CMP: 1713 1 Year TGT: 2100 (+22.5%)
Large deals win is the key strength of the company where high revenue growth is visible. Despite the slowdown in the BFS segment, overall growth remains strong and now we are expecting revenue growth from the BFS segment to improve as global growth is likely to improve in FY21. It is maintaining ROE of 34% for the last 3 Years.
Technically, the overall texture of this counter is bullish where after a long period of consolidation it is preparing to break out in the upside with a double bottom formation on a weekly time frame where we can see the level of 2100 in the year 2020.
State Bank of India
CMP: 337.8 1 Year TGT: 425 (+25.75%)
The pace of NPA resolution through the IBC process has improved which will be a key driver for the profitability growth of the company. It will be one of the most beneficial lenders if economic growth witnesses any uptick amid the low-interest-rate environment. Other than its core performance, its subsidiaries like SBI life, SBI MF, SBI cards and SBI cap witnessed excellent growth and the company is on the path of monetization of subsidiaries which would lead to further value unlocking for shareholders.
Technically, the stock was in a trading range for the last 10 years and now there is a good chance that it may break out in the upside which may lead a big rally in this counter in the coming years where the target of 425 is easily achievable in 2020.
CMP: 516.8 1 Year TGT: 700 (+35.5%)
It is one of the fastest-growing private banks which is maintaining a healthy ROE of around 20%. Merger with Gruh finance to aid superior business growth and cost synergies in the business. Healthy advances growth along with the low operating cost is the key strength for the bank. After establishing itself as a microfinance player and subsequently obtaining a banking license, it now enjoys the opportunities of CASA, fees, and leverage which is not available to most non-banks.
Technically, After a meaningful correction, it is finding strong support around 450 area and it is moving in the upsloping channel where after taking support at the lower trendline, it is preparing for a move towards the upper trendline which is placed around 700 level.
CMP: 1599 1-Year TGT 2000 (+25%)
Their core petrochemical business is doing very well and apart from core business their two growing segments Jio and Retail is doing an excellent job to help companies overall performance. IPO of Jio and Retail business will be big value unlocking for investors which will keep share price uplift in the coming year. Worry of high debt is out of the window after management announces stake sale to Saudi Aramco in its refining and petrochemical business.
Technically, The counter is in strong bullish momentum which is likely to continue for the target of 2000+ in the coming days where any small dip will be a great buying opportunity in this counter. There are series of bullish flag patterns to push bullish momentum higher and this texture is likely to continue.
CMP: 194.35 1-Year TGT 240 (+23.7%)
The company has a strong order book and witnessed stellar revenue growth in the last financial year. It has an excellent track record of early execution of projects and debtors days have improved significantly. Management has revised upwards its revenue growth guidance to 50-60% for FY20. The debt to equity ratio is at a very comfortable level despite having a strong order book growth.
Technically, After breaking out downsloping channel it is continuing its upward journey where it has outperformed the midcap index. In the downside 200-DMA of 180 has become a strong base while in the upside it is likely to break out the previous high of 228 where 240 would be the next target.