3-Stocks To Buy For Discerning Long Term Investors

The Sensex today hit a new record high of 53,000 points as buying continued unabated in stocks. It maybe time to get a little circumspect on the markets given the record highs in the markets. Here are 3 stocks that brokerages are recommending investors to buy and where they see a further potential for the stock to rise.

Dalmia Bharat

Motilal Oswal Retail Research has recommended buying the stock of Dalmia Bharat. The company is among the top five cement manufacturers in the country. The research firms sees a number of factors like sharp price hikes, capacity additions to boost financial performance.

"In the near term, supplies are expected to be impacted by logistic issues, which would support prices. We expect market share gains to continue, supported by 25% capacity expansion over the next year," the Motilal Oswal Retail Research has said.

According to the firm, the plan to double capacity provides long-term volume growth visibility. Interestingly, Dalmia Bharat is also paying back debt, which should reduce interest costs.

"The company has repaid its gross debt of Rs 22.2 billion in FY21 from operating cash flows, working capital release, and the dilution of the disputed mutual fund units - which were credited back to the company in the last quarter. Despite the ongoing expansion, the balance sheet remains well under control," the research firm has said.

"We remain positive on Dalmia Bharat and have given the price hike in eastern India and major expansions coming on board. Valuations are reasonable at 10.4x FY23E EV/EBITDA and EV/capacity of $112 per tonne. We reiterate Buy, with target price of Rs 1,905 per share (at 10 times FY23E EV/EBITDA)," Motilal Oswal Retail Research has said.

Shares of Dalmia Bharat were trading at Rs 1,831 on the BSE.

 

Maruti Suzuki

Emkay Global expects a strong recovery in passenger vehicle volumes due to easing of lockdowns, healthy order-book and improving macros and sees Maruti Suzuki among the key beneficiaries. The broking firm has set a target price of Rs 8,500 on the stock of Maruti Suzuki with a buy call.

"Maruti Suzuki customer base includes conservative customers who seek reliable products, better fuel efficiency, low maintenance costs, strong service/spares network and better resale values. To sustain share over medium term, Maruti Suzuki will also have to address the desirability factor. As the customers are upgrading to higher-priced vehicles (especially UVs), it is important for Maruti Suzuki to have successful launches in these categories. Media reports refer to upcoming products such as Jimny off-roader, mini SUV (larger Wagon R), small hatchback and jointly developed products with Toyota," the firm has said.

Shares of Maruti were last seen trading at Rs 7159 on the NSE.

 

NTPC

Motilal Oswal Institutional Equities has placed a buy call on the stock of NTPC with a price target of Rs 145 in its latest report. Power major, NTPC recently reported a very strong set of quarterly numbers for the period ending March 31, 2021.

"NTPC has taken steps to improve its renewables footprint. The 3GW of renewable capacities are under construction and expected to be commissioned over the next two years. Moreover, even as the company gradually scales up on its renewables journey, we expect continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21-23E. We have a Buy rating on NTPC, with a DCF-based target price of Rs 145 on the stock," the broking firm has said.

 

Disclaimer

The above stocks are based on the report of Motilal Oswal and Emkay Global. Investing in stocks are risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly. Please consult a professional advisor.