3 Pvt, PSU Stocks To Buy: Motilal Oswal Sees 3 Stocks Soaring, Assigns Buy Call

Leading brokerage firm Motilal Oswal has assigned buy call to three stocks namely AU Small Finance Bank, NMDC, and Motherson Sumi Wiring India Ltd. NMDC Ltd is a large cap Navratna company and mid cap company Motherson Sumi operates in auto ancillaries sector. Check details below:

1. Buy Motherson Sumi Wiring India: The analyst has recommended buy call to Motherson Sumi Wiring with target price of Rs 70 apiece. If you buy Motherson Sumi Wiring shares now at current market price of Rs 59.60 apiece, you can fetch likely return of 17.45%.

The stock's 52-week high price is Rs 71.15 apiece and 52-week low price is Rs 45.24 apiece, respectively. Its market capitalisation of Rs 26,349.80 crore. In last 3-months, Motherson Sumi Wiring shares jumped 7% and gained 19% in last 6-months. The mid cap stock operates in auto ancillaries sector.

According to Motilal Oswal, "We believe it deserves rich valuations driven by a) its strong competitive positioning, b) top decile capital efficiencies, and c) it being a beneficiary of EVs and other mega trends. The stock trades at 39.7x/31.6x FY24E/25E EPS. We reiterate our BUY rating on the stock with a TP of INR70 (~35x Sep'25E EPS)."

2. Buy NMDC: Motilal Oswal has assigned buy call to the large cap navratna PSU stock, NMDC Ltd with target price of Rs 135 per share. If you buy NMDC share at current market price of Rs 119.45 apiece, you can get potential return of 13.45%. The PSU stock's 52-week high price is Rs 131.85 apiece and 52-week low price is Rs 93.60 apiece, respectively. It has a market capitalisation of Rs 35,006.09 crore.

NMDC shares gained 14% in last 3-months, gained 19% in last 1-year, fell 6% in last 2-years, and soared 55% in last 3-years.
According to the brokerage firm, "The volume outlook remains robust and NMDC is on track to deliver 50mt of volumes in FY25. Considering the improved outlook on pricing and margins, we have slightly increased our revenue/EBITDA estimates by 3%/3% for FY24 and by 3%/4% for FY25. NMDC trades at FY25E EV/EBITDA of 4.1x and FY25E P/B of 1.2x. We maintain our BUY rating on NMDC with a revised TP of INR135."

3. Buy AU Small Finance Bank: Motilal Oswal has suggested investors to buy AU Small Finance Bank shares with target price of Rs 825 apiece. Current market price of AU Small Finance Bank share is Rs 737.55 apiece with intraday fall of 1.05% on BSE. If you buy AU Small Finance Bank shares at current market price, you can get likely upside of 12%. Its 52-week high price is Rs 794.95 apiece and 52-week low price is Rs 548.15 per share. It has a market capitalisation of Rs 49,252.65 crore. AU Small buy NMDC share at current market price of Rs 119.45 apiece, you can get potential return of 13.45%. The PSU stock's 52-week high price is Rs 131.85 apiece and 52-week low price is Rs 93.60 apiece, respectively. It has a market capitalisation of Rs 35,006.09 crore.

NMDC shares gained 14% in last 3-months, gained 19% in last 1-year, fell 6% in last 2-years, and soared 55% in last 3-years.
According to the brokerage firm, "The volume outlook remains robust and NMDC is on track to deliver 50mt of volumes in FY25. Considering the improved outlook on pricing and margins, we have slightly increased our revenue/EBITDA estimates by 3%/3% for FY24 and by 3%/4% for FY25. NMDC trades at FY25E EV/EBITDA of 4.1x and FY25E P/B of 1.2x. We maintain our BUY rating on NMDC with a revised TP of INR135."

3. Buy AU Small Finance Bank: Motilal Oswal has suggested investors to buy AU Small Finance Bank shares with target price of Rs 825 apiece. Current market price of AU Small Finance Bank share is Rs 737.55 apiece with intraday fall of 1.05% on BSE. If you buy AU Small Finance Bank shares at current market price, you can get likely upside of 12%. Its 52-week high price is Rs 794.95 apiece and 52-week low price is Rs 548.15 per share. It has a market capitalisation of Rs 49,252.65 crore. AU Small Finance Bank shares gained 23% in last 6-months, soared 12% YTD, and offered return of 100% in last 3-years.

According to the analyst, "AUBANK's stock has corrected ~12% in the past few months and is now trading at 3.2x FY25E BV vs. 3-year/5-year average valuations of 3.8x/4.0x P/BV. We thus upgrade our rating to BUY with a TP of INR825 (based on unchanged 3.7x, FY25E BV)."

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.