Sharekhan Gives Buy & Positive Ratings To These 3 Stocks Across Different Market-caps: Want To Buy Stocks?

Ashok Leyland Ltd

The Current Market Price (CMP) of the large-cap stock Ashok Leyland is around Rs. 150. Sharekhan has estimated a Target Price for the stock at Rs. 181. This stock has the potential to give a 20.66% return, in the upcoming 12 months. Sharekhan said, "We retain our Buy rating on Ashok Leyland Limited owing to its market share gains across segments and improving demand of buses. Q2FY23 results were above expectations, led by operating leverage benefits and softening of commodity prices, partially offset by higher employee costs. ALL is expected to benefit from its aggressive strategy of growing its market share through increased penetration across all regions, new product launches and well placed to benefit from e-mobility movement. The stock is trading at P/E of 22.8x and EV/EBITDA of 12.7x its FY2024E estimates."

Caplin Point Laboratories Ltd.

The Current Market Price (CMP) of the mid-cap stock Caplin is around Rs. 763. Sharekhan has estimated a Target Price for the stock at Rs. 930.86, with a positive rating. This stock has the potential to give a 22% return, in the upcoming 12 months. According to the brokerage firm, "Caplin reported a strong Q2FY2023 performance with topline and PAT rising by 18.3% and 21% y-o-y, respectively. Results are largely in line with estimates. Core LATAM business contributed to consistent topline and bottom-line growth in Q2, with strong cash flows. The company received 379 new product approvals across multiple countries in LATAM. Caplin Sterlite (US) revenue crossed Rs. 100 crore in H1; management is targeting revenue of Rs. 200 crore in FY2023. Management is confident of ending FY2023 with gross margin of 55%. It will consistently improve margins in the coming years."

Alicon Castalloy Ltd

The Current Market Price (CMP) of the small-cap stock Alicon is around Rs. 988. Sharekhan has estimated a Target Price for the stock at Rs. 1159. This stock has the potential to give a 17.30% return, in the upcoming 12 months. According to Sharekhan, "We maintain our Buy rating on Alicon Castalloy Limited led by rolling forward target multiple to December 2024E EPS. Q2FY23 results were slightly above expectations, with revenue, EBITDA and PAT beating estimates by 1.7%, 3% and 12%, respectively. We remain positive on the company's growth prospects, led by a robust order book, multi-year order wins, increased share of high-margin machined components, and higher share of the e-mobility business. Earnings to report a robust 118% CAGR during FY2022-FY2024E, led by a 27% revenue CAGR and a 300-bps improvement in EBITDA margin. The stock trades attractively at P/E multiple of 13.9x and EV/EBITDA multiple of 6.2x its FY2024E estimates."

Disclaimer

The above stocks were picked from the brokerage reports by Sharekhan. 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.