Indian stock markets rallied on Tuesday, October 13, with the Sensex rising 1.5%, or 1,109 points, to close at 73,033, while the Nifty 50 gained 1.6%, or 358 points, to settle at 22,721.95. Gains in IT and banking heavyweights supported the benchmarks. The Indian rupee strengthened 62 paise to 95.16 against the US dollar in early trade after the RBI announced additional measures to ease pressure on the currency. Meanwhile, Brent crude futures fell more than 1% to around $105 a barrel amid prospects of additional diesel supplies from Russia.
Brokerage Monarch Networth Capital has identified two stocks — Ramkrishna Forgings and TCPL Packaging— with potential upside of up to 16% and 20%, respectively, based on its research assessments.
While Ramkrishna Forgings offers an earnings-led investment case built around business diversification, higher capacity utilisation and improving profitability, TCPL Packaging presents a technical trading opportunity supported by bullish momentum indicators. The brokerage has set a target price of ₹806 for Ramkrishna Forgings, while its technical analysis identifies a target range of ₹4,900– ₹5,300 for TCPL Packaging.
Monarch Networth Capital has initiated coverage on Ramkrishna Forgings with a Buy rating and a target price of ₹806 per share, implying potential upside of 16% from the closing market price of ₹694.20.
“RK Forgings is transitioning from a predominantly CV-cycle-led forger into a diversified mobility and industrial platform, with PV, railways, O&G, a rebalanced export book and utilization of its 333,400MT forging and 78,600MT casting base driving the next leg of robust earnings growth. The more important change, however, is the earnings mix: Europe currently accounts for >40% of exports, but this is expected to normalize to ~30-40% as US exports recover, railway revenue has macro tailwind and new products driving growth, machining intensity is increasing, and new PV, cold-forging and aluminum programs are broadening the addressable market,” said the brokerage