The Bombay Stock Exchange (BSE) index closed down by more than a thousand points on Thursday last week. It closed with a gain of over 200 points on Friday.
Investors can buy Asian Paints shares at a target of Rs 1,800, Kasai Nerolac shares can be bought at a target of Rs 500
The Bombay Stock Exchange (BSE) index closed down by more than a thousand points on Thursday last week. However, it closed with a gain of over 200 points on Friday. Despite such huge market fluctuations, you can make a profit by investing in stocks. However, you should choose quality stocks for this.
Advise to buy Divis Lab at target of 3,640
Anand Rathi Financial Services has advised investors to buy Divis Lab’s stock at a target of Rs 3,640. The company further plans to invest on a larger scale. It is also reducing its dependence on raw material supplies from China. The company will invest a total of Rs 1,800 crore. This company is doing well in the API industry.
Advice to buy UltraTech stock at target of 5,210
The same brokerage house has advised to buy UltraTech Cement shares at a target of Rs 5,210. The company has shown a pre-tax profit of Rs 900 per tonne. 70% of its capacity is still being used. The company plans to invest Rs 1,500 crore further. This will expand 1.2 million tonnes of brownfield into Bihar and West Bengal.
Have a good reach in rural India?
The retail volume of UltraTech Cement grew by 13 percent year-on-year. It has good reach in rural India. Its market share in rural India is 13% in the first quarter of FY 2021. Its free cash flow has been Rs 6 thousand crore in the last 9 months and it has also reduced net debt of Rs 2,200 crore. It has bought 3 companies in the last three years.
Advice to buy Reddy’s stock at 6,012
Dr. Reddy’s stock has been suggested to be bought by this brokerage house at a target of Rs 6,012. The company has a good presence in the US market. It also does good business in India, Russia, UK and Germany. Its revenue has been 37% in FY 2020. Emerging markets have 19% revenue, while India and Europe have 17 and 7% revenue. The company has also settled disputes with Bristol’s subsidiary. With this, it is preparing to launch 25 products.
SMC Global recommends buying Tata Consumer Products
Saurabh Jain of SMC Global recommends buying Tata Consumer Products at a target of Rs 555. Its present price is 478 rupees. It can get an advantage of 16%. It is a subsidiary of Tata Group. The company’s portfolio includes tea, coffee, water, salt, lentils, spices and ready-to-cook. It is the world’s second-largest distributor and producer of tea. Its revenue from beverages in the first quarter of FY 2021 has been one thousand crores. Food revenue has been Rs 589 crore and International Beverages revenue has been Rs 867 crore. There has been growth in all segments.
The company will continue to manufacture and supply essential foods and beverages items in the domestic and international markets.
Ramco Cement will gain 18%
Ramco Cement has advised buying this brokerage house at a target of Rs 919. The stock is currently trading at Rs 778. It is expected to benefit 18%. Ramco Cement was earlier known as Madras Cement. This readymix manufactures concrete cement and dry mortar products. It has a capacity of 18.79 million. The company is expanding capacity at a cost of Rs 3500 crore.
Recently it has started operation of new cement unit in Orissa. The company has spent Rs 710 crore on this. Its revenue in FY 2020 is Rs 5,285 crore. It is estimated that by 2022 it will be 6 thousand 28 crores.
HDFC Securities has advised the redemption of shares of D Mart’s parent company, Ave Super Mart. Its target is Rs 1,850. While the current price is Rs 1,800. Actually, the arrival of Jio Mart is expected to have an impact on DeMart. It is estimated that D Mart will open only two stores in the second quarter. Its net profit recovery is expected to decline.
Advice to sell titan stock
Titan stock has been advised to sell this brokerage house at a target of Rs 1,050. It is trading at Rs 950. Titan’s recovery is longer than expected. However, its revenue may fall by 2%. Jewellery revenue is expected to increase by 8.7%. The stock of V Mart has been suggested to be bought by this brokerage house at a target of Rs 1,850. It is trading at Rs 1,800. Regarding V Mart, HDFC Securities has said that there will be a recovery in its revenue.
Advice to buy HCL Tech shares at 970
HCL Tech has been advised to buy HDFC Securities at a target of Rs 970. The stock is currently trading at Rs 827. Its second-quarter results were better than expected. This company is doing well in cloud infra business. Both its revenue and profit in the second quarter increased compared to the same quarter a year earlier.
Apart from this, HDFC Securities has recommended redeeming the shares of Asian Paints at a target of Rs 1800, sell the shares of Berger Paints at a target of Rs 460 and buy the stock of Kansai Nerolac at Rs 500.