Nifty At 13,000: These Four Index Stocks Have Unanimous Buy Calls From Analysts
The four Nifty 50 stocks have further upside potential too.
The NSE Nifty 50 index scaled the 13,000-mark for the first time on Tuesday, and has now gained more than 73% from its 52-week low in March.
Despite the strong run-up, four constituents of the index have not just only ‘buy’ recommendations from all analysts that track them, but also further upside potential. The four stocks include a private bank, a telecom major, a metal giant and India’s largest port operator.
Here Are The Four Stocks
ICICI Bank Ltd.
- Analysts Tracking: 54
- Buy Recommendations: 54
- Return Potential: 9.3%
The Mumbai-based private lender has recovered 78% from its 52-week low of Rs 268 on March 25, 2020.
Not only do all the analysts tracking the stock have a ‘Buy’ recommendation, it also has the second-highest return potential among its listed peers on the Nifty 50.
Based on the consensus estimate of analysts tracked by Bloomberg, the stock has further upside potential of 9.2%, second to State Bank of India, having an upside potential of 17%.
“We see earnings recovering from FY22 with improved growth and lower credit costs,” Jefferies India analyst Prakhar Sharma wrote in a note on the lender. “NPL (non-performing loan) formation may be elevated in H2FY21, but is adequately provided for.”
Nifty At 13,000... Now What?
Bharti Airtel Ltd.
- Analysts Tracking: 32
- Buy Recommendations: 32
- Return Potential: 41.7%
The telecom major nearly doubled from its 52-week low of Rs 361 in March this year, hitting an all-time high of Rs 612 on May 20. Even as its share price has fallen since then, analysts see further upside owing to the company’s rising market share, subscriber addition and potential hike in tariffs.
“Strong mobile revenue growth will help widen the gap with Vodafone Idea and drive market share gains for Bharti Airtel,” according to a note from Citi.
Analysts think that its performance in the second quarter has offset much of the downside risks on the delay in tariff hikes in FY21.
“Bharti Airtel is well-poised to gain market share and grow even in the absence of a tariff hike,” a note from Dolat Capital said post its second quarter results.
Hindalco Industries Ltd.
- Analysts Tracking: 24
- Buy Recommendations: 24
- Return Potential: 17.9%
The integrated aluminium producer and copper manufacturer of the Aditya Birla Group hit a 52-week high of Rs 227.2 on Nov. 19, gaining nearly two-and-a-half times from its 52-week low of Rs 84.9 in March this year.
Despite the surge, all the analysts tracking the company remain bullish on the stock, citing better-than-expected volume recovery for its subsidiary Novelis and capacity addition-led volume growth. Novelis also raised its guidance for Ebitda per tonne to $480-500 from $430-450 over the next three years.
“Hindalco’s profitability is expected to remain high despite approximately 58% of LME being booked at lower LME for H2 FY21,” Motilal Oswal said in a research note after the company’s second-quarter results.
Adani Ports & SEZ Ltd.
- Analysts Tracking: 25
- Buy Recommendations: 25
- Return Potential: 8%
The stock crossed its 52-week high on Tuesday trading session and has doubled from its 52-week low of Rs 203 in March.
The run-up has ensured that the stock erased its year’s losses to trade with gains of 9%.
Analysts are betting on the company’s acquisition of Krishnapatnam port, its latest, to be value accretive.
“We believe Adani Ports is well placed to enhance shareholder value from distress asset sale in the current environment,” Jefferies India analyst Lavina Quadros wrote in a note. “The company’s new assets will add value in the years to come and ensure it continues to gain market share and grow profitable faster than other major ports.”
Morgan Stanley, while maintaining its overweight stance on the counter, raised the company’s FY21-23 revenue estimates by 9-17% and Ebitda estimates by 15-19% post its second quarter results.