Indices in trade today (June 16, 2021) are down with Nifty falling below 15,800 levels and Bank Nifty and broader markets underperforming their headline peers. Now as record highs have been scaled on the index only yesterday with Nifty topping levels of 15901.6, there is cautious mood among investors who are also awaiting the crucial US Federal Reserve policy outcome.
Nonetheless, if you are a long term investor into equity markets, here are a few brokerage recommended buy calls for long term:
1. Jindal Steel and Power (JSPL)- TP- Rs. 550
New-Delhi based JSPL is a leading steel and energy company of the Jindal Group. The company's dominance is in the area of steel, mining, power and infrastructure.
Angel Broking has given a ‘Buy' call on the scrip of JSPL with a target price of Rs. 550, implying nearly 34% upside considering the LTP of Rs. 409.05 per share on the NSE. The buy price recommended for the scrip is Rs. 420.4.
The recommendation has been made on the following premise:
1. Strong global demand for steel resulting in re-rating for the sector
2. Company has posted a very good set of numbers for Q4FY21. Net profit at the company jumped a whopping 977.19% YoY to Rs. 1968 crore. EPS at the company increased to Rs. 19.3 for the March ended quarter of FY21 as against Rs. 3.98 in the March quarter of FY 20.
3. Deleveraging of the balance sheet is positive for the company
4. Stock is available at a reasonable valuation despite the rally.
2. Quess Corp: TP-Rs. 1060
Incorporated in the year 2007, Quess Corp is a top integrated business solutions provider in the country. Bengaluru headquartered firm offers a gamut of technology-backed staffing as well as managed outsourcing services across areas including, sales & marketing, customer care, after sales service, back office operations, manufacturing operations, facilities and security management, HR & F&A operations, IT & mobility services, etc.
Angel Broking has recommended the scrip as a ‘Buy' at a price of Rs. 838.90 for an upside target of Rs. 1060.
Long term recommendation on the scrip of Quess Corp is given in view of the following:
1. Quess Corp is one of the leading human resource entity in the country with huge client base
2. Strong results posted for the Q4FY21 quarter.
3. Increase in demand for staffing solutions because of the pandemic.
4. Stock available at a discount in comparison to ‘Teamlease' despite similar return ratios.
3. Suprajit Engineering: TP- Rs. 360
The auto ancillary firm is the third leading light duty Control cable manufacturer in the world and the largest Automotive Halogen Bulb manufacturer in India.
Angel Broking has recommended to ‘Buy' the scrip of Suprajit Engineering for long term for a target price of Rs. 360, i.e. an upside of 14% given the last traded price of Rs. 314.95 per share on the NSE. The broking firm has recommended a buy price of Rs. 286.5
Observations made by the brokerage in respect of
Suprajit Engineering are as follows:
1. The company is the largest supplier of automotive cables to the domestic OEMs
2. The company has outperformed the auto industry in India in the last few years.
3. The company boast a strong balance sheet (net cash position) by turning profitable over the years.
4. Also, there is a belief that SEL is the prime beneficiary of ramp-up in production by OEMs across the globe.
The above mentioned stocks have been picked from brokerage reports. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only