Sharekhan Recommends Mid Cap FMCG, IT Stocks To Buy As Bullish Trend Prevails

Sharekhan has assigned buy call to two stocks from the FMCG and IT Software sector as both the stocks are showing potential to soar. These two stocks are Coforge Ltd and Jyothy Labs. If you buy both the mid cap stocks, you can likely get potential return of 17%. Check details below:

1. Buy Jyothy Labs Shares: Sharekhan has assigned buy call to mid cap FMCG sector stock Jyothy Labs with target price of Rs 375 per share. Last trading price of Jyothy Labs share is Rs share is Rs 339.70 per share on BSE. If you buy Jyothy Labs stock now at its last trading price, you can fetch potential return of 10.62%.

The stock's 52-week high price is Rs 347.10 apiece and 52-week low price is Rs 174.55 apiece, respectively. The company has a market capitalisation of Rs 12, 474.08 crore. Jyothy Labs stock gained 78% in last 6-months, soared 80% in last 1-year, and jumped 110% in last 2-years.

According to Sharekhan, "The stock has seen a good run-up in the recent times and is trading at 37x/31x its FY2024E/FY2025E EPS, which is at discount to the valuation of some of the mid-large consumer good companies. Improving cash flows, a focus on sustaining double-digit revenue growth with decent volume growth and strong earnings visibility make it a good small-to-mid cap pick in the consumer goods space. We maintain a Buy on the stock with a revised price target (PT) of Rs. 375."

The company for the quarter ended June 30, 2023 announced a surge of 13.07% in its consolidated total income at Rs 704.04 crore as against its last quarter total income of Rs 622.65 crore.

2. Buy Coforge Shares: Last trading price of IT Software sector stock is Rs 5293.35 apiece on BSE. Sharekhan has assigned buy call to Coforge with target price of Rs 6200 apiece. If you buy Coforge shares at last trading price, you can fetch potential gain of 17%. Its 52-week high price is Rs 5420.00 per share and 52-week low price is Rs 3210.00 apiece, respectively.

The Board of Directors at their meeting held today on July 20, 2023 has declared interim dividend of Rs. 19/- (Rupees Nineteen only) per Equity Share of the Company the face value of Rs. 10/- each fully paid-up, for the financial year 2023-24 and August 03, 2023 has been fixed as Record date for the purpose of ascertaining the eligibility of shareholders for payment of interim Dividend.

Coforge shares offered a return of 49% in last 1-year and surged 165% in last 3-years.

According to Sharekhan, "We maintain Buy rating on Coforge with a revised PT of Rs. 6200 (increase in PT reflects rollover of valuation multiple to Sept 25 EPS).Stock trades at 26.6x/22.9x its FY25E/26E EPS. We believe the company is well placed to achieve its FY24 revenue and margin guidance due to the consistently robust order intake and strong 12-month executable order book. We expect 16%/21% Sales and PAT CAGR over FY23-26E."

The company for the quarter ended June 30, 2023 announced its consolidated total income at Rs 2237.00 crore, up 2.96% as against its last quarter total income of Rs 2172.60 crore.

Disclaimer:The stocks have been picked from the brokerage report of Sharekhan. 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.