HDFC Securities Assigns Buy, Add Call To These 2 Large Cap, Mid Cap Stocks

Leading brokerage firm HDFC Securities has assigned buy and add call to two mid cap and large cap stocks. These stocks are Multi Commodity Exchange of India Ltd and United Spirits Ltd. Multi Commodity Exchange of India Ltd has a market capitalisation of Rs 7,594.68 crore and United Spirits has a market capitalisation of Rs 63,508.22 crore. Check key takeaways below:

1. Multi Commodity Exchange of India Ltd

HDFC Securities has assigned buy call to Multi Commodity Exchange with a target price of Rs 2070 apiece and a potential return of 38%. The current market price of the stock is Rs 1493 apiece with 52-week high at Rs 2021 and 52-week low at Rs 1142 apiece, respectively. The mid cap company operates in Financial Services Sector. The stock has given a return of 39% in last 5 years and 29% in last 3 years. In last 1 month only, the stock has given a return of 24%.

The Multi Commodity Exchange of India Limited (MCX), India's first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management. The Exchange, which started operations in November 2003, operates under the regulatory framework of Securities and Exchange Board of India (SEBI), according to its official website.

According to the brokerage, MCX options ADTV continues to rise (+60% QoQ) while futures ADTV declined -5.2% QoQ. The options ADTV stood at INR 314bn, which is up ~5.2x YoY. The futures volume decline was led by crude (-22% QoQ). The effective ADTV (futures+options) is up 44% YoY, reaching INR 366bn in Q2FY23. MCX revenue is expected to increase by 11.6% QoQ and the margin will expand to 48.4% (+310bps QoQ).

2. United Spirits Ltd

HDFC Securities has assigned "Add" call to United Spirits Ltd with a target price of Rs 875 apiece. The current market price of United Spirits is Rs 873 apiece with 52-week high at Rs 1019 apiece and 52-week low at Rs 712 apiece, respectively. The company has a market capitalisation of Rs 63,493.69 crore. The large cap company operates in Beverage-Alcoholic sector.

United Spirits Ltd is India's second largest spirits company in the world by volume and is a subsidiary of Diageo plc- a global leader in beverage alcohol with an outstanding portfolio of brands across spirits beer and wine categories. United Spirits is engaged in the business of manufacture, purchase, and sale of beverage alcohol (spirits and wines) including vie tie-up manufacturing units and strategic brand franchises.

According to HDFC Securities, recently concluded strategic sale of 32 popular brands with focus on premium portfolio reflects United Spirit's strategy of accelerated profitable growth. Healthy improvement in operating performance during FY16-FY22 period; and debt free balance sheet coupled with marked improvement in RoCE over last 7 years.

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 check with certified experts before taking any investment decision.