[ad_1]
Photo : iStock
Mumbai: As per analysis by ET Now, almost half of stocks that are tracked by at least 10 analysts have seen a 45 percent upgrade in their target prices for the month of August-after two months of majority of downgrades seen. The data has been compiled in Bloomberg. A total of 309 stocks were taken into consideration for this research. Only 28 percent of stocks saw a downgrade in the target prices, while there were no changes for the remaining 27 percent of stocks.
Consumer discretionary saw an upgrade of six percent in target prices. Sectors such as real estate, materials, communications, industrials and consumer staples also saw un upgrade. Downgrades were seen in technology, utilities, healthcare and energy segments. No changes in target prices were reported for financials.
Amongst the stocks with the highest upgrades-Kansai Nerolac and Minda Corp saw the target price increasing between 24-21 percent followed by ABB India, AIA Engineering and Fine Organic Industries which was between 17-18 percent.
Kansai Nerolac-the largest industrial manufacturer is in focus as declining crude derivatives, pick up in capex and increasing infra-activity augurs well for the company as broking reports suggest. From auto ancillary space-Minda Corp’s management stated that the company will outperform industry by 10-15 percent over next few quarters. Capital goods ABB India and AIA Engineering also expected to a play on rising capex and export theme. From the chemical space, Fine Organics makes the cut due to favorable risk and reward ratios and easing of raw material costs.
Amongst the stocks with the highest downgrades, three out of the top five stocks were from the technology space with names such as Zensar Tech, Birlasoft and Firstsource Solutions which were downgraded between 12-23 percent. Other downgrades were seen in Amber Enterprises and Alembic Pharma which saw a target price cut between 16-19 percent.
IT stocks have been under pressure as global risk on sentiment is still there, lower margins expectation, growth moderation and attrition issues. Amber Enterprises saw a sharp margin contraction in Q1FY23, while for Alembic Pharma margins are expected to be under pressure in FY24 and R&D write-offs have impacted on the financials over the last two quarters as per a note by JM Financial.
[ad_2]
Source link
