Market movers: CLSA continues with ‘sell’ on Bajaj Fin; Jefferies grows bullish on Apollo Hospitals

NEW DELHI: Even as the investor community on Twitter lauded the best ever quarterly profit numbers posted by Bajaj Finance, analysts at CLSA continued their contra stand, recommending selling the stock.

The analysts at the brokerage firm acknowledged that Bajaj Finance delivered a strong quarter aided by the festival season and a rebound from the second wave of Covid, they said its “valuation seems disconnected” to them, especially when compared to other lenders that are seeing a pickup in growth.

They see the stock at Rs 6,500 in the next 12 months, raising the target by Rs 500. The stock on Thursday fell 0.50 per cent to end at Rs 7,534.

Jefferies’ optimism
Jefferies believes the market is not pricing in Apollo Hospitals’ digital business, where it competes with API Holdings (Pharmeasy), Jio-Netmeds, Tata-1Mg and FlipkartSasta Sundar in the digital healthcare space.

Shares of Apollo Hospitals have corrected in recent one month. “Apollo's recent price correction offers an enhanced entry point for the stock. Independent of its digital foray, Apollo is the largest hospital chain and pharmacy chain in India offering a play on branded and organised healthcare,” said analysts at Jefferies.

Following the publication of these views, Apollo Hospitals rose nearly 3 per cent on Thursday to Rs 4635. Jefferies pegs it at Rs 6,006 in the next 12 month.

Microcap gets mega order
Transformers and Rectifiers, a Rs 450 crore company, received orders of Transformers for a total contract value of Rs 73 crore from MP Power Transmission Package - II Limited, which energied investors on a bad day for overall markets.

With this order, the company’s order book as on date stands around Rs 1,068 crore.

The stock surged 6.05 per cent to Rs 36.80. The stock is already up 84 per cent in the last one year.