Buy 3 Stocks In January Including 1 PSU Stock Recommended By Ashika Research

Ashika Research has recently published its Monthly Insight - January report, where the brokerage has picked 3 quality stocks with a "buy" rating on the stocks with a positive outlook for decent gains. These stocks are KPIT Technologies, Bharat Electronics, and Zydus Lifesciences. Below are the key takeaways from the report along with the stock outlook:

KPIT Technologies Ltd. (KPIT Tech)

Ashika Research has assigned a "Buy" on the stock of KPIT Tech for a target price of Rs 800/share. It claims a potential upside of 15% from its current level i.e. current market price. The stock is currently trading at Rs 696.55/share on NSE.

The stock made its debut on the stock market on 22 April 2019. Since its listing, it has given multibagger returns of 570.03%. It gave 5.73% positive return in 1 year and 14.45% in 3 years, respectively. It has given 662.74% multibagger returns in 5 years.

According to the brokerage, KPIT stands to benefit from the recent acquisition of the four Technica Group Companies, as the acquisition will help KPIT create a unique onestop shop for the automotive industry in its transformation towards Software Defined Vehicles (SDVs).

About the Company

KPIT Technologies Ltd. (KPIT Tech) is a global partner to the automotive and Mobility ecosystem for making software defined vehicles a reality. KPIT Tech provide software solutions targeting the Automobile OEM's leapfrog their growth towards CASE theme (Connected, Autonomous, Shared & Electric). It is a leading independent software development and integration partner helping mobility leapfrog towards a clean, smart, and safe future.

 

Bharat Electronics Ltd. (BEL)

The brokerage suggests buy the stock of BEL with a target price of Rs 115/share. It sees a potential upside of up to 14% if you buy the stock at the current market price. The stock is currently trading at Rs 100.10/share, trading 0.15% down from its previous close.

The stock has given 42.01% positive returns in past 1 year. It has given a maximum 197.18% positive return in 3 years. It has given 65.75% positive returns in 5 years. However, in 1 month it gave 5.97% negative returns.

According to the brokerage, The share of domestic procurement in the total procurement has increased to 68% in FY22 from 54% in FY19. BEL is India's leading player with market share of more than 50%, helps meet country's defence electronics needs.

About the Company

Bharat Electronics Limited (BEL) is a Navratna PSU (under the Ministry of Defence, Government of India) established in the year 1954. The company has strong manufacturing (with nine manufacturing units) and R&D capabilities and robust cost-control measures. BEL is a principal supplier of electronics to all the three arms of defence i.e. Army, Air force and Navy.

Zydus Lifesciences Ltd.

The brokerage recommends "buy" the stock of Zydus Lifesciences for decent gains p to 15% with a target price of Rs 480/share. The stock is currently trading at Rs 423/share on NSE, 0.69% up from its previous close.

The stock has given maximum 62.69% positive returns in 3 years. However, in 1 year it gave 11.37% negative returns and in 5 years it gave 1.28% negative returns, respectively. In 1 month it gave 1.81% positive returns and in 3 years it gave 3.33% positive returns.

According to the brokerage, Zydus Lifesciences has a robust pipeline of 105 ANDAs pending approval. The management guided for ~30 ANDA filings and launches each year while maintaining R&D spends at around 7% of revenues in FY23.

Zydus Lifesciences long term plan in venturing into complex injectables and niche orphan drugs in the US would provide meaningful traction only from FY24.

About the Company

Zydus Lifesciences is a leading pharma company having presence in domestic branded formulations, US generics and also in process of repurposing itself into niche areas of specialty pharmaceuticals, biosimilars and vaccines. It is the fourth largest pharma company in India with 14 brands among top 300 pharma brands in India and 9 with Rs 100 crore + sales. US is the largest contributor to its revenue, accounting 39% of revenue, followed by India 32%, Wellness 13% and Europe and emerging markets accounting 10% of the topline

Disclaimer

The stocks have been picked from the brokerage report of Ashika Research. 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.