2 Large Cap & Mid Cap Stocks From Consumer Durable Space To Buy For Robust Returns: Top Brokerage

Brokerage firms ICICI Securities and BOB Capital Markets are bullish on Havells India and Polycab India. The brokerages have assigned buy on the stocks with an attractive valuation for high returns. If you buy the stocks at their current market price, they could fetch returns up to 35%. Below are the key takeaways about the stocks:

1. Polycab India Ltd.

BoB Capital Markets has a buy-on stock of Polycab with a target price of Rs 3,300 per share. It claims a potential return of up to 20% from its current level if it is purchased at the current market price.

The current market price of the stock on NSE is Rs 2,761.20 per share. Its recorded 52-week low as on 20 June 2022 is Rs 2,043.85 per share and its 52-week high as on 15 December 2022 is Rs 3,025 per share, respectively.

The stock surged 3.66% in the past 1 week. It gave 2.9% in the last 1 year and 144.54% the highest return in the last 3 years, respectively. It is a midcap company that operates in Consumer Durable sector. It has a market capitalisation of Rs 41,309.24 crore.

According to the brokerage, "Polycab's Q3FY23 results beat our estimates on all fronts led by an upbeat performance in the wires and cables (W&C) division. The company's topline grew 10% YoY to Rs 37.2bn (Rs 36bn est.), clocking a 3Y CAGR of 14.1%, amidst recent commodity deflation and a higher base. EBITDA margin improved to 13.6% (+280bps YoY) on stronger operating leverage, and adj. PAT rose 46% YoY to Rs 3.6bn (Rs 2.9bn est.) on a lower base and buoyant sales."

 

2. Havells India Ltd.

Leading brokerage firm ICICI Securities has placed a buy on the stock of Havells India with Rs 1,550 target price. According to the given target price, if you buy the stock at the current market price, it would give returns of up to 35%.

The stock's last traded price on NSE is Rs 1,153.60 per share after falling 4.30%. Its recorded52 wee low as on 23 December 2022 is Rs 1,024.50 per share and its 52-week high as on 2 September 2022 is Rs 1,405.55 per share.

It has given 11.96% negative returns in the last 1 year. In the last 3 years, it gave 84.49% positive return and in the last 5 years, it gave 110.66% positive return, respectively. With Rs 72,274.16 crore market capitalisation, it is a large-cap consumer durable company.

According to the brokerage, "Havells reported revenue growth of 12.6% YoY in Q3FY23. However, EBITDA and adj. PAT were down 3.8% and 7.3% YoY, respectively. While gross margin improved 75bps YoY, higher staff cost and other expenses as percentage of sales pulled the EBITDA margin down by 175bps YoY. PAT margin also contracted to 6.9% during Q3FY23."

 

Disclaimer

The stocks have been picked from the brokerage reports. 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 consult with certified experts before making any investment decision.