Motilal Oswal has recently recommended two stocks from the railway and integrated power utilities sectors for investors to consider. Both stocks have demonstrated solid returns over the years, and the brokerage has provided target prices reflecting their growth potential. Here’s a detailed breakdown of the two recommendations:
1. Container Corporation of India Ltd. (CONCOR)
- Target Price: ₹1,050 per share
- Current Market Price: ₹860.70 per share (BSE)
- Market Capitalization: ₹52,441.96 crore
- 1-Year Return: 17%
- 3-Month Return: -12%
- 5-Year Return: 48%
- Recent Financial Performance:
- Q2 FY25: The company reported a 9% increase in profit before tax to ₹526 crore, up from ₹482 crore in the same quarter last year.
- Revenue: Revenue from operations grew by 4.2% to ₹2,288 crore, driven by a 6% growth in cargo volumes.
- Dividend: The company declared a 2nd interim dividend of ₹3.25 per share (65% of face value), with the ex-dividend date set for November 15, 2024, and the payment date scheduled for November 22, 2024.
- Bonus Share History: CONCOR has issued bonus shares four times, the last one being in a 1:4 ratio in February 2019.
- Stock Split History: CONCOR last split its shares in June 2018, reducing the face value from ₹10 to ₹5 per share.
2. Tata Power Ltd.
- Target Price: ₹509 per share
- Current Market Price: ₹449.00 per share (BSE)
- Market Capitalization: ₹1,43,470.75 crore
- 1-Year Return: 80%
- 5-Year Return: 662%
- Recent Financial Performance:
- Q2 FY25: Tata Power reported a 51% increase in net profit, reaching ₹1,533 crore, up from ₹1,017 crore in the same period last year.
- Revenue: Revenue from operations dropped by 1% year-on-year to ₹15,247 crore.
- Stock Split History: Tata Power last split its shares in September 2011, reducing the face value from ₹10 to ₹1 per share.
Summary:
- CONCOR: The stock has been recommended for its consistent performance, including a solid profit increase and the upcoming dividend. With a target price of ₹1,050, it offers a potential upside from the current price level of ₹860.
- Tata Power: A strong performer with impressive returns over the past few years, including a 662% rise in five years. Motilal Oswal has set a target price of ₹509, reflecting continued growth potential despite a slight decline in revenue in the most recent quarter.
Both stocks have been strong performers in their respective sectors, with CONCOR providing a dividend opportunity and Tata Power showing strong earnings growth.
Disclaimer: The information provided is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
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