BEL, Bajaj Finance, Yes Bank, Coal India, Bank of Baroda…Super 8 money making stocks – Markets

The stocks advised to keep on the radar of investors on Tuesday, January 6 include names like Bajaj Finance, Yes Bank, M&M Financial Services, Coal India and Bharat Electronics. The brokerage has given its view on these stocks. What strategy investors should adopt on these shares based on the news has also been discussed. According to brokerage reports, select opportunities remain in the financial and industrial sectors. It will be important for investors to keep an eye on factors like AUM growth, NIMs, credit cost and sectoral demand.

How will Nifty move? What should be the strategy of investors?

Prithvi Finmart’s market expert Harish Jujare, while giving his outlook on the future movement of the stock market, said that the market trend is still positive, in which the immediate support is at 26,200. He said that on the upside, 26,350 could act as resistance. He advised investors to focus on identifying quality stock-specific opportunities across sectors, keeping in mind favorable risk-reward dynamics.

Bajaj Finance

According to Citi, Bajaj Finance’s consolidated AUM has grown 22.1% year-on-year and 5.1% quarter-on-quarter, which is in line with estimates. New loans increased by 14% on a quarterly basis to Rs 1.39 crore, although the pace of annual growth slowed down slightly. The brokerage expects NIMs to remain stable, fee income to grow by 13–15% and credit costs to remain below 2%.

Citi expects Yes Bank’s advance growth to be 5.2% annually and 2.9% quarterly, which is lower than earlier. However, yield pressure may be offset by CRR cuts, re-pricing of term deposits and reduction in RIDF drag.

A modest recovery is possible in NIMs, fee income may remain stable and there are no signs of any unusual stress in credit costs and slippages.

Coal India

Morgan Stanley has given a target price of ₹ 410 while maintaining Equal Weight rating on Coal India. Allowing direct participation of neighboring countries in the auction is considered positive, which can improve volumes and realization from e-auction. However, further performance will depend on demand, coal stocks in thermal power plants and the share of private miners.

M&M Financial Services

According to Citi, the company’s disbursement growth was 7% annually and 30% quarterly, which was better than estimates. AUM growth has slowed down somewhat. Mild upside is possible in NIMs, while operating expense ratios may rise.

Devyani International

Citi has maintained Buy rating and target of ₹182 on Devyani International. The merger with Sapphire is considered a strategic positive, which is expected to generate synergy of approximately 2.5% in EBITDA.

Bharat Electronics

Keeping a constructive stance on the industrial sector, Citi has named Bharat Electronics (BEL) as its top pick. The brokerage has said that demand is likely to remain strong due to defense capex and select private capex.

cummins india

Brokerage Citi has also highlighted Cummins India as one of the top picks. Citi believes demand is expected to remain strong across key capex themes, although infra and industrial cycles are in consolidation.

Bank of Baroda

According to brokerage Citi, Bank of Baroda’s advance growth was more than 5% quarterly and 14.5% annually, which is better than expected. The report said NIMs may remain at the lower end of guidance, but overall performance is said to be strong.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.