Here Are The Top Stock Picks For July By DRChoksey

DRChoksey Research Report

Investment period: six months.

Bajaj Finance - Product diversification and omni-presence strategy supporting strong business momentum

(current market price Rs 7,105 / target price Rs 8,000 / potential upside 12.6%)

We assign a price/adjusted book value multiple of 4.5 times on FY26E adjusted book value of Rs 1,778.0 to arrive at a target price of Rs 8,000 per share.

This implies a left-over upside of 12.6% from the current market price. We have a Buy rating on the shares of Bajaj Finance Ltd. since April 30, 2024.

DCX Systems - Sustained robust revenue growth and margin expansion expected

(current market price Rs 444/ traget price Rs 519 /potential upside: 16.9%)

We expect revenue/ profit after tax compound annual growth rate of 29.6%/ 45.5%, respectively, over FY24 to FY26E. We maintain our multiple of 36.0 times price/earning to FY26E earning per share of Rs 14.4 to arrive at a target price of Rs 519/share, indicating a remaining upside of 16.9% from the CMP.

We have a Buy rating on the shares of DCX System Ltd. since May 22, 2024.

SBI Life - Expanding distribution network to drive growth

(current market price Rs 1,508/ target price Rs 1,705/ potential upside 13.1%.)

We continue to apply a 2.2 times P/EV on FY26E EVPS of Rs 776.2 and a value of new business multiple of 12.4 times to arrive at a weighted average target price of Rs 1,705 per share (unchanged) for SBI Life (50:50 weights on the P-EV and appraisal value methodology).

This implies a left-over upside of 13.1% from the CMP. We have a Buy rating on the shares of SBI Life Insurance Company Ltd. since May 04, 2024.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.