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Friday, October 22, 2021

Stock Tips: These 3 shares can give strong returns due to the lockdown opening, but

Engineering & Goods Stocks: Economic activities in the country are slowly on the way to normalization since the lockdown opened. Engineering and capital goods companies are also expected to get the benefit of this. Gradually, the tender activity is increasing, due to which new orders have started coming to companies. There has been good growth in both order and tender in July. However, growth has moderated once again in August. But it is expected that with the start of work on many new projects or stalled projects, it will get faster. This can be beneficial for companies looking in some strong positions. Brokerage house MK Global has suggested investment in L&T, KNR Construction, PNC Infra and Kalpataru Power.

According to the brokerage house, after the opening of the lockdown, tenders are started and companies are also getting new orders. There was spectacular growth in July. Although despite a low base, orders have shown only 13 per cent growth in August on an annual basis. At the same time, the growth in the tender was down 20 percent on an annual basis. But it is much better than April and May. It may get faster in the future.

Many orders were finalized

Many big order finals have been held in August since the lockdown broke. In this, a big order of 2600 crores is to be supplied to Six Pinaka Regiment. This order has come to L&T and Tata Power. In Odisha near VPR Mining Infrastructure, the order of 1300 crores has been received from the coal sector. Apart from this, many big orders have been finalized or are on the way of being finalized.

Tenders received from the railway, roadways placed orders

The tendering activity is the highest pick in the railways. There has been a growth of 144 percent on an annual basis. However, it has decreased in irrigation and road. The growth in tender activity so far has been 62 per cent in FY 2021, although this is due to the low base. The awarding activity has seen a 21 per cent growth from roadways on an annual basis. It has grown more than 3.5 times on an annual basis from the real estate too. There has been a decrease in the armed activity from the railways.

Which shares can get returns

L&T

Target: Rs 1380
Current Price: Rs 915
Return Estimate: 50 percent

According to the report, L&T has a medium-term pen. But the company’s position is looking better in the coming days. The order book of the company is better. Cash position is also fine. Many new projects are in the pipeline. At the same time, the valuation is also seen staring.

PNC Infratech

Target: Rs 173
Current Price: Rs 155
Return Estimate: 12%

The company has DPR approved and in the Strong pipeline of the Land Ready Road project. The order book of the company looks strong. The company’s business is better and performance is also as expected. The valuation of the share is reasonable. In the coming days it may show good growth.

Kalpataru Power

Target: Rs 303
Current Price: Rs 250
Return Estimate: 21.2 percent

Kalpataru Power is in a better position in its region. The balance sheet is also consistent. The company has good value orders for Railways and T&D. The stock can grow more than 20 percent from the current price. Valuation is better.

Advice to sell these shares

Siemens

Rating: Sell
Current Price: Rs 1244
Target: Rs 889

FIG

Rating: Sell
Current Price: Rs 810
Target: Rs 766

GE T&D India

Rating: Sell
Current Price: Rs 108
Target: Rs 87

KEC International

Rating: Sell
Current Price: Rs 313
Target: Rs 271

Advice to hold these shares

BHEL

Rating: Hold
Current Price: Rs 37
Target: Rs 37

Cummins India

Rating: Hold
Current Price: Rs 450
Target: Rs 486

(Note: We have given information on the advice of the brokerage house here. Seeing the risk of the stock market, consult the experts before investing or saving shares.)

 

Source: www.financialexpress.com

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