Motilal Oswal Retains Buy, Hold Call To 4 Large Cap Bluechip Stocks For Good Return

Brokerage firm Motilal Oswal has assigned neutral and buy rating to 4 leading large cap bluechip stocks for good gain. These stocks are Hindustan Unilever, Asian Paints, Sun Pharmaceutical Industries Ltd, and Hindustan Zinc. Check details below:

1. Buy Hindustan Unilever

The analyst has assigned buy call to Hindustan Unilever with a target price of Rs 3100 apiece. Last trading price of large cap FMCG Sector stock is Rs 2548.35 apiece.

If you buy Hindustan Unilever shares now, you will potentially receive 22% return, Its 52-week high is Rs 2741.00 apiece and 52-week low is Rs 1901.80 apiece, respectively. The company has a market capitalisation of Rs 5,98,758.09 crore.

The stock has rallied 13% return in last 1-year, 24% return in last 3-years, and 87% in last 5-years. It has tumbled 4% in last 1-month.

According to Motilal Oswal, "HUVR's operating performance in 3QFY23 was in line with expectations. PBT and PAT beat our estimates by ~8%, driven by higher-than-expected other income. Maintain Buy with a TP of INR3,100 (55x FY25E EPS)."

2. Buy Sun Pharmaceutical Industries Ltd

Motilal Oswal has recommended investors to buy Sun Pharma shares with a target price of Rs 1200 apiece. The last trading price of the stock is Rs 1030.10 apiece on BSE. If you buy Sun Pharmaceutical Industries Ltd now, you will potentially get 17% return.

The large cap stock's 52-week high is quoted at Rs 1070.80 apiece and 52-week low is Rs 785.00 apiece, respectively. The company has a market capitalisation of Rs 2,47,149.70 crore.

According to Motilal Oswal, "SUNP continues to outperform in branded generics in India, as well as other emerging/ROW markets. We expect a 16% earnings CAGR over FY23-25, led by a 17%/11% sales CAGR in the US/emerging markets and RoW, aided by a 110bp margin expansion. We continue to value SUNP at 25x 12M forward earnings to arrive at a TP of INR1,200."

3. Asian Paints

The brokerage firm has assigned neutral call to Asian Paints with a target price of Rs 3090 apiece. The last trading price of the stock is Rs 2788.10 on BSE with 52-week high at Rs 3590.00 apiece and 52-week low is Rs 2560.25 apiece, respectively.

If you buy Asian Paints, it indicates an upside of 11%. The company has a market capitalisation of Rs 2,67,433.94 crore. The large cap Building Materials sector stock declined 15% in last 1-year, 11% in last 3-months, and rallied 50% in last 3-years, and 134% in last 5-years.

According to the analyst, "We have assumed FY24 gross/EBITDA margins at the top end of the management's guidance. While improving margins would lead to better ROCEs, new capex plans might dilute the same. The stock remains expensive at ~52.7x FY24E EPS and 46.4xFY25 EPS. We reiterate our Neutral rating with a TP of INR3,090 (premised on 50x FY25 EPS)."

4. Hindustan Zinc

Motilal Oswal has assigned neutral rating to Hindustan Zinc with a target price of Rs 350 apiece. The last trading price of Hindustan Zinc is Rs 353.05 apiece with intraday fall of 6.49%.

The stock has a market capitalisation of Rs 1,49,174.89 crore. Its 52-week high is Rs 383.00 apiece and 52-week low is Rs 242.40 apiece, respectively. The stock has rallied 7% in last 1-month, 27% in last 3-months, 10% in last 1-year, and 63% in last 3-years.

According to Motilal Oswal, "We have raised our FY24 estimates to incorporate the cost reduction benefits. At its current levels, HZ is trading at a rich valuation of 6.7x FY24 EV/EBITDA. We reiterate our neutral rating on the stock for a target price of INR350 (6x FY24 EV/EBITDA)."

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.