Mindtree: This IT services company’s stock is the most overbought stock among Nifty 500 companies based on technical indicators like RSI and MFI. Over the past 18 months, this stock rose 5.7 times from the lows of March 2020 and is touching new 52-week highs regularly (including on Thursday). Investors only need to look at the company’s average broker one-year target price of Rs 2,440 to get a sense of how much the stock has run up over the past many months.
Cipla: This pharmaceutical company’s promoter group-controlled entities sold a stake (0.73% stake) in the company in the open market for the first time in two years. This comes a couple of months after the stock touched a 52-week high of Rs 997, which is also incidentally its lifetime high. Like other pharmaceutical companies, Cipla also gained from the pandemic and reported revenues above Rs 5,000 crore in three out of the past four quarters. The only time quarterly revenues dipped below Rs 5,000 crore in the past four quarters was in Q4FY21, as a result of which its net profit dipped below Rs 500 crore. Analysts are upbeat about the company’s prospects as can be seen in the average target price of Rs 1,063.5.
Home First Finance: Home First Finance, a technology-based financing company for affordable housing, listed in stock markets earlier this year, and has continued to trade above its issue price post IPO. The company recently received a buy call from Edelweiss with a price target of Rs. 763, an upside of 35%. It delivered a robust 49% AUM CAGR over FY17-FY21 despite FY21 being impacted by the Covid-19 pandemic.
Vodafone Idea: This beleaguered telecom company’s stock is one of the best performing stocks over the past week among Nifty 500 companies, rising 34%, with 25% gains coming on Thursday. These gains come after the Union Cabinet approved a rescue plan for the telecom sector which would ease its cash flows over the next four years. The relief entails moratorium on all dues, including spectrum, spectrum usage charges, and annual gross revenues based levies, and also rationalisation of various levies. This move will enable the company to survive impending doom and help the Indian telecom industry to continue to have three private players.
Poonawalla Fincorp: This non-banking finance company’s Managing Director Abhay Bhutada was banned by the market regulator SEBI from accessing capital markets for a year due to a violation of its insider trading regulations. This relates to trades executed by entities related to Bhutada in the company (previously known as Magma Fincorp) before the announcement of its acquisition by Rising Sun Holdings, controlled by Adar Poonawalla. SEBI held that entities controlled by Bhutada, and seven others, traded in Magma Fincorp’s shares before the disclosure of Rising Sun Holdings acquisition of a majority stake in the company. Bhutada resigned as managing director of the NBFC on Thursday evening.