4 Stocks To Buy As Recommended By Top Broking Houses In The Country

Markets are once again on the ascendancy, with investors now looking to find value in good quality stocks. Several stocks have been re-rated following their quarterly numbers. Here are a list of 4 stocks, that brokerages have a buy on post quarterly numbers.

UPL

Following the quarterly results, Prabhudas Lilladher has maintained a buy call on the stock of UPL with a price target of Rs 1020. The stock of UPL is currently trading at Rs 738.80.

UPL reported 2QFY23 revenue/EBITDA/PAT of Rs125.0bn/Rs27.6bn/Rs8.5bn (+18%/+35%/+27% YoY) and were better than our (+3%/+24%/+14%) and Cons. Estimates (+4%/+17%/-7%).

According to Prabhudas Lilladher, the gross margins improved by 320bps YoY to 53.6% primarily led by price hikes taken in the recent past to mitigate the raw materials cost. While, lower employee and higher opex cost down 30bps and up 80bps YoY has resulted into EBITDA margins expansion of270 bps YoY to 22.1% (Our/Cons. Est of18.4%/19.7%). The firm believes that the stock can be bought for a target price of Rs 1020.

Puravankara

For the stock of Puravankara, brokerage firm Sharekhan sees an upside of 21 to 23% from current levels and has a buy call. 

"Puravankara continues to report strong sales booking and collections while revenue recognition is expected to pick-up in H2FY2023. It is well-poised to benefit from an uptick in the realty market with a strong launch pipeline, deleveraged balance sheet, huge paid-up land bank and credible management bandwidth. Continued consolidation in the realty market with large developers expected to achieve significant scale, is expected to benefit Puravankara, especially in the southwestern regions. We have introduced our FY2025E earnings in this note. The stock is currently trading at just 0.4x P/B its FY2024E which is much below larger peers while it has set itself for high surplus cash generation going ahead. Hence, we retain a positive view of the stock and expect a 26-28% upside," the brokerage has said.

Mahindra Lifespace Developers

According to Sharekhan, the stock of Mahindra Lifespace Developers has corrected by 25% over less than the trailing two months owing to continued operating losses reporting over trailing four quarters and nil business development activities getting closed post April 2022.

"We expect revenue recognition to catch up going ahead while the addition of new projects takes place in H2FY2023. The pre-sales are expected to see significant growth in FY2023 led by a strong launch pipeline in H2FY2023 and high growth achieved in H1FY2023. The Development of Enterprise and Service Hubs (DESH) bill is expected to provide further traction to its IC&IC business. We introduce our FY2025E earnings in this note. We retain a Buy on the stock with a revised price target of Rs. 600 lowering our NAV premium to factor in the delay in business development activities and revenue recognition," the brokerage has said.

Marico Industries

For Marico, Prabhudas Lilladher, has a hold call with a price target of Rs 523. "The company continues to take advantage of favourable RM basket by investing aggressively in ad spends which has results in strong marketshare gains across 90%+ of the portfolio. International business continues to report double-digit constant currency growth for the seventh consecutive quarter. Domestic volumes at 3% grew ahead of the industry which reported fourth quarter of declines was helped by price corrections in key packs. We will revisit our numbers post earnings call. We have a HOLD rating on the stock with a target price of Rs523," the brokerage has said. The stock currently trades at 45.0x/38.9x FY24/FY25 EPS.

Disclaimer

The stocks have been picked from different brokerage reports. 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.