Motilal Oswal Stocks Idea For Monday: Gas, Auto Ancillaries Stocks Get Buy Call

Motilal Oswal, in its latest report, has suggested investors to buy 2 stocks from Gas & Petroleum sector and Auto Ancillaries sector for higher returns. These large cap and mid cap stocks are Bharat Forge Ltd and Gujarat State Petronet Ltd.

Motilal has suggested investors to buy Gujarat State Petronet with a target price of Rs 351. The analyst has recommended investors to buy Bharat Forge with a target price of Rs 985 apiece. Check key details below:

1. Buy Gujarat State Petronet Ltd

The last trading price of the stock is Rs 267 apiece with marginal intraday surge of 0.21%. Motilal Oswal has given buy rating to Guajarat State Petronet with a target price of Rs 351. If you buy Guajarat State Petronet now, you can fetch 31% return.

The company has a market capitalisation of Rs 15,112 crore. The stock has surged 16% in last 1-month only and gave returns of 27% in last 5-years. In last 3-years, the return is 22%. The 52-week high of the stock is Rs 332 apiece and 52-week low is Rs 209 apiece, respectively.

According to the leading brokerage, "We do not foresee a reduction in existing tariff due to the high capex proposed. Using the existing tariff, we estimate an FY24 EPS of INR19.3 for GUJS. If the PNGRB were to disallow even Phase I capex and cut tariff by 15%, the EPS will still work out to INR14.4. While it is difficult to accurately determine the tariff revisions, without any cut in tariff, our TP for GUJS stands at INR351. With a 15% cut in tariff, our TP gets revised down to INR332, resulting in an upside of 24% from its CMP. We reiterate our Buy rating on the stock."

2. Buy Bharat Forge Ltd

The last trading price of the stock is Rs 856 apiece with an intraday decline of 1.76%.

Motilal Oswal has maintained bullish view on the stock with a target price of Rs 985 apiece. If you buy Bharat Forge now, you can expect a return of 15% in near term.

The large cap company has a market capitalisation of Rs 39,870.16 crore. The stock, operating in Auto Ancillaries sector, has given 92% return in last 3-years and 18% in last 1-year.

The stock's 52-week high is quoted at Rs 896 apiece and 52-week low is quoted at Rs 595 apiece, respectively.

According to Motilal Oswal, "Defence business is fully ready for take off and is waiting for orders to come in. E-mobility business offers a large opportunity and has building blocks in place, but the competitive landscape is yet to evolve. We estimate a consolidated revenue/EBITDA/PAT CAGR of 14%/20%/24%, respectively, over FY22-25E. The stock trades at 25.6x/20.7x FY24E/FY25E consolidated EPS. We reiterate our Buy rating, with a TP of INR985 (at 25x Dec'24E EPS)."

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.