3 Stock Ideas Of Sept 2022 As Suggested By Sharekhan

Sharekhan has come-up with its Value Guide report for Sept. According to it, Nifty trades at premium to long-term averages. Here are 3 stock ideas the brokerage firm has recommended in recent reports in the month of Sept, 2022 and has highlighted in the Value Guide report.

Eicher Motors

The brokerage has set a price target of Rs 4100 on the stock of Eicher Motors. "We initiate coverage on Eicher Motors Limited (EML) with a Buy rating and a 12-month price target of Rs. 4,100 by valuing the business at 28x its rolling-forward September 2024E EPS," the brokerage has said.

"Promising launch of Hunter 350, focus on core brands through refreshed launches, better customisation, robust export opportunities and expected recovery in premiumisation trend in two-wheeler industry would widen the company's addressable market and boost performance going forward," it has stated.

Restaurant Brands Asia

The brokerage has set a price target of Rs 175 on the stock. "We initiate coverage on Restaurant Brands Asia (RBA) Ltd (formerly known as Burger King India) with a Buy rating and a price target of Rs. 175. RBA an emerging QSR play with strong store expansion plans and a well-accepted portfolio is trading at an attractive valuation of 27.1x/14.1x its FY2023E/24E EV/EBITDA," the brokerage has said.

Restaurant Brands Asia: Strong store expansion

According to Sharekhan, long-term franchisee agreement with ‘Burger King' (expiring in Dec 2039), strong store expansion plans (700 stores by FY2026) and a differentiated menu with a focus on value and premiumisation provides it an edge over peers to scale up faster in the coming years

Hindustan Aeronautics

Another stock that finds a mention in the Value Guide report is Hindustan Aeronautics. "We initiate viewpoint coverage on Hindustan Aeronautics Limited (HAL) with a Positive view as we believe it's a good bet on India's defence reforms given its robust order book of Rs 84,800 crore and order pipeline of over Rs 1 lakh crore in the next 3-4 years," the Sharekhan report has said.

"HAL has strong government support, proven execution capabilities, an improving working capital cycle and healthy cash balance of ~Rs. 14,000 crore. It trades at ~17x FY24E EPS, lower than listed peers. We have a Positive view on the stock and expect an upside of 20-22%," the brokerage has said.

Timing the markets futile

According to Sharekhan, the earnings estimate for FY2023/24 have also seen downgrade of 2-3% post the Q1FY23 results. "Consequently, we suggest that investors stay invested but in the right quality of stocks. Trying to time the markets is a futile exercise and most investors waiting for a further correction have missed a rally of close to 3,000 points on the Nifty from lows seen in June 2022. So, it is good to be cautious but not fruitful to be fearful in the prevailing market conditions," the broking firm has said.