3 Stocks To Hold: 3 Brokerages Maintain Hold Rating For Small, Large Cap Stocks

1. Cipla Ltd

The last trading price of the stock is Rs 1090 apiece with an intraday decline of 0.52%. The stock's 52-week high is Rs 1185 apiece and 52-week low is Rs 860 apiece, respectively. The company has a market capitalisation of Rs 88,027.50 crore.

The large cap stock has given 134% return in last 3-years, 82% in last 5-years, and 22% in last 1-year. Motilal Oswal has recommended investors to hold Cipla Ltd with a target price of Rs 1180 apiece.

According to Motilal Oswal, "After clocking almost steady earnings (INR15b) over FY18-20 and scaling it up to INR28b (on an adjusted basis) in FY22, we expect CIPLA to deliver 18% earnings CAGR over FY22-24 on the back of niche launches in the US and outperformance in the Branded Generics market. The increased contribution to profitability from US Generics is expected to keep the overall valuation multiple under check, given that the Generics business trades at a much lower multiple as compared to Branded Generics. The regulatory risk in US Generics remains high at the industry level, demanding a better risk-reward ratio. As the valuation provides limited upside from current levels, we maintain our Neutral rating on the stock."

2. Bosch Ltd

The last trading price of the stock is Rs 17,623 apiece with an intraday surge of 0.54%. The 52-week high of the stock is Rs 18,300 apiece and 52-week low is Rs 12,940 apiece, respectively.

The company has a market capitalisation of Rs 51,977 crore. The large cap stock has given 17% return in last 3-years and 12% in last 1-year. It has declined 11% in last 1-year. ICICI Securities has suggested investors to hold Bosch Ltd (BOS) with a target price of Rs 17542 apiece.

According to ICICI Securities, "Maintain HOLD on BOS keeping estimates unchanged with DCF-based target price of Rs17,542, implying 22x FY25E earnings."

Revenue growth in near term will follow industry trends with BOS retaining market/wallet share in key categories. For EVs, the company will announce new orders/projects only after starting to execute the same, and not in advance. Export revenue mix of 9% can at best rise to ~13-15% and not beyond, as BOS will focus on remaining an India-centric entity, said ICICI Securities.

3. Poonawalla Fincorp Ltd

The last trading price of the stock NBFC stock is Rs 289 apiece with 52-week high at Rs 343 apiece and 52-week low at Rs 182 apiece, respectively. The company has a market capitalisation of Rs 22,146 crore.

The stock has given 440% return in last 3-years, 81% return in last 5-years, and 54% return in last 1-year. The shares have fallen 10% in last 3-months. Emkay Global has assigned hold call for Poonawalla Fincorp with a target price of Rs 270 apiece.

According to Emkay Global, "Poonawalla Fincorp's existing consolidated portfolio is a dichotomy - of the old world legacy-acquired Magma Fincorp portfolio comprising of CV/CE/Agri/affordable housing loans that resides beside the digital-first-technology-led, mainly urban, consumer/SME loans that originated post the acquisition of Magma. As of Q2FY23, the PFL portfolio comprises of housing loans (incl. PHFL DSA acquired) at ~30%, unsecured PL/BL and loans to professionals at ~27%, pre-owned car loans at ~12%, legacy magma book at ~8%, other acquired loans at ~14%, with auto lease and LAP constituting the rest."

In our assessment, almost two-thirds of the portfolio would be unsecured loans, while the rest would be quasi secured, like LAP and pre-owed car loans.

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal, ICICI Securities, and Emkay Global. Greynium Information Technologies, the Author, and the respective Brokerage Houses 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.