Sharekhan Assigns Buy To Mid Cap Stock, Downgrades Small Cap Stock To Hold

Brokerage firm Sharekhan has assigned buy call to mid-cap stock, Can Fin Homes and hold call to small cap stock, Gland Pharma. The brokerage firm has downgraded Gland Pharma to hold with a target price of Rs 1689 apiece. The brokerage has given buy call to Can Fin Homes with a target price of Rs 670 apiece and a potential return of 26%. Check key details below:

1. Buy Can Fin Homes With Price Target Of Rs 670

The last trading price of the mid cap stock is Rs 535 apiece with intraday gain of 0.92%. Sharekhan has recommended investors to buy Can Fin Homes with a target price of Rs 670 apiece and a potential return of 26%.

The company has a market capitalisation of Rs 7125 crore. The stock has given maximum 35% return in last 3-years. The shares have rallied 12% in last 3-months. The mid cap stock operates in NBFC sector.

According to Sharekhan, "The company navigated the stiff competition from banks and is moving towards a strong growth trajectory. Can Fin Homes also enjoys strong parentage and superior credit ratings, which enables it to raise funds at lower costs. We expect Can Fin Homes to deliver ROA/RoE of ~1.9/~17% over FY2022-FY2025E. In addition, we believe management is cognisant of hiring a professional from the private sector as its MD and CEO, which could lead to re-rating of the stock."

Key Risks: Economic slowdown may impact its growth trajectory and may result in asset quality deterioration. The spread may further contract given competition from banks in the home loans segment.

2. Hold Gland Pharma With Price Target Of Rs 1689

The last trading price of the small cap Pharmaceuticals stock is Rs 1576 apiece. The company has a market capitalisation of Rs 25,958 crore. The stock has fallen 59% in last 1-year.

Sharekhan has suggested investors to hold the stock of Gland Pharma with a target price of Rs 1689 apiece.

According to Sharekhan, "We value the company's shares at 17.6x (27% discount to its two-years' historical PE), while applying it on FY2025E EPS. As such, we reduce the price target (PT) to Rs. 1,689 and downgrade the rating from Buy to Hold as, at the CMP, the stock indicates an upside potential of 11.1% only."

Key Risks: Delay in product approvals or the negative outcome of facility inspections by the USFDA can affect future earnings prospects and delay easing of input prices.

Disclaimer

The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.