4 Stocks Where HDFC Securities Has A "Buy", "Add" Or "Reduce" Rating

HDFC securities has identified stocks of four companies that it feels investors should "buy", "add" or "reduce." The companies are KEC International, Tata Power, TVS Motors and Dabur India. Given below are the details.

Reduce shares of KEC International
HDFC Securities in its research report has suggested investors to reduce the number of KEC International Ltd shares held in the portfolio. "Given the debt-heavy balance sheet, elevated working capital, and weak profitability, we maintain Reduce with a target price of Rs 400/share (13x Mar25E EPS). Rerating depends on debt reduction and margin recovery."

The latest market price of KEC International stock is Rs 517. 35 per share, up by 0.66 per cent. Its 52-week high is at Rs 525.05 per share and the 52-week low is at Rs 34.15 per share.

Add Shares of Tata Power
The company's planned 4GW of the extended module and cell capacity is expected to be rolled out in September 2023 and December 2023 respectively. Its EPC order book remains strong at Rs 174bn (4GW) and is gaining traction. Renewable energy capacity increased to 6.6GW in Q4FY23 with an installed capacity of 3.9GW and 2.7GW under various stages of implementation. The company is operating 4 units out of 5 in Mundra for which Sec 11 is extended till June.

It reduced debt by nearly Rs 28 billion in Q4 and has planned Rs 120bn in capex for FY24, which will be funded through internal cash flows. We maintain Add rating with SoTP of Rs 243, factoring
in margin restoration in its EPC business, healthy demand in its distribution circles, lower AT&C losses across the Odisha circle, and growing renewable business.

The latest market price of Tata Power stock is Rs 200.10 per share, down by 1.79 per cent. Its 52-week high is at Rs 251.30 per share and the 52-week low is at Rs 182.45 per share.

Buy shares of TVS Motor Company Limited
TVS continued to outperform peers even in FY23. It gained a 100bps market share in motorcycles to touch a record-high level of 8.9 per cent, in scooters, it is the biggest gainer and its market share is up 220bps to 23.6 per cent, even in 2W electric vehicles, TVS has now emerged as the second-largest player and sold 97k units of iQube in FY23.We maintain BUY with a revised target price of Rs 1,342 per share, from earlier Rs 1275), as we roll forward to FY25 EPS (target multiple unchanged at 28x).

The latest market price of Tata Power stock is Rs 1214.75 per share, up by 3.84 per cent on intraday basis. Its 52-week high is at Rs 1253.30 per share and the 52-week low is at Rs 589.10 per share.

Add Shares of Dabur India Ltd
As per the HDFC report, Dabur delivered consolidated revenue and domestic volume growth of 6 and 1 per cent YoY vs. the expectation of 7 and 1 per cent. The domestic business grew by 4.7 per cent while the international business posted a 1 per cent growth (10 per cent cc growth).

The rural market continues to witness downtrading and is still in the recovery phase, although early signs of green shoots are visible. We cut our FY24 EPS by 2 per cent to reflect higher marketing spending while keeping FY25 EPS unchanged. We value the stock at 42x P/E on Mar-25EPS to derive a target price of Rs 560. Maintain ADD.

The latest market price of Tata Power stock is Rs 200.10 per share, down by 4.77 per cent over the previous day's closing. Its 52-week high is at Rs 610.40 per share and the 52-week low is at Rs 482.20 per share.

Disclaimer
The stocks have been picked from the brokerage report of HDFC Securities. 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 consult with certified experts before making any investment decision.