Analysts are seeing lesser and lesser value for stocks, as the markets continue hitting record peaks. In fact, it has no longer become a stock pickers market, with several stocks trading at 52-week highs. In the midst of this broking firms are suggesting a few stocks to buy. Here are 4 stock picks from leading brokerage houses.
Godrej Consumer is a leading personal-care company in India and has presence in India in countries across the globe. Recently, broking firm Motilal Oswal has placed a buy call on the stock of Godrej Consumer. The firm believes that the leadership offers scope for transformative change and also sees huge potential tailwinds in Soaps going ahead leading to growth in domestic market
"We think that the changes in top management along with: a) better capital allocation efforts in recent years, b) initial good results in GAUM (largely Africa) business in FY21, and c) potential tailwind in Soaps and Personal Wash products - are likely to unlock sustainable topline/earnings growth and revitalization RoCE over the next few years, leading to a sustained re-rating as well. We have seen transformative changes on all these fronts in the past with companies like Britannia, Nestle, Jubilant Foodworks and Hindustan Unilever. Therefore, maintain our positive outlook on the stock," the brokerage has said.
The shares of Godrej Consumer were changing hands at Rs 933.90.
JK Cement is India's top cement player, with significant presence in the white cement business as well.
Emkay Global has set a higher target price of Rs 3,000 on the stock of JK Cement. "We broadly maintain FY22 and FY23 estimates, factoring in 13% EBITDA CAGR. JK Cement's RoIC was reset to around 16% in FY21 vs. <10% till FY19, and we expect it to improve to 20% in the next 4-5 years and sustain at that level in the long term.
Our DCF-derived target price remains unchanged at Rs 3, 000 (Jun'22E), implying 12 times forward EV/EBITDA. Maintain Hold as the valuation re-rating is largely over and risk-reward appears balanced," Emkay Global has said.
Shares of JK Cement were last quoting at Rs 2,777.
ICICI Prudential Life Insurance
Brokerage firm, Motilal Oswal has suggested buying the stock of ICICI Prudential Life Insurance. The fund says that the improving mix towards high margin products, pension and Annuity offer a strong business opportunity.
"We expect trends to continue, further aided by a higher mix of Non-Linked Savings/Protection business, both of which have a higher persistency rate. Profitability can witness some pressure, led by elevated provisions towards rising COVID-19 death claims. We estimate ICICI Prudential Life to deliver 31% CAGR in new business APE and VNB growth at 29% CAGR over FY21-23E, led by stable margin and controlled operating expenditure. We maintain our Buy rating with a price target of Rs 675 per share (2.4 times FY23E enterprise value).
Shares of ICICI Prudential Life Insurance Company were trading at Rs 587 on the NSE.
Coal India is another stock Motilal Oswal has recommended to buy. The company's is the world's biggest coal miner.
"Coal India's adjusted EBITDA (excluding OBR) fell 16% YoY to INR79.7b but was 38% ahead of our estimate of INR57.8b. The beat comes on the back of: a) higher than expected revenue, and b) lower than expected costs. Revenue at Rs 267 billion was down just 3% YoY (5% ahead of our estimate). Realizations in both the FSA and e-auction segments were better than our expectations. Other operating income (transportation and evacuation related income) stood a healthy 11% YoY higher at Rs 22 billion," the firm has said.
The above mentioned stocks have been picked from brokerage reports. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only