5 Stocks To Buy For Long Term & New Investors For Good Gains

Manapurram Finance

Prabhudas Lilladher has recommended buying the stock of Manapurram Finance with a price target of Rs 125 on the stock.

"Going forward, Co. expects yields to not fall below 20-21% and can expand assets under management without reducing yields or introducing teaser rates. From highs of 23% gold loan yield, 20-21% can be the new normal. We maintain AUM CAGR of 15% for FY22-24 and GNPA forecasts of 2.8%/2.4% over FY23/24. Worst seems to be over in terms of pricing pressure in the gold loan business, but Asirvad microfinance business continues to lag in AUM growth and asset quality. Reiterate 'BUY' rating as valuation is attractive at 0.8x FY24 P/ABV with price target maintained at Rs126, valuing the consolidated book at 1.1x PABV Sep'24E," the brokerage has said.

Buy Reliance Industries for a price target of Rs 3125

Prabhudas Lilladher hosted a telecom expert to better understand India's evolving telecom landscape, post completion of 5G auctions. Key highlights of the call were Industry tariff hike of Rs60/mon (18-25%) likely before year end, to make up for high spectrum capex by CY24 end Jio can expect revenues of Rs2 30bn from connectivity and IOT, then take a significant share in enterprise business (industry size likely to increase 3x to Rs750bn by FY25E ) capex is likely at Rs200bn, including spectrum payment of Rs78bn p.a company will likely go for pan India 5G launch vis-à-vis more gradual roll-out for peers, thereby attracting premium customers. Jio's growth prospects look promising led by subscriber addition post churn and regular tariff hikes. "We leave Jio estimates unchanged and will review them post 5G launch. We reiterate 'BUY' at target price of Rs 3165 on the stock of Reliance Industries. The stock is our preferred pick given dominant position across business verticals," the brokerage has said.

Triveni Turbine

Sharekhan has suggested to buy the stock of Triveni Turbine for long-term investors.

Order booking during the quarter was the highest ever at Rs. 358 crore (up 31% y-o-y). Given order book of Rs. 1,070 crore and large enquiry pipeline, the company aims 35% revenue growth for the next couple of years.

The company's entry into new segments, such as API turbines and turbines of more than

Buy Max Financial Services for a price target of Rs 1020, says Sharekhan

According to Sharekhan, Max Financial Services business has evolved over the years with improving VNB margins, private market share at 9.9% and a diversified product portfolio. It is an attractive player with strong capabilities and business mix in the insurance space. Axis Bank continues to be the Max Financial Services strongest distribution partner, with 67% contribution to APE and, hence, is a crucial partner.

"Moreover, Max Financial Services has been on-boarding newer bancassurance partners and new-age digital players, which would not only help diversify the mix but also provide higher sales capacity for it. Hence, we believe business tailwinds may result in providing a positive trigger for improving metrics going forward. Max Financial Services generates healthy RoEV (of 13.5% in Q1FY23) and has sufficient capital (solvency ratio of 196%) and hence it is likely to benefit from the improving outlook for the insurance sector going ahead. We maintain our Buy rating on the stock with a revised price target of Rs. 1,020," the brokerage has said.

Britannia Industries

Prabhudas Lilladher has a hold rating on the stock of Britannia Industries. "We cut our FY23/24 EPS estimates by 1.2%/0.4% and assign HOLD rating (Under Review earlier) post a sharp 22% return from the lows. While 1Q volumes were a tad disappointing, input cost inflation holds key to
profitability in the near to medium term.