BHARTI AIRTEL
Market cap: Rs 2,62,630 cr
CMP: Rs 481
Bought by HDFC MF
There are four immediate triggers which have convinced analysts and managers alike regarding the attractiveness of Bharti Airtel. Analysts say that the company will be the biggest beneficiary of recovery in average revenue per user as a result of tariff hikes and increasing migration to 4G services of customers from 2G services. Besides, the company has a better balance sheet than its peers. Analysts are also impressed with the fact that the company has constructed more towers and mobile stations in the September 2020 quarter in comparison with the previous quarter. Lastly, the company received the approval to increase FII ownership limit to 100% from 49%. Given this, analysts expect 5-16% in the company’s Earnings per Share (EPS) for the next two fiscals.
COFORGE
Market Cap: Rs 14,043 cr
CMP: Rs 2,318
Bought by: Mirae Asset
IT major Coforge — erstwhile NIIT Technologies — is likely to benefit from its investments in three segments: Cloud, Artificial Intelligence (AI) and data services. In recent months, the company won large deals in BFSI and insurance sectors. Besides, the company’s increasing presence in the healthcare sector is expected to boost its order book and topline in a meaningful way. In the September 2020 quarter, the company’s margins have improved by 180 bps to 17.8%. In the coming quarters, these deals will further improve margins. In the context of these deals, analysts expect 15-30% growth in its earnings per share for the next two fiscals.
BAJAJ FINANCE
Market cap: Rs 2,63,538 cr
CMP: Rs 4,373
Bought by: Axis MF
Increasing disbursements triggered by improving volumes provide strong visibility of revenues for Bajaj Finance. Besides this, low net non-performing loans, highly diversified portfolio, healthy liquidity on its balance sheet, decline costs of borrowings and pricing power offer comfort to analysts and managers. The company’s financial performance in the September 2020 quarter met the street’s expectations. Analysts have raised the company’s earnings per share for the present and the next fiscal in the range of 6-15%
ALEMBIC PHARMA
Market cap: Rs 19,393 cr
CMP: Rs 987
Bought by: Aditya Birla SL MF
Founded in 1907, Alembic Pharma manufactures branded formulations, international generics and APIs for the global market. The company is coming up with three new plants i.e. oncology oral solids & injectables, ophthalmic & new oral solid plant. As at FY20, ANDA filings stood at 183 of which 119 are approved and 76 are launched. Its capex outlay of Rs2,000 crore, a significant part of it being in the final stage of completion will give segments such as oncology, injectables, ophthalmology a boost. As capital investment declines post-2020- 21, we will witness higher cash flow generation and more attractive return ratios, which is attracting analysts to the stock.
