rbl bank: Why global brokerages see up to 30% upside in Nykaa, Pidilite & RBL Bank

New Delhi: Amid rising volatility and risk-off sentiments, equity market markets have taken a big hit. Despite the severe selling pressure, global brokerage firms are bullish on select Indian counters and see up to 30 per cent upside.

Leading brokerage firm Citi expects

to deliver healthy medium-term revenue and earnings growth, despite near-term turbulence and a challenging economic environment.

“It has also displayed strong pricing power earlier this week and appears to be attractive after the 25 per cent correction from its peak,” said Citi, upgrading the stock to ‘buy’, with a target price of Rs 2,440, signalling a 16 per cent rise.

Another leading brokerage, CLSA has downgraded stock to outperform from buy, with a target price of Rs 130, hinting at a 15 per cent gain from its previous close of Rs 114.45.

“Leadership flux and liability are the key headwinds but the lender has a manageable asset quality. RBI has approved R Subramaniakumar as the new MD & CEO of the lender, despite the several questions,” it said.

Another overseas brokerage BofA Securities sees a 30 per cent upside in FSN e-Commerce Ventures, the parent company of

. It has a neutral rating with a target price of Rs 1,885. The stock had settled at Rs 1,448 on Friday.

BofA Securities has kept its firm belief intact on the long-term story of Nykaa but it says that inflation may dent the company’s prospects in the near term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)