1 Largecap & 1 Smallcap Stock To Add & Buy This Diwali For High Returns: HDFC Securities Suggest

The Indian stock markets closed flat today, Sensex closed at 59,307.15 points, and Nifty gained to 17,576.30.95 points. Here, 2 stocks have been discussed, as suggested by HDFC Securities to buy and add this Diwali.

L&T Technology Services - stock performances

The current market price of L&T Technology Services is Rs. 3,675/ share, and HDFC Securities has estimated a target price for the stock at Rs. 3,750/share, and given an add rating. The brokerage firm stated, "L&T Technology Services (LTTS) posted better-than-expected revenue and margin performance in Q2FY23, upped its FY23E revenue guidance (lower-band) and maintained a medium-term growth outlook. Revenue growth of 4.5% QoQ and 18.1% YoY CC was supported by strong growth in transportation vertical and plant engineering vertical. We have factored in USD revenue growth of +13.4/+14.8/14.6% and EBITM of 18.3/18.5/18.5% for FY23/24/25E respectively. LTTS is currently trading at 29x FY24E, with FY22-25E EPS CAGR at 19%."

PSP Projects

The current market price of PSP Projects is Rs. 571/ share, and HDFC Securities has estimated a target price for the stock at Rs. 675/share, and given a buy rating. According to HDFC Securities, "PSP Projects (PSP) reported weak revenue/EBITDA/APAT of Rs. 3.6/0.4/0.2bn, thereby missing our estimates at all levels. PSP continues to disappoint on the execution front as the extended monsoon in Q2FY23 led to weak execution and revenue booking. The current bid pipeline stands at Rs. 50bn, of which 52% orders are from Gujarat and 45% are private. FY23 revenue guidance stands at Rs. 20bn, with margin of 12-12.5% and an order inflow (OI) of Rs. 25bn. We maintain Buy on PSP with a reduced target price of Rs. 675/share (13x rolled over to Sep-24E EPS)."

Return comparison from stocks

In this table the Current Market Price (CMP) and the Target Price (TP) of the recommended stocks have been mentioned.

Company	CMP	Target Price
L&T Technology Services	Rs. 3,675	Rs. 3,750
PSP Projects	Rs. 571	Rs. 675

Disclaimer

The above stocks were picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the 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.