The recent bullish phase in the Indian stock market seems to be on a slope now. For the past few days, the market seems to be dominated by bears instead of bulls. So the shares continue to fall. Now investors are looking for such stocks, whose fundamentals are strong. The company is consistently earning profits and has good corporate governance. Let us know about two such stocks.
Nuvoco Vistas Corp
Rating – BUY
Target price Rs-645
Brokerage Company -ICICI Securities
Nuvoco Vistas Corporation ( NUVOCO) is the fifth largest cement company in the country. It is the third largest company in the eastern region. The company’s capacity is 23.8 million tonnes of cement production (annual). ICICI Securities believes that the company has been able to control costs after the acquisition of NU Vista (earlier Emami Cement).
The company’s products have become premium and scale has also benefited. Operating leverage may go up to 30 percent Nuvoco’s net debt may come down to Rs 46 billion by FY2024. At present it is Rs 57 billion. Along with this, Rs 36 billion can be spent on capex between the financial year 2022-24.
Siemens
Rating – BUY
Target Price – Rs 2660
Brokerage Firm – Edelweiss
There is consistency in the performance of Siemens. The projects that the company had secured for the fourth quarter are showing signs of their timely completion. The revenue of the company is as per expectation. But EBIDTA is not showing the expected growth as input costs have gone up and overhead expenses have also gone up. In the financial year 2020-2021, SIEM performed well on the revenue and EBIDTA front. This performance was equal to the better performance of 2019. However, this time the company’s orders are showing growth in single digit.
The OCF of SIEM is quite good and the net profit for this year is expected to grow by 125 per cent. Company management has a better outlook on private capex and infra. SIEM’s earnings growth is visible due to the increasing participation of private companies in the infrastructure sector and the new order outlook and can outperform its peer company ABB. The target price of this stock has been increased from Rs 2360 to Rs 2660.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. 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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