Tata Consultancy Services Limited
Analysts predict that factors such as robust demand for newer technologies, record order inflows, customer readiness to commit to long-term transactions, and investment in technology development as well as personnel upskilling will play out in the medium to long term. Furthermore, better margins and cost management, as well as the company’s continued focus on converting prospects to revenue, provide hope for a comeback. Analysts expect its revenue/EBIT to expand at a CAGR of 16.5/19.8% during FY23-25E. Following its Q2FY24 reports, the stock price has undergone a considerable fall, making its value appealing for investment. Accumulate’s recommendation has been revised to Buy, with a target price of Rs 4,089.
The firm will maintain its focus on the ITC Next strategy, which will help in the development of a future-ready portfolio as well as the expansion of the non-cigarette industry, particularly FMCG, through product innovation, renovation, and premiumization. Furthermore, the demerged hotel industry is proceeding according to the company’s strategy, which is encouraging. Overall, the growth prospects remain positive, and the company’s revenue/profitability is expected to expand at a 15%/19.2% CAGR during FY23-25, earning it a ‘buy’ rating and a target price of Rs 535.
Analysts continue to be bullish on Axis Bank, citing its rising asset book, premiumization of deposits, expanding wealth management division, and market position in the credit card category. The bank’s asset quality continues to be strong. Furthermore, the acquisition of premium clients provides the bank with a chance to cross-sell its other products. Analysts anticipate an 11%/15%/9% rise in NII/PPOP/PAT over FY23-25. The bank has a buy rating and a target price of Rs 1,167.
Maruti Suzuki India
MSIL is expected to gain market share in its major areas due to improved product mix and favorable commodity prices, which would eventually help in revenue growth. Financially, it is expected to expand at a CAGR of 18.2%/34.9%/33.5% during FY23 -25. From a value standpoint, it is now accessible at a reasonable price, with a positive risk-to-reward ratio. As a result, we propose a Buy with a target price of Rs 12,714 and a PE of 27x on FY25 EPS.
SBI Life Insurance
Analysts continue to be bullish on SBI Life Insurance due to excellent development in its core businesses, which allows the firm to enhance its market share. Because of the increased quantities of such items in its entire product mix, the firm is well-positioned in the revival of ULIP products. Over the next five years, APE/NBP/VNB are expected to expand at a CAGR of 19%/21%/23%. The business has a buy rating and a target price of Rs 1,644.