Stock Recommendations: India’s stock benchmarks advanced, aided by gains in metal, auto and banking stocks. The rebound in global equities continued after preliminary studies showed omicron strain may be relatively less likely than delta strain to land patients in hospitals.
The S&P BSE Sensex rose 0.47% to 57,197.04. The NSE Nifty 50 advanced by similar magnitude to 17,045.80.
Stock Recommendations [23-12-2021]
- Zomato: Zomato, Swiggy, Ola and Uber served petition filed by the Indian Federation of App-Based Transport Workers. Petitioners seek directions from the Supreme Court to the government to notify or recognize app-based workers as ‘workers’ or alternatively as ‘unorganised workers’ or ‘wage workers’ under various labour legislations.
- Zee Entertainment: Finalises terms of merger with Sony Pictures Network. New merged board will decide which brand to keep, says Punit Goenka.
- Vedanta: Proposes to offer NCDs aggregating up to Rs 1,000 crore in one or more tranches and in this regard, is holding a meeting of directors on Dec. 27.
- Tata Motors: Incorporated a wholly owned subsidiary named Tata Passenger Electric Mobility Ltd.
- Indiabulls Real Estate: Approves raising of up to Rs 1,500 crore via qualified institutional placement.
- Great Eastern Shipping: To consider share buyback proposal on Dec. 27.
- Kotak Mahindra Bank: Kotak Mahindra Prime acquires the Indian captive financing arm of Ford Motor Co., Ford Credit India. Acquisition gives Kotak Prime access to over 16,000 customers with outstanding loans of Rs 425 crore.
- Jubilant Foodworks: Morgan Stanley says 5-6% price hikes across the Domino’s India portfolio is a ‘positive’ for the company, as it will partially offset margin pressure. The brokerage said Jubilant is in an opportune position to capitalise on the growth prospects for the organised food service industry in India.
Zee Entertainment Deal With Sony Pictures A ‘Win-Win’ Situation
Shares of Zee Entertainment Enterprises Ltd. rose over 2.4% to Rs 357.2 apiece after analysts welcomed the company’s proposed merger with Sony Pictures Network as a ‘non-zero-sum-game’.
Several brokerages have upgraded the stock’s rating and raised target price to account for the positive impact of the merger. The merged entity is set to be the biggest player in broadcasting space, toppling Star from the top spot. The cash ammunition due to the merger could result in an intensified foray into the OTT space, challenging the global peers like Amazon, Disney and Netflix.
The definite agreement signed by Zee to merge its linear networks with Sony Pictures would result in material synergies while easing the governance concerns as Sony Pictures will have dominance in the ‘to-be’ constituted board of the merged entity, they added.
Of the 22 analysts tracking the company, 17 maintained ‘buy’, four maintained ‘hold’ and one maintained ‘sell’ recommendation. The overall consensus price of analysts tracked by Bloomberg implied an upside of 5.5%.
Great Eastern Shipping Jumps The Most In Nearly Four Months
Shares of Great Eastern Shipping Co Ltd. rose 9.26%, the biggest intraday gain in nearly four months, to Rs 299.7 apiece, after the company said it will consider a proposal to buy-back fully paid-up equity shares on December 27, in an exchange filing post market hours Wednesday.
Trading volume on the stock was 61.3 times the 30-day average volume, for this time of the day.
Day Trading Stocks [23-12-2021]
- National Aluminium Company or NALCO: Buy at CMP, target ₹106 to ₹110, stop loss ₹99
- Manappuram Finance: Buy at CMP, target ₹168 to ₹170, stop loss ₹157
- Housing Development Finance Corp or HDFC: Sell at ₹2540 or above, target ₹2500 to ₹2470, stop loss ₹2566
- HDFC Bank: Sell at ₹1444 or above, target ₹1400, stop loss ₹1466
- Aurobindo Pharma: Buy at CMP, target ₹735, stop loss ₹708
- Crompton Greaves: Buy at CMP, target ₹429, stop loss ₹409.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Neal Bhai.
Jubilant Foodworks Jumps As Morgan Stanley Expects Price
Shares of Jubilant Foodworks Ltd. rose over 4%, the biggest single day gain in over two months, to Rs 3,570 apiece after Morgan Stanley reiterated its ‘overweight’ rating.
- The brokerage expects the increase in prices by Domino’s to offset margin pressure.
- Morgan Stanley says Jubilant Foodworks is in an ‘opportune position’ to capitalise on growth prospects in the sector.
Of the 30 analysts tracking the company, 19 maintained ‘buy’, nine maintained ‘hold’ and three maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 17.4%. Trading volume on the stock was 6.1 times the 30-day average volume, for this time of the day.
Opportunities Ahead
Despite expensive market valuations and the potential decrease in the ease of making money, Kotak said earnings growth in many stocks and sectors will provide investment opportunities next fiscal.
“The recent market correction provides investment opportunities in quality large- and mid-cap stocks,” it said. The research firm sees banking, financial services and insurance; metals and mining; and oil and gas sectors to do well in the first three months of the new year.
Starting April, however, it expects 95% of incremental growth to primarily come from automobiles nd technology, apart from BFSI and oil and gas.
