REC, Zee and NCC among stocks with up to 25% upside
stocks are at yearly or historical highs following the recent run-up in the market. But there is still scope for some of them to move up further from the current levels.
Analysts have raised the price targets of some of the stocks since the beginning of August.
These include REC, Zee Entertainment, Radico Khaitan, Sundram Fasteners, Welspun Corp, NCC, and Eris Lifesciences, among others, where consensus price targets have been raised by 10% to 25% earlier this month.
For instance, the price target of REC has increased by 29% since August 1 to ₹272.6 against the current stock price of ₹244. The company posted a strong set of numbers in the quarter ended June 2023.
Analysts said the stock trades at an inexpensive valuation of 1.06 times book value and a 5.1% dividend yield.
Analysts' consensus target price for Zee Entertainment increased by 24% after NCLT's approval for the Sony-Zee merger. A likely return of foreign institutional interest in the stock, incremental disclosure of merged financials and any potential synergy benefits could be the next triggers, according to analysts who set the new target price of ₹303.
The target price of Radico Khaitan has seen an increase of 18% since August 1.
Analysts said the company management is confident of maintaining high-teen volume growth in the premium segment in FY24. According to analysts, backward integration, price hikes in key markets, easing a few commodity prices, and a better mix will help EBIDTA's margin consistently improve in quarters ahead.
Sundram Fasteners, Welspun Corp, NCC and Eris Lifesciences are the other stocks where analysts have increased their target prices by above 15%.
