3 Largecap & Midcap Stocks To Buy & Hold This Month After Quarterly Reports: Emkay Global

With a flat market trend, investors are being cautious about the stocks to by and hold. Here 3 stocks have been suggested by Emkay Global to buy and hold this month. Check details here.

CESC

CESC is being traded at around Rs. 76/share, and Emkay Global has suggested to buy this stock with Rs. 101 target price, for 32.60% potential return. CESC reported standalone PAT of Rs. 2.43bn for the quarter, up 3.4% YoY. According to the brokerage firm, "We have cut our FY23E/FY24E EPS by 6-7%, to factor-in the slower improvement in performance of distribution franchisees. In Rajasthan, while sales have seen a good increase, loss levels have not yet narrowed down. Further, due to high textile exposure, Malegaon losses have further increased for 1H. We maintain buy, with September 2023 target price of Rs. 101. Key triggers include standalone tariff increase and performance of DFs. Risks include tepid demand in distribution circles."

JK Cement

CESC is being traded at around Rs. 2940/share, and Emkay Global has suggested to hold this stock with Rs. 2725 target price. The Board of the company has approved cement-capacity expansion of 5.5mt and clinker capacity-addition of 0.66mt at a capex of Rs. 11.6bn over the next 2 years. But its Q2FY23 standalone EBITDA declined 16% YoY. The brokerage firm said, "The company has revised upward its capex guidance to Rs. 19bn/Rs. 14bn and Rs. 11bn for FY23 and FY24, respectively. Net debt increased by Rs. 8bn in H1FY23, to Rs. 29bn as of Sep-22, and Management expects peak net debt of ~Rs. 35bn by Jun-23. Factoring-in the Q2 beat and higher volume growth with the capacity addition announcement, we increase our EBITDA estimates for FY24-25 by ~5%."

Bharat Forge

Bharat Forge is being traded at around Rs. 859/share, and Emkay Global has suggested to hold this stock with Rs. 820 target price. Bharat Forge's Q2FY23 revenue grew by 16% YoY (3-yr CAGR at 14%) to Rs. 18.6bn. Additionally, the company approved an interim dividend of Rs. 1.50 per equity share at the rate of 75%, and November 25 has been fixed as the Record Date. "Going forward, a muted outlook is expected by Paccar (OEM), Volvo (OEM), and Americas Commercial Transportation for North America Class 8 trucks for CY23/CY24 and Europe heavy trucks for CY23. Considering subdued global CV outlook and limited upside potential, we retain HOLD with a December 2023 target price of Rs. 820, based on 24x P/E for standalone and 13x P/E for subsidiaries."

Disclaimer

The above stocks were picked from the brokerage reports by Emkay Global. 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.