Global brokerages see up to 30% upside in Nykaa, Pidilite and RBL Bank

13 Jun 2022 , 03:01 PM

Equity markets have taken a beating as a result of growing volatility and risk-off sentiments. Despite the heavy selling pressure, foreign brokerage houses are positive on a few Indian stocks, expecting up to 30% gains.

Despite near-term instability and a tough economic environment, Citi expects Pidilite Industries to produce solid medium-term sales and profits growth.

“It has also shown significant pricing power earlier this week and seems to be appealing following the 25% retracement from its top,” Citi said, upgrading the company to a “buy” rating with a target price of Rs 2,440, or a 16 % increase.

CLSA, a major brokerage, has reduced RBL Bank shares from buy to outperform, with a target price of Rs 130, implying a 15% rise from its last closing of Rs 114.45.

“The lender’s main obstacles are leadership change and liability, although its asset quality is controllable. Despite various issues, RBL has accepted R Subramaniakumar as the new MD and CEO of the institution, ” it said.

FSN e-Commerce Ventures, the parent company of Nykaa, has a 30% upside, according to another offshore brokerage, BofA Securities. It has a neutral rating and a Rs 1,885 target price. On Friday (10-06-2022), the stock closed at Rs 1,448. 

BofA Securities maintains its strong conviction in Nykaa’s long-term narrative but warns that inflation might hurt the company’s prospects in the short term.