“Normal monsoons, firm crop and dairy prices to enable eventual pick up in rural demand, timing remains a tad uncertain due to inflation. Prabhudas Lilladher highlighted that India has been able to keep another covid wave at bay - a positive for the economy and markets. While issues such as geo-political tensions, inflation in India and major economies, and Rural slowdown continue to clamp down on growth, there are plenty of positives ahead. “We remain positive on India growth story given strong tailwinds and expect steady returns with stock specific approach,” analysts said. Here, Nifty is valued at 10% premium to 10-year average (22.6x).īear case scenario would see Nifty trading at 20% discount to LPA with a target of 16,046 (15052 earlier at 25% discount). However, the bull case target is much higher, pegging the 50-stock index at 22,063 against 21,073 - the previous bull case target. This has been upped from 19,066 that Prabhudas Lilladher had set earlier.
In the base case scenario, analysts value Nifty 50 at 10-year average PE (20.5x) with March 24 EPS of 978.4 and arrive at June 23 target of 20,057. Will bulls stage a comeback or bears to drag Nifty below 17300? 5 things to know before market opening bell In the last three corrections, the Nifty 50 index, has bottomed out around 10-year average PE except in March 2020, when it bottomed out at 23% discount to the 10-year average. NIFTY is currently trading at 19.9x 1-year forward EPS which is at 5% discount to 10 year average of 20.5x,” they said. “Our estimates are lower than consensus by 3.9/5.0% for FY23/24. Prabhudas Lilladher noted that Nifty EEPS has seen only minor tweaks in the current quarter with 13.2% EPS CAGR over FY22-24 with FY23/24 EPS of Rs 857.9 and 978.4. The target price set for June 2023 by Prabhudas Lilladher would see Nifty 50 rise 15% from current levels. Nifty 50 index has climbed 14% from the lows on June helped by positive foreign fund inflows. We suggest accumulating fundamentally strong companies with business moats in uncertain times,” analysts said in a note.
“Festival demand from urban middle class is expected to remain strong, which will enable good 2Q and 3Q will show benefits of correction in commodities. Analysts see multiple tailwinds for stock markets, barring the near-term volatility. NSE Nifty 50 index target has been raised to 20,057 by analysts at domestic brokerage and research firm Prabhudas Lilladher.
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