An investor looking for stability in the stock price which excludes sudden price movements along with a regular flow of income in the form of dividends generally prefers to invest in Large cap stocks. They not only provide moderate returns but are also highly liquid.
Here are two large-cap stocks that analysts have recommended for an upside of up to 23 per cent:
Bharti Airtel Limited
The shares of Airtel inched 2.6 per cent on Tuesday morning and were trading at Rs 759 levels. In the last five days, the stock has moved up by 5.9 per cent. In a month the stock has gained 7.8 per cent. In a year the stock has delivered a return of 19 per cent.
Jefferies has maintained its ‘Buy’ rating on Bharti Airtel shares with a revised target price of Rs 855 which represents an upside of 13 per cent from the current levels.
“Our Buy rating is based on strong growth outlook from tariff hikes with continued market share gains and favourable risk-reward with limited downside from current levels.”
“Singtel will sell a 3.3% stake in Bharti Airtel to Bharti Telecom, which holds 36% in Bharti Airtel and in which Singtel owns 49.4%. As a result, Singtel’s effective stake will fall by 1.7%. While Mittal Family stake will increase to 25.5% and will bring them closer to equalizing stake will Singtel. We view this positively,” the note stated.
Bharti Airtel Limited, also known as Airtel, is an Indian multinational telecommunications services company that operates in 18 countries across South Asia and Africa, as well as the Channel Islands.
It has a market capitalization of Rs 4,18,568 crores and the promoters hold a stake of 55.93 per cent in the company. It has a dividend yield of 0.41 %.
State Bank of India
The shares of State Bank of India declined marginally in the early hours and were trading at Rs 537 levels. In the last five days, the stock has moved up by 3.2 per cent. In a month the stock has gained 3.28 per cent. In a year the stock has delivered a return of 25 per cent.
CLSA has maintained a ‘Buy’ rating on State Bank of India shares with a revised target price of Rs 660 which represents an upside of 23 per cent from the current levels .
“Credit growth has surprised positively over the past 12 months for the sector. A big uptick has been in NBFCs (27% YoY growth), trade, and other services,” CLSA said.
“SBI outperformed peers by more than 30 ppts over the past 18 months and its current 1.1 times 1-year forward book valuation is getting closer to fair levels now,” the brokerage added.
State Bank of India (SBI), a Fortune 500 company, is the oldest and largest Public Sector Bank in India with a significant market share.
It has a market capitalization of Rs 4,81,393 crores and the promoters hold a stake of 57.57 per cent in the company. The bank has a dividend yield of 1.31%.
Witten by – Anoushka Roy
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