Stock markets are at historic peaks and as such, investment in shares is fraught with the risk of a severe downside. However, though today stocks are at historic highs, some can still be great picks. Here are a few stocks to buy today for long term investors keeping in mind fundamentals. Remember, it is always tricky to find the best bluechip shares to buy, but, some could still offer great value going ahead. We have picked some stocks from the recent report of brokerage firm Emkay Global Financials and Sharekhan. Some of these can be even short term stock picks.
Tata Communications provides network services and software-defined network platforms, and owns 500,000 kilometres (310,000 mi) of subsea fibre and more than 210,000 kilometres (130,000 mi) of terrestrial fibre.
Emkay Global has set a target on the stock of Tata Communications at Rs 1,480 and believes the stock is a good buy today.
According to the brokerage in its analyst meet, Tata Communications management echoed its six key platforms (growth pillars) for revenue growth while continuing to highlight the emphasis on higher wallet share mining in Top-1,000 customers (out of +5000 customers) through targeted initiatives.
After meeting 2 of the 3 financial targets outlined last year, it has upped Returns on Capital Employed goal to 25-30% in the medium term from 20%, with EBITDA margins in the range of 23-25%. Capex intensity would rise with incremental growth opportunities, without diluting Return On Capital Employed.
"We raise FY24E EBITDA by 5% on higher revenue growth and increase target EV/EBITDA multiple for the data segment to 10 times from 9.2 times to reflect improved Returns On Capital Employed and financial fitness. Maintain Buy with a revised sum of the parts based target price of Rs 1,480 on Jun'23E EBITDA," Emkay Global has said.
Another stock that Emkay Global is bullish on is the shares of Petronet LNG. The company has established LNG receiving and regasification terminal at Dahej, Gujarat and Kerala.
According to the broking firm, Q4FY21 standalone EBITDA/PAT of Rs 10.91 billion/6.23 billion were up 56%/74% yoy and down 18%/29% qoq but 3% above/8% below its own estimates.
The PAT miss was due to lower Other Income (down 43% yoy/56% qoq) and higher ETR of 27%. Emkay noted that The Dahej terminal operated at 93% capacity, above our 88% est.
Management stated Rs 52 billion of core capex in next five years, along with Rs 40billion/80 billion in compressed biogas/LNG retail, which are promising sectors but with low earnings visibility. Weak Q1FY22 utilization and offtakers asking for Dahej tariff in Kochi are dampeners.
"We cut FY22/23E EPS by 13%/11%, assuming lower volumes and Kochi tariffs. We also increase WACC and capex though not building retail/CBG into our earnings model. We hence lower our DCF-based target price by 15% to Rs 290. Maintain Buy but with equal weight stance," the brokerage has said.
Marico Industries is a leading player in the FMCG business with brands like Saffola and Parachute.
Sharekhan has a buy target on the share of Marico with a target price of Rs 562. According to the brokerage, the recent correction in copra prices, steady growth in core categories and a scale up in foods business improves earning visibility.
"Management has maintained its medium term target of achieving 8-10% volume growth in the domestic business. This will be driven by deepening penetration in rural market, market share gains in core categories and new product launches. Copra prices have corrected by 15% from their recent peak and are expected to remain flat along with softness in other edible oils in FY2022. Consolidated operating profit margin would stay at 19-20%. Stock saw a healthy run-up of 19% post Q4 results and positive management commentary. It is currently trading at 40 times its FY2023 estimated earnings," the brokerage has said.
The stocks mentioned above are taken from brokerage reports. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in