Brokerage Favorite Stocks: Sentiment of some stocks has strengthened after the December quarter results.
Brokerage Favourite Stocks: These days new records have been kept in the stock market. The SENSEX has also crossed the 52500 mark. Super rally continues in the market from November to last year. At the moment, experts are also expressing concern about the valuation of the market. Despite the current pressures in the economy, this market rally is raising their concern. In such a situation, they are asking investors to invest only in fundamentally strong stocks. Following the December quarter results, there are some such stocks on which the confidence of brokerage houses has increased. These include NTPC, Titan Company, Ashok Buildcon and Dhanuka Agritech. In these, you can get up to 48 percent return in the next 1 year.
NTPC Limited is a public sector company in the electricity generation and allied activities business. NTPC’s December quarter sales grew 4 per cent year-on-year to Rs 24500 crore. Whereas PAT has increased by 10 per cent on an annual basis to Rs 3300 crore. In the first 9 months of the financial year, coal PLF stood at 62 per cent, compared to 69 per cent in the same period of the previous financial year. But still it is better than the industry average. The company plans to increase the 5.5GW capacity in the current financial year. Currently, the stock is at an attractive valuation of Rs 98. Brokerage house Dolat Capital has suggested an investment in the stock with a target of Rs 145. According to the current price, it can get 48 percent return.
The Titan Company’s revenue grew nearly 17 per cent year-on-year to around Rs 7287 crore. EBITDA grew by 16.7 per cent on an annual basis. PBT has also grown at 10 per cent. However, the profit has fallen by about 11 per cent on an annual basis to Rs 419 crore. The company’s EBITDA margin stood at 11.8 percent. The company’s jewelery sales in the third quarter increased to Rs 6589 crore as compared to Rs 5409 crore in the third quarter of last year. However, sales of watch and eyeware have decreased. Brokerage house ICICI Direct has advised to invest in the stock with a target of Rs 1830. In terms of current price of Rs 1472, the stock can get 24% return.
Ashok Buildcon is an infra company. The company has a good track record of completing the project. Ashok Buildcon’s performance in the December quarter has been muted. The company’s revenue and margins were lower than expected. However, due to the lockdown, there has been a delay in the project. Work on the project is commencing with the lockdown opening. Labor force is now coming to pre covid level. Work is starting on a new project, while new orders are also in the pipeline. Further growth of the company is expected. Brokerage house Prabhudas Liladhar has given a target of Rs 160 in the stock. In terms of current price of Rs 116, the stock can get 38 percent return.
Dhanuka Agritech is India’s leading pesticide and agrochemical company. The company’s product portfolio is diversified. Brokerage house MK Global has suggested an investment in the stock with a target of Rs 910. In terms of current price of Rs 753, it can get 21 percent return. The company has grown by 21% / 27% in EBITDA / PAT. The company’s results have been better than expected due to increased cast control and gross margin. Management commentary has been positive and strong growth is expected ahead.
(Note: Investment in shares is advised based on the report of the brokerage house. Seeing the risk of the market, take the opinion of experts before investing.)