Broking houses are recommending select stocks to buy for the long term. Here are a list of stocks, where brokerage houses are bullish on and investors can buy next week. It's important to note that markets are at new peaks and most analysts believe that the indices are stretched at these levels and hence caution is advised.
Vardhman Special Steels
ICICI Direct is bullish on the stock of Vardhman Special Steels and has recommended a buy on the stock with a price target of Rs 300, as against the current market price of Rs 245.
The company is a producer of Special and Alloy Steels, and caters to diverse requirements of hot rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries.
"On the back of healthy operating environment, we remain positive on the stock. On the back of recent price hike received by the company from OEMs, we upward revise our estimates both for FY22E and FY23E. We value the stock at 7.5x FY23E EV/EBITDA and arrive at a target price of Rs 300 (earlier Rs 240). We maintaining BUY recommendation on the stock," ICICI Direct has said.
Broking firm Anand Rathi has placed a buy on the stock of MOIL. The company is a leading miner in the manganese business.
MOIL Ltd reported revenue of Rs 4,501 million in Q4 FY21 as compared to Rs 2,487 million in Q4 FY20, a growth of 81% YoY. High growth rate was primarily on account of better volume of manganese ore and core product non fines ore. Sales of manganese ore have increased to 4.13 lakh metric tonnes during Q4 FY21, which were 2.97 lakh metric tonnes in Q4 FY20, an increase of 39%.
"We continue to remain positive on the company given its long term growth drivers continue to be well in place. We maintain our BUY rating on MOIL with a revised target of Rs 240 per share," the brokerage house stated.
Shares of MOIL close at Rs 195, which means the target price of Rs 240, leaves at least a potential of 20% upside on the stock.
ICICI Securities has raised the target price on engineering conglomerate, Larsen and Toubro (L&T).
"We hosted Larsen & Toubro (L&T) at ICICI Securities Virtual ESG Conference'21 on 25th Jun'21. The representatives elaborated on the various initiatives taken in terms of water conservation, steps to reduce electricity consumption, carbon neutrality, etc. An insight into the company's defence business was also provided. Factoring-in the change in market cap of subsidiaries, we raise the target price for L&T to Rs 1,760 (earlier Rs1,670)," ICICI Securities has said.
"Given the business moat in terms of execution capabilities, we assign a target P/E multiple of 22x to the standalone business. Hydrocarbon business has been valued separately at 18x FY23E earnings, and ‘other businesses' as per industry norms. We arrive at an SoTP-based target price of Rs 1,760 where the standalone business is valued at Rs881, and other subsidiaries, associates and BOT assets at Rs 879 (post holding company discount @20%) per share)," the brokerage said.
All of the above stocks are picked from the report of brokerages. Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.