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3 Stocks To Buy: Sharekhan Suggests 3 Large, Mid Cap FMCG Stocks For Attractive Returns
Sharekhan is upbeat on 3 large cap mid cap stocks for investors on Monday. These stocks are Tata Consumer Products Ltd, Zydus Wellness Ltd, and Marico Ltd. All these stocks operate in FMCG sector. If you buy these stocks at their current market price, you will receive attractive returns.
According to Sharekhan, "High consumer inflation continued to affect consumer demand in the domestic market (especially in rural India) in Q2FY2023. The industry witnessed high single-digit sales volume decline in the rural market, while volume decline in the urban market was in low single digit during the quarter."
1. Buy Marico Ltd
The current market price of the stock is Rs 487 apiece with an intraday gain of 0.22%. Sharekhan has given buy call to Marico with a target price of Rs 645 apiece. If you buy Marico at the current market price of Rs 487 apiece, you will get 32% return.
The current market price of Marico is Rs 487 apiece with 52-week high at Rs 554 apiece and 52-week low is Rs 455 apiece. The company has a market capitalisation of Rs 63,019 crore.
The large cap company operates in FMCG sector and came into existence in 1988. The stock has given a return of 56% in last 5-years, 34% in 3-years, and declined 10% in last 1-year.
According to Sharekhan, "We have broadly maintained our earnings estimates for FY2023 and FY2024, as results were largely in line with expectations."
Marico will continue to reap benefits of lower input prices and fast scale-up in some of the new ventures such as foods and digital brands, added Sharekhan.
2. Buy Zydus Wellness
The current market price of Zydus is Rs 1579 apiece with an intraday gain of 0.30%. Sharekhan remains bullish on the stock and has given buy call. If you buy Zydus Wellness Ltd at the current market price, you can get 25% return.
The mid-cap company was incorporated in 1994 and operates in FMCG sector. The stock has given return of 75% in last 5-years, 8% in last 3-years, and declined 22% in last 1-year.
According to Sharekhan, "We have lowered our estimates for FY2023 and FY2024 due to lower-than-earlier-expected margins because of higher inflation. Management expects the input cost inflation to soften, but prices are expected to remain high on a y-o-y basis."
3. Buy Tata Consumer Products
Sharekhan has assigned buy rating to the stock with a target price of Rs 925 apiece. If you buy Tata Consumer Products now at the current market price of Rs 798 apiece, you can fetch a return of 16%.
The current market price of Tata Consumer Products is Rs 798 apiece with an intraday gain of 1.18%. The stock's 52-week high is Rs 861 apiece and 52-week low is Rs 650 apiece, respectively. The company has a market capitalisation of Rs 74,181 crore.
The large cap company operates in FMCG sector and it was incorporated in 1962.
The stock has given multibagger returns to shareholders with 5-years return at 177%, 3-years return at 150%, and 1-year return at 4%.
According to Sharekhan, "We have reduced our earnings estimates for FY2023 and FY2024 to factor in weaker-than-expected performance in Q2FY2023 and lower-than-earlier OPM."
Consumer goods companies posted yet another muted quarter in Q2FY2023. Sales volume remained weak, affected by subdued demand in the rural market, which was impacted by higher consumer inflation, while the inventory of higher raw-material prices affected profitability, said Sharekhan.
Disclaimer
The stocks have been picked from the brokerage report of Sharekhan. Greynium Information Technologies, 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 check with certified experts before taking any investment decision.
