7 Stocks To Buy And Bet On In The Month Of November 2022

As we head into November the indices have reached the 60,000 levels all over again. At these levels one will have to look hard to find quality. We have compiled a list of stocks to buy in the month of November largely picked from the latest brokerage reports.

Here are the list of stocks to buy

Name of company	Brokerage firm	Current market price	Target price
Dabur India	Axis Direct	550.9	650
Aarti Drugs	Axis	466	545
Maruti Suzuki India	ICICI Direct	9493	11200
Dr Reddy's	ICICI Direct	4459	5215
Ramkrishna Forgings	ICICI Direct	223	280
ICICI Bank	KR Choksey	907	1115
ITC	KR Choksey	345	400

Buy ITC, with a price target of Rs 400

KR Choksey has said that it values ITC shares using the SOTP approach applying 12.6x EV/EBITDA (unchanged) on the FY24E EBITDA of Cigarette business; 21.0x EV/EBITDA (previously 18.9x) on the FY24E EBITDA of Hotels business; 8.6x EV/EBITDA (unchanged) on FY24E EBITDA of Agri business; 6.0x EV/EBITDA (unchanged) on FY24E EBITDA of Paper business and 8.8x EV/Revenue (previously 8.0x) on FY24E Revenue of FMCG business - we increase our target price to Rs 400 per share (previously Rs 369); an upside of 15.5% over the current market price. "Accordingly, we maintain our "BUY" rating on ITC Ltd shares," the brokerage has said.

Hold the V-Guard stock, says ICICI Direct

Apart from the buys mentioned above, ICICI Direct has a hold on the stock of V-guard. Revenue at the company saw a growth at 8.7% YoY to Rs 986.1 crore on a favourable base and strong growth in the consumer durable segment. On a three-year basis, revenue grew at 16.5% CAGR led by strong growth in the consumer durable segment.

Gross margin declined 210 bps YoY due to inventory losses in the wire segment. EBITDA margin declined 308 bps YoY to 7.4% due to lower gross margin and increased ad-spend.

Triggers for further upside on the stock

According to ICICI Direct the expansion in non-south regions (revenue contribution increased from 37% in FY18 to 41.7% in FY22) and government housing thrust (to build 1.3 crore new houses under PMAY) will be key growth driver for V-Guard.

Plan to increase in-house manufacturing from current 55% to 60%, which will help the company to improve profitability. "V-Guard's share price has given return of 19% in the past five years (from Rs 214 in October 2017 to Rs 253 levels in October 2022). We maintain a hold ratings on the stock," the brokerage has said.