” said the note.
HSBC expects the beauty and personal care market (BPC) in India to grow 6x in the next 15 years.
This should be led by growth in e-commerce as we think the online penetration will rise from 8% to 35-40% in the next decade, driving a 30%+ CAGR in the BPC e-commerce market.
HSBC believes Nykaa, a leading and already profitable online business, can dominate the market over the next decade.
SBI Cards & Payment Services: Overweight
Morgan Stanley maintains its overweight rating on SBI Cards with a target price of Rs 1,350, which translates into an upside of over 40 per cent from Rs 958 recorded on December 1.
For October 2021, Industry Credit spending surged 26 per cent on an MoM basis. The MoM growth in cards is at 1.5%, which is a tad lower than the industry’s 2.1%.
Tech Mahindra: Buy
Jefferies maintained its buy rating on Tech Mahindra with a target price of Rs 1950 that translates into an upside of over 20 per cent from Rs 1588 recorded on December 1.
Sustainability is becoming an important evaluation criterion for the new deal wins. Clients are also engaging with the company to achieve their ESG objectives.
Remote working has improved ESG metrics materially, said the note. The hybrid model seems to be the way forward for the IT major.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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