3 Stocks To Buy Which Can Give Good Returns After The Market Plunge

Markets have begun the week on a dismal note with the Nifty down another 2%, following worries over a Russian invasion of Ukraine. Here are a list of 5 stocks that you can buy taken from brokerage reports, which have the potential to give good returns to investors.

MRF: Buy says Anand Rathi

Bokerage firm, Anand Rathi has a buy on the stock of MRF with a price target of Rs 84,434. "Our channel checks indicate that the company raised prices 15% for all product categories except in two-wheelers, where prices were hiked ~10% between Oct'21 and Feb'22. Dealers are asking for more products and demand is strong. We believe there is still some under-recovery which we expect would be recouped in subsequent quarters, aiding margin expansion. Hence, we expect 13% margins in FY23 and 14% in FY24. We expect a 15% revenue CAGR over FY21-24, and 13% in earnings, leading to an EPS of Rs4,222. We maintain our Buy rating at a revised target price of Rs 84,434 (20x FY24e)," the brokerage has said.

Insecticides India: Buy the stock, says Sharekhan

Sharekhan has maintained a buy on the stock of Insecticides India with a revised price target of Rs 855.

"We expect the company to benefit from rampup of new products post capacity expansion, higher exports revenue, and potential rise in share of branded products (Maharatna Brands). Thus, we expect strong revenue, EBITDA, and PAT CAGR of 13%/25%/28% over FY2021-FY2024E along with decent RoE of 17-18%. Hence, we maintain our Buy rating on IIL with a revised price target of Rs 855. At the current market price, the stock is trading at an attractive valuation of 8x its FY2023E EPS and 6.2x its FY2024E EPS," the brokerage has said.

Carborundum Universal: Buy the stock says Sharekhan

Sharekhan has set a price target of Rs 1039 on Carborundum Universal. "The company growth momentum is expected to sustain, given demand across segments such as abrasives and electro-minerals along with a strong product line-up for overseas operations. Carborundum Universal stands to benefit from multiple factors such as a broad-based recovery in industrial capex, China +1 strategy, strong government initiatives to support domestic manufacturing and healthy demand prospects for regular and specialty products. The stock currently trades at a P/E of 30x on FY2024E earnings, which we believe leaves further room for an upside, considering its strong earnings growth outlook and a robust balance sheet. Hence, we retain Buy on Carborundum Universal with an unchanged price target of Rs 1,039," the brokerage firm has said.

Markets to remain volatile

While we have recommended the above three stocks, we wish to warn readers that markets are expected to remain increasingly volatile. Rising bond yields in the US and threats of Russian invasion of Ukraine will keep markets on the edge.

Disclaimer

The above stocks are based on the report of Sharekhan and Anand Rathi. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks.