Global View: SBI, Devyani International, Bharti Airtel & BPCL top buys that could give 20-60% return

Bulls managed to take control of D-Street on Monday as the benchmark indices closed in the green.

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India VIX was marginally up by 0.14 per cent from 20.80 to 20.83 levels on Monday. Experts are of the view that till it holds below 17200 zones, bounce could be sold and weakness may be seen towards 16800 and 16500.

On the downside, medium-term hurdles can be seen at 17350 and 17500 zones.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

State Bank of India: Buy

Goldman Sachs maintained its buy rating on State Bank of India with a 12-month target price of Rs 739 that translates into an upside of nearly 60 per cent from Rs 465 recorded on 29 November.

The bank has maintained its 10% credit growth target for March’22. Goldman is of the view that retail is likely to remain the growth driver for the bank and could continue seeing 14-15% loan growth in the segment, with further upside in case the state of the economy, remains stable.

Recovery momentum continues with the Bank seeing sustained collection activity in the past two months, said the note.
 
The bank is more focused on technology and offers new features and positioning by mobile banking and lifestyle application called YONO.

Bharti Airtel: Outperform

Credit Suisse maintained an outperform rating on Bharti Airtel and raised the 12-month target price to Rs 900 from Rs 835 earlier that translates into an upside of over 20 per cent from Rs 739 recorded on 29th November.

The telecom major is well-positioned to benefit from improving sector dynamics. Bharti’s 20 – 25% tariff hike becomes sustainable. Bharti remains to be the preferred pick for Credit Suisse.

Devyani International: Buy

Jefferies initiated coverage on Devyani International with a 12-month target of Rs 185 that translates into an upside of over 30 per cent from Rs 139 recorded on 29 November.

The company is among the top QSR players in India. The past track record is modest on several parameters.

The global investment bank sees 37 per cent FY20-24 EBITDA CAGR with aggressive store Adds, and better economics.

BPCL: Buy

UBS maintained its buy rating on BPCL with a 12-month target price of Rs 600 that translates into an upside of over 60 per cent from Rs 367 recorded on 29 November.

The current valuation is pricing in the delayed Privatisation. It looks like valuation is ignoring improving marketing/refining fundamentals.

Valuation is also not factoring in Earnings/Multiple upside Post-privatisation. Any potential fast tracking of privatisation process will provide positive surprise, said the note.

(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.)