Stocks Ideas For Next Week To Buy And Build A Portfolio

The Nifty hit a new 52-week low, as aggressive US Fed bets pushed investors to sell, particularly Foreign Portfolio Investors. Here are a list of stocks that you can buy and build a portfolio, picked from Sharekhan.

Mahindra Lifespace

One of the stocks that Sharekhan is betting on its the stock of Mahindra Lifespace. The firm has set a price target of Rs 485 on the stock.

Mahindra Lifespace Developers launched almost a 1msf in Q1FY2023 across regions (NCR, Pune, Bengaluru) with an estimated sales value of over Rs. 1100 crore (including GST) garnering a strong response from buyers. The company's historical strike rate of achieving 40-60% of sales during launch should lead to over Rs. 350 crore sales booking alone from two projects (Pune sales may contribute towards Q2FY2023 sales) apart from sustenance sales from other ongoing projects. The scale-up in sales booking is material considering Rs. 145 crore/Rs. 328 crore residential sales achieved during Q1FY2022/Q4FY2022.

 

Mahindra Lifespace: Price target of Rs 485 on the stock

Mahindra Lifespace Developers has been garnering strong buyer interest across regions which are expected to lead to scale up in sales booking during FY2023 and beyond. Further, it has been able to execute strong JD agreements and is further expected to maintain the momentum. "We expect execution and operational profitability to follow led by a strong management team at the helm having credible experience in their respective fields. Further, the company is expected to benefit from the government's relentless focus on affordable housing segments, rising affordability levels, favorable state government policies for real estate and ample inorganic growth opportunities. The company's low gearing can be utilised to raise debt to fund land acquisitions. Hence, we retain a Buy on the stock with a revised price target of Rs. 485 factoring in a higher sales run rate," the broking firm has said.

Buy Tata Consultancy Services for a price target of Rs 3800

"We have reduced our earnings estimates for FY23-25E by 2-4% to factor in moderation in USD revenue growth owing to adverse currency movements and anticipation of moderation in technology spending due to increasing macro risks and possibilities of US recession. However, we believe that TCS has a robust business model which would leverage the G&T opportunities most given its strong digital competencies and solid execution capabilities," says Sharekhan.

 

Dollar revenues and earnings to rise

Sharekhan's expects the company's US Dollar revenues and earnings to clock a 10.5%/12% CAGR over FY2022-24E. "At current market price, the stock trades at valuation of 27x/24x its FY2023E/FY2024E earnings. We have lowered out target multiples considering higher interest rates and lower growth assumptions owing to increasing concerns around US slowdown/ recession. Given a better supply-management capability than its peers, strong margin profile and excellent payout ratios, we maintain a Buy on TCS with an unchanged price target of Rs. 3,800," the brokerage has said.