Stocks to Buy: ICICI Securities has retained ‘Buy’ rating in two stocks, Power Finance Corporation and RailTel Corporation, after the September quarter results.
Railtel Corp, Power Finance Corporation buy call by ICICI Securities: The valuations of many stocks have improved after the September quarter results amid the ongoing volatility in the market. These also include some stocks of government companies. From the point of view of buying shares, the brokerage house is looking bullish on Power Finance Corporation (PFC) and Railtel Corporation after the results. Brokerage house ICICI Securities has given a buy advice on both these stocks at a discount of Rs 150. The brokerage house has given ‘Buy’ rating on PFC with a target of Rs 191. At the same time, buy advice has been given on RailTel Corporation with a target price of Rs 162.
Power Finance Corporation: 43% return expected
Brokerage house ICICI Securities has given a target of Rs 191 (PFC BUY) for Power Finance Corporation. The share price of the company is around Rs 134 on 16 November 2021. In this way, investors can get a return of 42.53 per cent in this stock from the current price. The stock has shown a rise of about 30 per cent in one year.
ICICI Securities has said in its report that the earnings of this company, working under the Ministry of Power, have improved in the September quarter. The company’s net profit has grown by 32 per cent on a year-on-year basis. The coverage of the company has improved. After the financial year 2022, the company is giving dividend on a quarterly basis. An interim dividend of Rs 2.5 per share has been announced for the second quarter.
Watch dgmartpro here
Railtel Corp: can get 30% returns
ICICI Securities has given a target of Rs 162 (Railtel Corp BUY) for Railtel Corporation. The share price of the company is around Rs 124 on 16 November 2021. In this way, investors in this stock can get a return of 30 per cent from the current price. The brokerage house says that the earnings of the bank have been a good recovery in the second quarter. Retail asset growth was recorded at 7 per cent on a quarterly basis. The recovery has brought down the gross NPAs of the bank.
ICICI Securities has said in its report that the earnings of this company working under the Ministry of Railways have improved in the September quarter. The company’s net profit on an annual basis has been Rs 67.5 crore. The company’s revenue growth has grown by 29 percent on a year-on-year basis. The pipeline project is expected to have a positive impact on the company’s business. The brokerage house has increased the EPS estimate for FY22E/FY23E to 5.3%/4% and the target price to Rs 162 from Rs 156. ‘Buy’ rating is maintained on the stock.
(Disclaimer: The investment advice here is given by the brokerage house. These are not the views of dgmartpro Business. Please consult your advisor before investing.)