2 Stocks To Buy For Long Term Investors According To Motilal Oswal

The stock markets have fallen a tad bit during the course of the week. Here are a few stocks that could be good buys according to broking firm Motilal Oswal.

Buy Piramal Enterprises stock, says Motilal Oswal

According to Motilal Oswal over the past two years, Piramal Enterprises has strengthened its Balance Sheet by running down its Wholesale loan book, reduced the top 10 exposures, brought equity capital into the company through multiple means, improved the texture of its borrowings by reducing CPs, and e) fortified itself against contingencies, with ECL provisions at 5.8% of assets under management.
"Product diversification within Retail would help the company deliver strong growth and lower concentration risk. We expect the Financial Services business to deliver 2.3% RoA/10% RoE over the medium term (post building in the DHFL acquisition). We have maintained our target multiple of 1.8 times for the Financial Services business. Using Sum of The Parts, we arrive at target price of Rs 3,150 per share (Jun'23E based). We maintain our Buy rating on the stock of Piramal Enterprises," the brokerage has said

Buy Jubilant Foodworks stock for a 20% upside

According to brokerage firm Motilal Oswal, the Jubilant FoodWorks stock has an upside potential of nearly 205 from the current levels. The company recently acquired 32.81% stake in DP Eurasia in Feb'21 via its wholly-owned subsidiary: Jubilant Foodworks Netherlands. It is the exclusive master franchisee of the
Domino's Pizza brand in Turkey, Russia, Azerbaijan, and Georgia.

According to Motilal Oswal as of March'21 Jubilant FoodWorks, has a robust Balance Sheet, with cash and cash equivalents of Rs 6.2 billion. While Jubilant FoodWorks subsidiary - JFN - has a short-term borrowing facility in place to fund the DP Eurasia acquisition, it would not be a stretch on Jubilant FoodWorks Balance Sheet. The increase in stake would give the company better control to steer the strategy of respective companies and replicate its success story from India.

Disclaimer:

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. The above article is for informational purposes only and investors should exercise some discretion, given that the Sensex is near the 60,000 points level.