Price Action: Meesho, Sansera Engineering gain 5-6% as brokerages retain ‘buy’ rating

Reports coming in for today mention that Stock-specific action remained in focus on Dalal Street on September 22, with market participants reacting to corporate developments and research firms view.

Shares of Blue Star eased 2 percent after Jefferies kept 'hold' rating with target price ₹1,635. The rising commodity costs and a weak indian rupee keep pressure Q2 margins, while H2 margin recovery is anticipated from potential price hikes and cost-cutting measures. The September quarter has a weak base due to GST-led demand deferment last year. The brokerage anticipates Blue Star's data-centre business to contribute around 20% of sales by FY29, compared with around 10% in FY27. The stock trades at 47x 1-year forward PE, around 7% above its five-year historical average.

Reliable Data Services stock price further noted 4 percent after board approved a proposal to mobilize funds of up to Rs 200 crore for various upcoming projects, the upgradation/expansion of existing projects, and enhancement of the firm's working capital requirements.

Meesho stock price jumped 5% after UBS kept 'buy' rating on Meesho and boosted target price to ₹260. UBS has boosted its FY29-31 NMV estimates by 7-18%, with contribution earnings estimates increasing similarly, while EBITDA estimates have been boosted by 20-40%.

Sansera Engineering stock price advanced 6% after Goldman Sachs maintained 'buy' rating and boosted target price to ₹4,990. Goldman Sachs stated Applied Materials and LAM Research's announced investments of $5 billion and $1.2 billion, respectively, in India to build supplier ecosystems could be potential long-term expansion contributors to Sansera Engineering's elevated-margin ADS business. The brokerage stays positive in the context of Sansera's $180 million semiconductor order win from an existing customer and has boosted its FY29 EPS estimates to partially capture the potential upside from the development.

On the sectoral front, the IT index declined nearly 1%, while realty indices rose around 0.6%.

The broader market were trading elevated, with the Nifty Midcap 100 index further noted 0.3%, while the Nifty Smallcap 100 index rose 0.25%.

Market breadth on the BSE was positive, with 2171 shares advancing, 1258 declining and 188 unchanged.