The target implies an upside of 10.46% from current levels. The 30-stock Sensex was down 58.27 points or 0.2% at 26705.19 points.
Sandeep Muthangi, research analyst at IIFL held a similar view, and added that the headwinds are not because of pricing but due to seasonal costs.
The stock is trading at 22.17 times year forward earnings and 15 of the 20 analysts tracking the company have a ‘buy’ rating on it, Bloomberg data showed.
Macquarie has cut its December 2016 target for the benchmark Nifty index to 8800 points from 9200 points earlier amid concerns over high valuations.
The anchor investors included Birla Sun Life, ICICI Prudential MF, Reliance MF, UTI MF and HDFC Standard Life Insurance. The minimum holding period for these investors was 30 days.
The target price reflects the increase in EBITDA estimate for the current and the next financial year by 13% and 17%. On Monday, the stock ended at Rs 13,900.
Markets would not respond well if Rajan is not given second term, he is rightly deemed as one of the best governors in the world, says El-Erian.
Pick up in the reforms momentum with the passage of the bankruptcy code recently and positive initial forecast on monsoons is also aiding the positive outlook.
Nomura said the sequential aggregate sales growth ex-commodities and banks was the best in four years in the earnings season for January-March quarter.
Investment bankers say investors are open to investing in these companies because of their stronger growth prospects.
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