3 Stocks To Buy & Accumulate, High Return Estimated: Suggests Top Brokerage Firm

Stock To Buy: Godrej Consumer Products Ltd.

The current market price of Godrej Consumer Products Ltd. (GCPL) is Rs. 874/ share, and KR Choksey has estimated a target price for the stock at Rs. 1,056/share, and given a 'buy' rating, with a 20.09% potential return. Its market capitalization is Rs. 8,93,736 mn. For Q1FY23, GCPL reported consolidated revenue from operations of Rs. 31,250 Mn, which is a growth of 8.0% YoY and 7.2% QoQ. The growth was driven by price hikes, while underlying volumes declined by 5.0% YoY. The brokerage firm said, "The Africa business continues to see good topline growth. GCPL's focus on improving profitability in the Africa business will yield results in the medium term and aid overall profitability. Indonesia is seeing some green shoots and we expect to see some improvement in FY23. GCPL has maintained FY23 targets for double digit revenue growth and low to mid single digit volume growth. We expect overall Revenue/EBITDA/Adj. PAT to increase by 10.5%/15.0%/15.3% respectively over FY22-24E."

Stock To Accumulate: Minda Corporation Ltd.

The current market price of Minda Corporation Ltd. is Rs. 240/ share, and KR Choksey has estimated a target price for the stock at Rs. 264/share, and given an 'accumulate' rating, with a 9.90% potential return. Its market capitalization is Rs. 57,690 mn. In Q1FY23, overall revenue grew by 80.8% at Rs. 10,102Mn which is highest in the history backed by new business and a rise in the share of business from existing customers from the wiring harness and Mechatronics segments. Also, growth in PVs and 2Ws segment led to revenue growth in Die casting business along with exports. The brokerage firm mentioned, "We expect robust revenue growth of 29% over the next 2 years backed by overall expected positive industry outlook and robust growth in electric vehicles segment. Minda Corp is focusing on enhancing its legacy product segments with the premiumisation and product innovation across all business segments to drive the content per vehicle. On the back of overall industry growth, the stock has performed well with the overall returns of ~29% over the last six months."

Stock To Accumulate: Britannia

The current market price of Britannia Industries Ltd. is Rs. 3633/ share, and KR Choksey has estimated a target price for the stock at Rs. 4016/share, and given an 'accumulate' rating, with a 10.6% potential return. Its market capitalization is Rs. 8,75,087 mn. The company reported revenue of Rs. 37,010 Mn, which is a growth of 8.7% YoY and 4.2% QoQ. Volume decline YoY has been in small single digit in Q1FY23, while total price increase would be over 20.0%+ YoY. The brokerage firm stated, "We expect margin improvement going forward due to softening of commodity costs, cost rationalization programs undertaken by the company, and the growing share of high margin newly launched products. Growing share of e-commerce is also helping to improve the product mix."

Return comparison

Here, the potential returns have been mentioned, as expected by KR Choksey, with the stocks' current market prices and target prices.

Disclaimer

The above stocks were picked from the brokerage report of KR Choksey. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.