Mid and small caps can still rally 20% from here: Rahul Shah, MOFSL

Concerns about the impact of elevated inflation and Covid-19 outbreaks on economic prospects kept Indian stocks under pressure on Monday.

The benchmark S&P BSE Sensex declined 670 points to trade at 52,468 levels while the Nifty50 started with a 183-pt cut at 15,735 in afternoon trade. In the broader market, the BSE MidCap index slipped 0.33% while the SmallCap index was flat.

Rahul Shah, Motilal Oswal Financial Services said, “We have been in a bull market for a long time and some sort of a correction is likely to take place. I believe there could be a global correction. I am very cautious on the small and penny stocks which have started to move up substantially. Investors should completely avoid this. I am still bullish on mid and small cap stocks which can rally 20% in the next one year”

Motilal Oswal Financial Services has initiated coverage and assigned a BUY call on Burger King with a one-year target price of Rs 210.

“Burger King will enjoy an attractive opportunity for both topline and margin expansion, led by a big shift in its business model through the introduction of ‘barbell’ product strategy and BK Café. In addition, aggressive store network expansion and capped royalty rate will also be key drivers of EPS growth,” the brokerage said in its coverage initiation report.

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