Centrum Broking gives ‘buy’ call for Container Corp, Polycab India, Axis Bank

New Delhi, Jan 26 (IANS) Brokerage firm Centrum Broking has given a ‘buy’ call to potential investors for shares such as Container Corporation of India, Polycab India, and Axis Bank.

For Container Corporation of India, it has kept the target price at Rs 737 per share by FY23-FY24, against the current price of Rs 620.

“Concor’s domestic business is on a strong growth trajectory led by incremental cargo in commodities like cement, foodgrains, industrial salts, etc.,” it said.

The company’s robust cash flows continue to support its elevated capital expenditure spending, leading to a debt-free balance sheet.

“This puts it in a position of strength to benefit from an expected growth resurgence and to take advantage of emerging opportunities in the sector. A structural and positive change in Indian Railways’ approach towards freight and DFC-led growth resurgence support the stock’s premium valuations,” it said.

For the cable and wire maker Polycab India, the target is pegged at Rs 3,000 per share in the same horizon, against the current price of Rs 2,485.

Sequential growth in margins is a key positive sign for the company, it said.

The target price for Axis Bank is set at Rs 970, against the current Rs 750 per share.

“Axis Bank’s earnings were a beat on all fronts, i.e., loan growth, NIM (net interest margin) and asset quality. Loan growth was stronger at 16.7 per cent YoY (est. 11 per cent) with healthy traction seen sequentially across retail, SME and corporate,” the brokerage house said.

Besides, for cement producer Ramco Cement, the brokerage has upgraded the stock from ‘sell’ to ‘add’ with the target price at Rs 994. It is currently trading at around Rs 856 per share.

“The outlook is improving with higher demand and prices coupled with softening of fuel prices in Q4FY22. Increasing utilisation of existing assets (19.4mtpa) and incremental 1mtpa grinding unit in Q1FY23 will help TRCL to deliver 23 per cent YoY volume growth to 14.2 mt in FY23,” it said.

–IANS

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