As October 29 approaches, market enthusiasts are set to see heightened activity around key stocks due to Q2 earnings announcements, ratings updates, and revised target prices from prominent brokerage firms.
Here’s an in-depth look at stocks to watch and potential money-making opportunities based on expert insights and revised ratings.
1. Ambuja Cements (Target Price: ₹640)
Goldman Sachs has revised Ambuja Cements’ target price from ₹625 to ₹640, maintaining a Neutral rating. The cement giant has reported robust volumes and solid realizations, exceeding expectations for Q2. With ongoing efforts on both organic and inorganic expansions, Ambuja Cements continues to attract attention for its growth-focused strategy. However, with most of the growth and profitability improvements already factored into its current valuation, Goldman Sachs has taken a cautious stance on further upside.
2. Sun Pharma (Target Price: ₹1600)
The brokerage maintains a Sell rating on Sun Pharma but has revised its target price from ₹1525 to ₹1600 following an impressive Q2. The results exceeded expectations due to lower R&D expenditures, though upcoming R&D expenses and costs associated with Deuroxolitinib launch may continue to weigh on margins. Analysts highlight that despite the Q2 outperformance, current valuations have yet to account for significant associated risks.
3. REC Limited (Target Price: ₹653)
Bernstein remains positive on REC’s outlook, reiterating an Outperform rating with a target price of ₹653. The power sector financing company continues to capture analysts’ interest due to its stable financial performance and growth potential. REC’s promising performance aligns with the government’s focus on infrastructure and power, making it an attractive pick for investors with a long-term view.
4. Bharti Airtel (Target Price: ₹1595)
UBS maintains a Neutral rating on Bharti Airtel with a target price of ₹1595, driven by solid Average Revenue Per User (ARPU) growth and manageable churn. The telecom company posted a steady Q2 performance, with growth in its home broadband, Africa, and enterprise segments. Despite subscriber churn, Airtel recorded 4.2 million new 4G subscribers, primarily replacing low-ARPU users, which UBS analysts view as a favorable sign of revenue quality.
5. Bharat Electronics Limited (BEL) (Target Price: ₹320)
UBS keeps a Neutral stance on BEL, setting a target of ₹320. Q2 results showed a healthy profit and loss profile, though the possibility of securing new orders will be a determining factor for future valuation adjustments. With BEL’s consistent gross margin guidance at 42% and stable defense project contracts, the focus remains on the company’s ability to capture additional orders as it looks to sustain its growth.
6. Federal Bank (Target Price: ₹235)
Nuvama maintains a Buy rating for Federal Bank with a target price of ₹235, citing strong asset quality and solid loan growth. While deposit growth has shown a slight slowdown, liquidity coverage has improved, reinforcing its resilient position in the market. Federal Bank has recently launched co-lending initiatives within the microfinance institution (MFI) space, which, although small, is an area where management foresees stable asset quality.
7. Bharat Petroleum Corporation Limited (BPCL) (Target Price: ₹380)
Nomura updates its target price for BPCL from ₹368 to ₹380, maintaining a Buy rating. The energy company’s results reflected challenges in LPG under-recovery and inventory losses, with moderated Russian crude sourcing at 34%. Despite these factors, BPCL benefits from a supportive regulatory framework for auto fuel marketing margins, providing an optimistic view of its medium-term performance in the oil marketing sector.
8. Macrotech Developers (Target Price: ₹1600)
Nomura continues to back Macrotech Developers with a Buy rating and a target of ₹1600. A strong Q2 and promising H2 pre-sales outlook are expected to drive growth, with the firm targeting 20% year-on-year growth in H2. The expansion in Bangalore is projected to gain momentum, with the real estate giant aiming to capture a 15% market share by FY30.
As the market opens on October 29, these recommendations provide insight into stocks poised for movement. Investors may want to keep a close watch on these companies and factor in market experts’ analysis to make informed trading decisions.
