Ahmedabad, 16 May
Stock in Focus: BEML (CMP 1,414)
BEML is the biggest beneficiary of the ongoing metro capex in India, with a market leadership in metro coaches. There is a rapid increase in demand for urban mass transportation systems in the country. Metro rail works (including brownfield expansion) will be carried out in more than 20 cities in India over the next couple of years. We believe BEML is well-placed to capitalize on the imminent opportunities in mining, defence and railway & metro segments. Looking ahead, we expect the company is likely to witness 10% CAGR in order inflows over FY22-FY25E, which would translate into revenue, EBITDA and PAT CAGR of 12%, 16% and 27%, respectively. We expect its EBITDA margin at 6-7% over FY22-FY25E. Considering strong opportunities across segments, healthy earnings growth and margin expansion, we have our BUY rating on the stock with a Target Price of Rs2,100.
HCLTECH (PREVIOUS CLOSE: RS1,100) BUY
For today’s trade, long position can be initiated in the range of Rs1090- 1095 for the target of Rs1125 with a strict stop loss of Rs1080.
TATASTEEL (PREVIOUS CLOSE: RS108) BUY
For today’s trade, long position can be initiated in the range of Rs106- 107 for the target of Rs110 with a strict stop loss of Rs105.
BRITANNIA (PREVIOUS CLOSE: RS4,631) SELL
For today’s trade, short position can be initiated in the range of Rs4650- 4700 for the target of Rs4520 with a strict stop loss of Rs4750.
(Market lens by Reliance Securities)
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)
(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ, ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)