Stock Tips: These two shares will make bumper earnings, experts will have a profit of 37% on the target price

Investors can earn bumper profits of up to 37 percent by investing in Havells India and TVS Motor.(Image- Pixabay)

Stock Tips: Domestic domestic benchmark indices Sensex and Nifty closed down from record highs on Tuesday and since then it is closing with a decline. After the strong results of the stocks, profit-booking has increased the pressure on the market. According to market experts, if we talk about individual stocks, then investors can earn bumper profits of up to 37 percent by investing in Havells India and TVS Motor.

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Havells India- (October 21 closing price on NSE – Rs 1288.50)

• In the second quarter of the current financial year, July-September 2021, the revenue of Havells India grew by 32 per cent year-on-year and 24 per cent on a quarterly basis to Rs 3,240 crore. This was higher than the estimate of Rs 2800 crore.
• The company’s revenue growth was supported by channel strategies like online, rural and modern trade.
• The company’s EBITDA in the September quarter grew by 6 per cent year-on-year and 25 per cent on a quarterly basis to Rs 440 crore, but the EBITDA margin declined by 13.7 per cent year-on-year due to increased raw material cost.
• The company’s net profit (Profit After Tax-PAT) in the September quarter declined 7 per cent year-on-year to Rs 300 crore. However, it was 28 percent more than its previous quarter April-June 2021.
• Analysts at Reliance Securities have cut Havells India’s EBITDA estimates for FY 2022-2024 due to lower margins and cost pressures.
• According to Reliance Securities, the company will get support for growth on the back of recovery in government and private expenditure. Though the brokerage firm has retained its buy rating on Havells India, keeping its target multiple for FY2024 unchanged due to rising costs, it has reduced its one-year target price to Rs 1631 from Rs 1766.

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TVS Motors- (October 21 closing price on NSE – Rs 583.25)

• TVS Motor’s EBITDA margin was in double digits for the first time in the second quarter of the current financial year.
• The company’s revenue grew 22 per cent year-on-year and 43 per cent quarterly to Rs 5620 crore in the second quarter. The company’s sales grew by 6 percent year-on-year and 39 percent on a quarterly basis.
• Its EBITDA margin rose by 0.6 per cent (Q.Q.) to 10 per cent in the September quarter due to lower employee spending, control over other expenses and cost-cutting efforts, compared to 8.3 per cent estimates by experts. .
• TVS’s net profit (PAT) in the September quarter stood at Rs 280 crore, 29 per cent higher than the estimate.
• The company’s growth was further supported by product mix, price hike, increase in exports and favorable exchange rate.
• According to experts at Reliance Securities, better new launches, product mix and increasing exports, besides favorable exchange rate will help the company to increase margins. In view of this, Reliance Securities has advised to buy it at a target price of Rs 801.
  (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.)