ICICI Securities, a brokerage firm, has advised investors to buy NMDC and MInda Industries stocks for a one-year return. Sensex failed to hold its all-time high levels of 56,000 points in the previous trading session, pushed down by drag on metal, banking, and realty stocks, among others. Trading at the BSE and NSE will be closed today due to the Muharram celebration.
NMDC: Buy with a price target of Rs 210
ICICI Securities is bullish on India's largest merchant iron ore miner with an upside potential of 26%. NMDC is one of the lowest-cost iron ore producers in the world.
|Current Market Price||Rs 167|
|Target Price||Rs 210|
According to ICICI Securities, the new steel facility is expected to produce 2.7 MT of finished steel. The plant would exclusively produce flat products in terms of the product profile. NMDC forecasts the EBITDA margin to stabilize in the range of 42-50 percent, which would account for the impact of increasing premiums.
"NMDC's share price has given a return of ~76% over the last 12 months We maintain our BUY rating on the stock. Target Price and Valuation: We value NMDC at Rs 210, based on SoTP valuation," the brokerage has said.
Minda Industries: Buy with a price target of Rs 835
ICICI Securities is also bullish on the stock of Minda Industries and sees an upside of 19% in 1-year. The brokerage has set a price target of Rs 835 on the stock as against the current market price of Rs 700. MIL is India's largest manufacturer of vehicle switches, horns, seats, and PV alloy wheels, as well as the country's third-largest automotive lighting company.
|Current Market Price||Rs 700|
|Target Price||Rs 835|
According to the brokerage, the company is not a supplier to Ola Electric, but it is in talks with several major new-generation 2-W EV OEMs. On the seating side, it just received an order for an electric 2-W. While the topline result fell short of our expectations.
"MIL's share price has jumped >9x from ~Rs75 levels in August 2016, thereby vastly outperforming Nifty Auto index in that time. We retain BUY rating amid healthy growth prospects, intact kit value focus Target Price and Valuation: We value the company at a revised target price of Rs 835 i.e. 38x P/E on average FY23E, FY24E EPS", the brokerage has said.
The article is informational in nature, which is taken from the brokerage report of ICICI Securities. Please do consult a professional advisor before buying into any of these stocks. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in the article.