3 banking and finance shares to buy now that Budget 2020 is over; check target prices

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February 04, 2020 1:13 PM

According to analysts, there are few stocks that could be a good buy for the investors after the Union Budget presentation. Given below are three finance stocks on which brokerages are bullish.

Sensex, Nifty, ICICI Bank, IDFC First Bank, Bajaj FinanceThe domestic equity market indices went for a free fall on Budget day, where Sensex plummeted around 1,100 points and Nifty, too, closed at 11,661 points

Indian stock markets reacted negatively to the Union Budget, presented on February 1, as it failed to meet the expectations of the market participants. The domestic equity market indices went for a free fall, where Sensex plummeted around 1,100 points and Nifty, too, closed at 11,661 points. However, according to analysts, there are few stocks that could be a good buy for the investors after the Union Budget presentation. Given below are three finance stocks on which brokerages are bullish. They have recommended to ‘buy’ these stocks with up to 15 per cent upside.

  • IDFC First Bank – BP Wealth has recommended to buy IDFC First Bank with a target price of Rs 47. “In Q3FY20, bank’s operating expenses increased due to opening up of new branches, brand improvement and business sourcing with a cost to assets being at 3.9% in annualized terms. IDFC First Bank ‘s strong management and its proven track record remain a key factor to look for.  We, therefore recommend a BUY on the bank with a target price of Rs 47, ” BP Wealth in a research note said. IDFC First Bank shares were trading 2.68 per cent higher at Rs 40.25 on the BSE.
  • Bajaj Finance – Anand Rathi Shares and Stock Brokers has given a ‘buy’ rating to the stock with a target price of Rs 4,818, an upside of nearly 11 per cent.  “A well-diversified credit portfolio, focus on cross selling, customer acquisition, systematic expansion in delivery channels both physical and virtual, and distribution of products through these channels are likely to sustain robust growth in AUM going forward. We reiterate our coverage on Bajaj Finance Ltd with a BUY rating and target price of ₹4,818 per share,” the brokerage company said. Shares of Bajaj Finance were trading 3.06 per cent at Rs 4,495 apiece on BSE in Tuesday’s session. 
  • ICICI Bank – ICICI Bank is strongly positioned in most of the retail banking products along with the diversified nature of its loan portfolio. Anand Rathi Shares and Stock Brokers has given a buy rating to this stock with a target price of Rs 613. ” With improving asset quality and better growth trends, we believe ICICI Bank is favourably positioned to deliver superior profitability and return ratios. We have factored in the latest information into our model and revised our estimates. We continue to remain positive on the company over medium to long term perspective,” the brokerage company said. ICICI Bank shares were trading around 3 per cent higher at Rs 530.75 apiece in Tuesday’s session.

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