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HDFC Securities in November gave a ‘buy’ rating on Symphony with a price target of Rs 1,812.

Updated: Dec 11, 2019, 09.22 AM IST
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With a 2,16,860 per cent rally, Symphony emerged as top grosser, jumping to Rs 1,095.70 as of December 6, 2019 from an adjusted price of Rs 0.50 as of December 29, 2000.
Dalal Street produced many multibaggers since the beginning of this century despite challenges in the form of the global financial crisis, liquidity crunch, credit crisis and a slowdown in the domestic economy.

While 173 stocks in the domestic equity market multiplied wealth by over 10 times between January 2001 and December 2019, a couple of stocks stood out and rallied up to 2,00,000 per cent.

With a 2,16,860 per cent rally, Symphony emerged as top grosser, jumping to Rs 1,095.70 as of December 6, 2019 from an adjusted price of Rs 0.50 as of December 29, 2000.

This would have turned an investment of just Rs 10,000 in Symphony into around Rs 2.17 crore in 19 years.

Brokerage HDFC Securities in November gave a ‘buy’ rating on Symphony with a price target of Rs 1,812.

“Symphony continued its strong momentum in the second quarter after a sharp recovery in the summer of 2019. The second quarter performance was in line with expectations and further builds our confidence for a robust H2FY20 show. We remain bullish on Symphony given its sharp recovery in domestic business and the scope to tap new opportunities (industrial and commercial cooling, portable coolers in Aus and US). We believe the stock will get a re-rating, owing to consistent outperformance versus appliance companies,” HDFC Securities said.

For the quarter ended September 2019, the company posted a net profit of Rs 57 crore, up 67.65 per cent from Rs 34 crore reported for the same period last year. Net sales increased 31.75 per cent YoY to Rs 195 crore during the quarter under review.

NBFC major Bajaj Finance and pesticides and agrochemical player UPL are the next big gainers in the list. Where the former rallied 1,53,459 per cent, the latter advanced 1,15,318 per cent during this period.

Bajaj Finance recently posted a 63 per cent year-on-year (YoY) rise in net profit at Rs 1,506.29 crore for the quarter ended September 2019. The NBFC had posted Rs 923.47 crore profit for the corresponding quarter last year.

As of December 9, the stock had 9 ‘Buy’, 6 ‘Outperform’, 8 ‘Hold’ and 1 ‘Underperform ratings to Bajaj Finance, according to data available with Reuters.

6 stock recommendations from global brokerages

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Morgan Stanley maintains underweight on RBL Bank with a target price of Rs 240 per share. The brokerage cited the asset quality outlook behind the underweight rating on the stock. The brokerage suspects a build-in higher slippages and credit costs for the bank while rising share of unsecured loans is another key factor to watch.

UPL, which was on an acquisition spree in recent years, had in November announced another deal, involving Yoloo (Laoting) Bio- technology, a Chinese agrochemicals firm, for a reported consideration of around Rs 95 crore.

In July 2018, the company announced its largest acquisition of the US-based Arysta LifeScience for $4.2 billion, catapulting it to the league of top five agrochemicals players globally with over $5 billion in combined revenue and around $1 billion in pre-tax profit.

Brokerage Nirmal Bang Securities maintained a ‘Buy’ rating on UPL post Q2 results with a price target of Rs 665.

“In the near term, the stock may remain subdued due to weak growth, the US litigation and concerns over shifting goal posts on merger synergies post Arysta merger, especially those from revenue. We, however, maintain a ‘Buy’ rating based on the long-term growth prospects, once the combined UPL–Arysta portfolio starts delivering the full potential as expected by the management,” Nirmal Bang Securities said in a report last month.

Auto and auto ancillary players Balkrishna Industries (up 98,777 per cent) and Eicher Motors (up 75,996 per cent) stood among other top five gainers in the list.

Balkrishna Industries reported a consolidated net profit of Rs 294.31 crore in Q2FY20 against Rs 210.30 crore in the same period last year. However, the company's revenue declined 17 per cent YoY to Rs 1,084.28 crore in Q2FY20.

Chola Securities in November gave a ‘Sell’ call on Balkrishna Industries with a price target of Rs 790 due to muted demand outlook and return on equity of less than 20 per cent.

On the other hand, Asian Market Securities recently initiated coverage of Balkrishna with a target price of Rs 989.

Established in 1987, Balkrishna Industries started as an automobile tyre manufacturer and entered high margin off-highway tyres (OHT) business in 1995.

Eicher Motors owns one of the oldest motorcycle brands in the world – the Royal Enfield (RE) – a brand that is also the market leader in the Indian super-premium motorcycle (over 250 CC) category. It also has a JV with Volvo for the commercial vehicle business in India.

RE is witnessing demand weakness for the first time since its renaissance in 2008, as it is in a perfect storm with weak industry environment, substantial cost inflation and a new competitor. After witnessing severe headwinds during the past 12 months, volumes to recover gradually from here on, according to Motilal Oswal Financial Services.

The brokerage has a ‘Buy’ rating on Eicher Motors with a target price of Rs 25,000.
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