3 Stocks To Buy Next Week When Markets Fall

Markets are expected to fall next week, given mounting tensions on the Ukraine-Russia front. Rising bond yields in the US is also putting pressure on the Indian markets. Here are 4 stocks that investors could buy in case the markets do fall.

Buy Greenply Industries stock

Anand Rathi has recommended buying the shares of Greenply Industries. The company is one of the top plywood manufacturers in India for furniture & other applications along with blockboards, doors, decorative veneers.

"We like Greenply Industries for its leading position in plywood. We introduce FY24e and anticipate 23%/37% revenue/earnings CAGRs over FY21-FY24. With the increased capacity to go live in FY23/FY24 and the overall outlook encouraging, we upgrade the stock to a Buy with a higher target price of Rs 257, 20 times FY24e earnings (earlier Rs 227, 20 times FY23 (estimates earnings).

Buy the stock of Voltas

Brokerage firm, Anand Rathi is also bullish on the stock of Voltas. The company is is a 6-year old company with expertise in Air Conditioning & Cooling technology. The company also has a major projects business is classified into Domestic Projects Group (DPG) and International Operations Business Group. The company has a Mining & Construction Equipment Division and Textile Machinery Division as well.

According to Anand Rathi, Post-Q3 FY22, it has lowered its FY22e-FY24e revenue/EBITDA by an average 13%/3%.

"We now model 19%/40% CAGRs in revenue/net income over FY22-24, leading to the RoE expanding from 10% to 16%. We upgrade the stock to a Buy based on a sum-of-parts valuation of Rs 1,400" it has said.

Among the key risks that the brokerage sees is a slower pace of order inflows from government schemes pertaining to household water pipeline connections and rural electrification is the primary risk for the projects business.

AU Small Finance Bank

Broking firm Sharekhan is bullish on the stock of AU Small Finance Bank. According to the brokerage, at current market price, AU Small Finance Bank is available at 4.7 times and 3.9 times its FY2023E/FY2024E book value per share.

"Factors such as AU Small Finance Bank's long history and seasoned book are likely to support its asset quality and its superior return ratios and a long runway for growth are positives. With a strong provision coverage, helped by its strong underwriting track record, provides cushion on profitability. Further, the formation of SBUs and the appointment of H.R. Khan, ex-RBI Deputy Governor on the board, is likely to be positive and is expected to drive growth going ahead. With augmented capital, the bank can move ahead to become a full-scale universal retail-focused bank adding to its products and features. We maintain Buy on the stock with a revised price target of Rs. 1,425," Sharekhan has said.

Disclaimer

The stocks are picked from the brokerage reports of Anand Rathi and Sharekhan. 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. The author and has family do not own any stocks mentioned above.