Motilal Oswal Bets On 4 Top Stocks To Buy In November, After Robust Revenue Gain

Over the past two weeks in November, Indian stock markets are performing flat. Sensex quoted at 62,024.47.72 points and Nifty closed at 18,414.55 points, at the time of writing in the early morning trading hours. However, Motilal Oswal bets on these 4 top stocks to buy, after the companies posted a robust revenue gain.

Indian Hotels

Indian Hotels is a top tata group stock that has 68.81% returns in 2022, post-pandemic. The brand's consolidated revenue in 2QFY23 grew 69% YoY (-3% QoQ) to Rs. 12.3b, EBITDA surged 4x YoY (-22% QoQ) to Rs. 2.94b. Adjusted PAT stood at Rs. 1.1b v/s a loss of Rs. 1.1b in 2QFY22. The current market price of the stock is Rs. 310.70/ share. Motilal Oswal mentioned, "We expect the strong momentum to continue in FY23 and FY24, led by a further improvement in ARR and occupancy due to favorable demand-supply dynamics; higher income from management contracts; and unlocking value by launching re imagined and new brands." The firm reaffirmed the buy rating on the stock with a target price of Rs. 365.

Mahindra & Mahindra

Mahindra & Mahindra is one of the best picked stocks in the auto sector by the brokerage firm. The current market price of the stock is Rs. 1,278.20/share. The company's standalone revenue/EBITDA/adjusted PAT grew 57%/50%/39% YoY to Rs. 208.4b/Rs. 25b/Rs. 23.4b in 2QFY23, while volumes grew 43% YoY. Net realizations grew 9% YoY and 6% QoQ to Rs. 762.7k/unit. "A strong order backlog in SUVs will continue to boost its performance, supported by capacity expansion and RM cost savings. We raise our FY23/FY24 standalone EPS estimate by 4% each to factor in strong realizations in the Auto business and higher other income," Motilal Oswal stated. The firm reaffirmed the buy rating on the stock with a target price of Rs. 1470.

Apollo Hospitals (APHS)

The current market price of the stock is Rs. 4,454.30/ share. Motilal Oswal said, "We remain positive on APHS due to a favorable case-mix and increasing occupancy driving better prospects for Healthcare Services, strong franchise in the Pharmacy space, with healthy store additions, and ongoing investments to enhance its franchise under Apollo 24/7." The firm reaffirmed the buy rating on the stock with a target price of Rs. 5600. Is revenue grew 14% YoY to Rs. 42.5b in 2QFY23, revenue from mature hospitals grew 9% YoY to Rs. 16b. EBITDA margin expanded by 310bp YoY to 28.1% in 2QFY23. Revenue from Apollo HealthCo, comprising Pharmacy distribution (offline and online) and Apollo 24/7, grew 43% YoY to Rs. 16.7b.

Hindalco

The current market price of the stock is Rs. 439.85/ share. The brokerage firm said, "We have raised our FY23E/24E EBITDA by 8%/15% driven primarily by the 54%/58% hike in India business, respectively. As a result, our consolidated PAT has increased 13%/23% for FY23E/24E, respectively. We have slightly increased our LME aluminum price assumption for FY23 to USD2,472/t." The firm reaffirmed the buy rating on the stock with a target price of Rs. 520. Hindalco's consolidated net sales stood at Rs. 562b, with 18% YoY gain. Higher YoY sales were driven by strong performance from Asia operations of Novelis and higher copper ASP. Hindalco's 1HFY23 Sales/EBITDA/PAT stood at Rs. 1,142b/Rs. 138b/Rs. 63b, respectively, while sales rose 28% YoY.

Disclaimer

The above stocks were picked from the brokerage report by Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.