Motilal Oswal Picks 2 Stocks With Buy, Neutral Rating: 57% Return Seen

Motilal Oswal has picked 2 stocks with buy and neutral ratings. The analyst has recommended investors to buy Brigade Enterprise Ltd with a target price of Rs 720 and a potential return of 57%. Motilal Oswal has maintained neutral rating for Avenue Supermarts with a target price of Rs 4100 apiece. Check key details below:

1. Buy Brigade Enterprise Ltd

Motilal Oswal has given buy call to Brigade Enterprise Ltd with a target price of Rs 720. The current market price of the stock is Rs 458 apiece and if you buy Brigade Enterprise Ltd at this price, you will get 57% return.

The stock's 52-week high is Rs 585 apiece and 52-week low is Rs 385 apiece, respectively. The company has a market capitalisation of Rs 10,575 crore. The mid cap real estate sector stock has given 112% return in last 3-years and 123% return in last 5-years.

According to Motilal Oswal, "We maintain our estimates across the residential and commercial segment as the company reiterated its 15-20% volume growth guidance in residential segment and remains confident of fully leasing its commercial segment by 1HFY24. Thus, pick-up in business development activity by BEL will lead to re-rating in valuation for its residential segment. We reiterate our Buy rating with an unchanged SOTP-based TP of INR720, implying a 55% upside potential."

2. Avenue Supermarts

The current market price of the stock is Rs 3989 apiece with an intraday fall of 1.70%. Motilal Oswal has maintained neutral rating for Avenue Supermarts with a target price of Rs 4100 apiece.

The company has a market capitalisation of Rs 2,58,426 crore. The large cap stock has given 231% in last 5-years and 116% in last 3-years. The shares have fallen 16% in last 1-year.

According to Motilal Oswal, "DMART's standalone revenue grew 25% YoY to INR113b, 6.2% below our estimate. This was largely due to the area addition of 23% YoY where the blended revenue per sqft (annualized) declined 2% YoY to INR36,100, led by increase in average store size. As per our calculation, the LTL growth in 3QFY23 should be in mid-single digit. The management previously indicated that a higher store size takes longer to reach stable revenue per sqft state."

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. 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.