Shares of vedanta: Global brokers see up to 115% increase in Tata Steel, Vedanta, Gland Pharma

New Delhi: Despite the strong volatility observed in sectors such as metals, mining and pharmaceuticals, global brokerage firms are set on selected stocks from these pockets.

The global brokerage company Citi remains in the mood

maintaining a rating for the purchase of the counter. However, it reduced its target price to Rs 1,085 from Rs 1,800, indicating a 25% increase in the counter compared to its previous closure.

The broker believes that the weakness of China’s export prices will affect the company, which will lead to a decrease in EBITDA by 32-34% against the background of lower sales.



Tata Steel is traded at a P / B value of 0.8x, which is not below its average value of 0.7x. However, stocks may not reach 0.5x levels by 2020, given China’s stimulus expectations.

Another global brokerage company, JP Morgan, remains overweight

with a target price of Rs 499, expecting a 115% increase in the counter compared to the previous close of Rs 232.25.

Vedanta recently put its tuticorin plant up for sale following a backlash from locals over environmental violations. Following the update, shares of Vedanta fell 12% on Monday.

However, JP Morgan believes that the sale of the copper smelter will be a disguised blessing for the company. “LME aluminum prices are returning to Q1FY22 levels, which is a big positive result,” it said.

The Hong Kong-based brokerage firm CLSA is focused on selected pharmaceutical counters, as it believes that Indian pharmaceutical companies with a global footprint will win.

“Companies have expanded their product offerings through both organic and inorganic routes,” said CLSA. He sees a gradual widening of the margin, which leads to an improvement in the rate of return.

He began his reflection on

injection specialist, with a target price of 3,450 rupees per share, hinting at a 35 per cent increase in the counter.

He also started covering

with a buy rating and a target of Rs 710 per share. However, he reduced his target price to Rs 2250 from Rs 2330.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of the Economic Times)

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