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Buy These 2 Stocks For Upto 18.3% Returns In 1 Year

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Brokerage firm Emkay Global has recommended these 2 following companies' stocks for up to 18.3% returns in the upcoming 1 year.

 

Britannia Industries

Britannia Industries

Britannia Industries has been picked by Emkay Global, and the brokerage firm has recommended investors to buy this stock for getting 11.8% returns in 1 year. In a recent report, the firm has mentioned that the target price for the stock should be Rs. 4,050, as the Current Market Price is ~ Rs. 3,622, the stock is expected to give good returns.

Stock expectations
Current Market PriceRs. 3,622
Target PriceRs. 4,050
1 Year return11.80%

Britannia reports in-line sales growth of 6% (2-year CAGR of 9%), with volumes growing by ~2%, and their market share gains were stronger than FY21. However, their EBITDA declined 17% to Rs. 5.6bn, and PAT dropped 23% on high comparables.

Emkay Global's take on Britannia's stock
 

Emkay Global's take on Britannia's stock

According to Emkay Global, "Britannia Industries Refer to important disclosures at the end of this report Steady growth trends; margins to recover sequentially. The growth outlook seems to be improving, with margins likely to recover QoQ. Increased aggression in non-biscuit portfolio amid the pick-up in on-the-go consumption."

The firms added, we "Retain 'Buy' but reduce Target Price (Dec'22) to Rs. 4,050 from Rs. 4,300 (45x Dec'23E EPS). We believe that PLI benefits could add more upsides."

Mahindra & Mahindra's stock has been picked by brokerage firm Emkay Global to 'buy', anticipating an 18.3% return in the upcoming 1 year. In the latest report, the firm has mentioned that the target price for the stock should be Rs. 1,055, as the Current Market Price is ~ Rs. 892, the stock is expected to give good returns.

Stock expectations
Current Market PriceRs. 892
Target PriceRs. 1,055
1 Year return18.30%

In the Q2FY22 Mahindra & Mahindra reports that their EBITDA declined 19% YoY to Rs. 16.6bn, which was marginally above Emkay's estimates. The company's revenue increased 15% to Rs. 133.1bn, above the firm's estimate of Rs. 124.6bn, mainly aided by better realizations in the Auto segment. Mahindra & Mahindra's adjusted earnings increased 29% to Rs. 16.9bn, 13% above the firm's estimates, owing to higher other income. Their PV order book is strong at 160,000+ units, led by robust demand for XUV700 and Thar models.

According to Emkay Global, "Refer to important disclosures at the end of this report Earnings above estimates; Auto segment to drive growth ahead. We expect revenue/earnings CAGRs of 12%/14% over FY22-24E. Auto revenue should

see a strong 18% CAGR, while Farm equipment revenues are likely to witness a subdued 2% CAGR."

The firm added, we "Recommend Buy with a Target Price of Rs. 1,055 (Rs. 920 earlier), based on 14x core P/E on Dec'23E (Sep'23E earlier) and the value of investments at Rs. 537/share (Rs. 435 earlier)."

Disclaimer

Disclaimer

The above stocks have been picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

(Also read: Buy These 2 Stocks For Upto 38% Returns: Emkay Global Recommends)

Read more about: shares to buy stocks to buy
Story first published: Wednesday, November 10, 2021, 15:26 [IST]
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