3 Reputed Stock Recommendations From Motilal Oswal That Can Potentially Give Upto 66% Returns

Motilal Oswal is recommending three stocks that potentially can generate high returns of upto 66% based on the estimates. These companies are Prestige Estates Projects, ONGC and NMDC. Check the details below.

Buy shares of Prestige Estates Projects, with a target price of Rs 675 per share

According to the brokerage report, the stock of Prestige Estates Projects Limited will rally upto 66%. The brokerage explains the reason for such estimates about the realty stock. "The management reiterated its FY23 sales guidance of over Rs 120 billion. With 73msf of upcoming residential project pipeline, we expect the run-rate to sustain over the next two-to-three years. The enhanced cash flows from residential segment will be largely sufficient to take care of business development spending and commercial capex requirement without much increase in net-debt (which is a key investor concern). Commercial portfolio once fully stabilized over the next five to six years will generate a rental income of Rs 32 billion, which is right now not fully implied into the current valuation. We reiterate our BUY rating on the stock with an unchanged target price of Rs 675 per share, implying an upside potential of 66%."

Currently the market price of the stock is trading at Rs 420.30 per share, which is up 3.45% on intraday basis. The 52-week high and low is at Rs 526.60 per share and Rs 375 per share respectively. In one year the stock price has declined by 5.24%, and in three years it plunged by 20.64%.

Buy shares of NMDC, with a target price of Rs 155 per share

Regarding the stock price of NMDC, Navratna company, the brokerage house believes that it will rise by upto 31%, as its valuations are attractive and have supportive fundamentals. The 3Q numbers of this Navratna, iron ore company were in line of the estimates, so the brokerage analyst has reduced FY24E. "4Q is a relatively stronger quarter with pickup in construction and infrastructure activities, which should lead to higher steel demand, and consequently, drive higher iron ore demand. We expect NMDC to continue its volume growth journey and clock a record of 50mt production by FY25E. In line with the 3Q financial performance, we have slightly reduced our FY24E revenue, EBITDA and APAT estimates by 4%, 6% and 6%, respectively. We reiterate our Buy rating on NMDC with a revised target price of Rs 155.

The latest trading price of stock NMDC is Rs 121.90 per share, it is up 3.09% over a day. In one year it has risen by 3.31% and in 3 years it has surged by 50.14%. The 52-week low is at Rs 81.27 per share and 52-week high is at Rs 143.13 per share.

Buy shares of ONGC, with a target price of Rs 200 per share

About the largest crude oil and gas company, ONGC, the brokerage suggests a strong guidance of a buy. "With the in-line 3Q performance, the standalone business does not warrant a change in our estimates for FY23/FY24/FY25. We increase our EBITDA/EPS estimates by 5%/13% for FY24 and by 7%/12% for FY25, due to investments ONGC has made in HPCL, MRPL and PLNG. With increased visibility of strong realizations and production growth, we reiterate our BUY rating on the stock. By valuing the standalone business at 6x Dec'24E EPS of Rs 28.5 and adding the value of investments of Rs 28, we arrive at a price target of Rs 200, implying 36% potential upside."

The stock price of ONCG is up by 5.66% to Rs 155.85 per share on intraday day basis. In three yeasr the stock price has rallied by upto 51.53% but over one year it was down by 7.51%. Its 52-week high and low is at Rs 194.60 per share and Rs 119.80 per share.

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies and 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.