There are very good prospects in the business of both the companies at this time. So the shares of both can give better returns.
In a constantly falling market, it is becoming difficult for investors to choose such stocks, which have very strong growth prospects. However, Nomura and Edelweiss have recommended two such stocks, which show very strong potential. These stocks are Cipla and Godrej Consumer. There are very good prospects in the business of both the companies at this time. Let us see what is the reason for the possible increase in both the stocks and how much profit is there.
Cipla
Rating- BUY
Target Price – Rs 1051
Brokerage Firm – Nomura
Cipla announced on December 18 that its Lanreotide depot injection has received USFDA approval. Hopefully this product will be launched soon. In the United States, Lanreotide is sold under the brand name Somatuline. No generic product has been approved for this drug. Cipla’s product is not a substitute for the original product but has good opportunities in the near to medium term due to strong volume growth and lack of competition. Cipla can get good market share in the next one year. That’s why Nomura has given it a BUY rating and its target price is Rs 1051.
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Godrej Consumer
Rating- BUY
Target price Rs 1180
Brokerage Firm -Edelweiss
Godrej Consumer (GCPL) has corrected 17 per cent from its top level. The brokerage firm had said that the performance of Godrej Consumer Private Limited in the second quarter of FY 2021-22 will be weak in India and Indonesia and margins will also decline. Although this period is temporary. Godrej Consumer will benefit in future. Actually, there has been a change in the management of Godrej Consumer. Sudhir Sitapati, who has worked at Unilever for 20 years, is its new MD and CEO. Hindustan Unilever’s systems and processes are considered to be of gold standard.
Analysts believe that Godrej Consumer will benefit from their experience. Godrej Consumer is currently in such a position from where it can get very good growth. The domestic business of the company can see a lot of momentum as the management is taking several corrective steps at this time.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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