Quality Stock Tips
The stock market has become almost 53 percent stronger from its March low. On the one hand, cases of coronavirus are breaking records in the country, but its impact on the stock market is not visible. The market is moving towards its record high. However, some experts are avoiding saying anything further about the market. He says that even though the market is booming, but now its valuation has become expensive.
Domestic and global factors are also creating pressure. In such a situation, investors are cautious and are only advising to choose quality stocks. If you too are looking for some such stocks, then we have selected 4 such stocks of choice of a brokerage house. This includes Marico, IRCTC, Alloy Corporation and Tata Motors.
Sensex up 53% since March low
Due to the Coronavirus, there was a huge selling in the stock market in March. All the big or medium or small stocks were beaten fiercely. The market had come down to its lowest levels. On March 23, the Sensex broke down to 25638 levels, while the Nifty also reached the low of 7511.
However, since then, the Sensex has risen 53 per cent and closed at 39,302.85 on Wednesday, 16 September. The Nifty has also crossed the 11600 levels. During this time, many stocks also managed to touch their 52-week high. Lorgescap has contributed the most in this rally.
The lockdown has had a profound impact on the financial performance of IRCTC. The company’s profits and revenue have been affected by the shutdown of most trains during lockdown. The company’s EBITDA / PAT loss stood at 43.90 crore and 24.60 crore rupees in the June quarter. The company will remain under pressure in FY 2021. Many fewer trains are still in operation. Train services will not be fully restored for the next 6 months.
However, now special trains are being increased gradually in unlock. Tran services are expected to be fully operational from next financial year, which will lead to a sharp jump in revenue. IRCTC is increasing its capacity in catering services. Sales / PAT CAGR is estimated to be 12% / 20% per cent for the next 3 years. Brokerage house Prabhudas Liladhar has given a target of Rs 1645 in the stock. In terms of current price of Rs 1367, it can get 20 percent return.
FMCG company Marico expects double-digit growth in revenue in the second quarter. The company’s core brand Parachute Coconut Oil is seeing a good recovery in demand. Sales of this brand have been good in July and August. Safola edible oil is also in good demand and has registered 8–12 percent volume growth.
The company has cut all its expenses, including expenditure on advertising. The company will get profit on demand improvement. Brokerage house Sharekhan has set a target of Rs 420 for the stock. In terms of the current price of Rs 364, it can fetch up to 15 percent return.
#3. Alloy corporation
Brokerage house ICICI Securities has advised investing in Alloy Corporation with a target of Rs 281. In terms of the current price of Rs 208, it can get 35 percent return. Talking about the June quarter, the performance of the coronavirus epidemic has shown on the company’s performance. Profit of the company decreased by 0.94 crores, while revenue declined by 14.11 percent. The company is also hopeful of recovery by further improving the conditions.
#4. Tata motors
Brokerage house Motilal Oswal has advised investing in Tata Motors with a target of Rs 227. In terms of the current price of Rs 151, the stock can get a 50 percent return. The company is on the way of ending the debt gradually. The company aims to be zero debt by the year 2024. The company is reducing its unnecessary expenses. Tata Motors expects a good recovery in revenue in the coming days.
(Note: We have given the details of the shares here based on the report of the brokerage house. Considering the risk of the market, consult the experts before investing.)
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