Sharekhan Picks 3 Mid Cap IT, FMCG, & Auto Ancillaries Stocks To Buy For Gain

Leading brokerage firm Sharekhan has picked 3 stocks to buy as they are showing potential to offer return to investors. These stocks picks are Jyothy Labs Ltd, Coforge Ltd, and Amara Raja Batteries Ltd. If you buy these stocks now, you can obtain maximum likely return of 18%. These stocks are from IT Software, Auto ancillaries, and FMCG sectors. Check details below:

1. Buy Jyothy Labs: Sharekhan has placed buy call to leading mid cap FMCG sector stock, Jyothy Labs Ltd with target price of Rs 375 per share. If you buy Jyothy Labs shares at current market price of Rs 337 apiece, you can get likely upside of 12%. Jyothy Labs shares jumped 61% in last 3-months, gained 76% in last 6-months, and offered 112% return in last 2-years. Jyothi Labs has a market capitalisation of Rs 12,371.26 crore. The stock's 52-week high price is Rs 347.10 apiece and 52-week low price is Rs 174.55 apiece, respectively.

Jyothi Labs shares witnessed a surge of 2.79% in trade on August 25 on BSE.

According to Sharekhan, "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."

2. Buy Coforge Ltd: Sharekhan has assigned buy rating to mid cap IT Software stock Coforge share with price target of Rs 6200 apiece. Current market price of Coforge stock is Rs 5254.85 apiece with intraday fall of 2.52% as of August 25, 2023. If you buy Coforge shares at current market price of Rs 5254.85 per share, you can obtain likely gain of 18.01%. Its 52-week high price is Rs 5420.00 apiece and 52-week low price is Rs 3210.00 apiece, respectively. The company has a market capitalisation of Rs 32,110.95 crore.

Coforge shares rallied 22% in last 3-months, gained 42% in last 1-year. and offered return of 170% in last 3-years. In Last 5-years, Coforge stock soared 292%. Coforge declared an interim dividend of 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.

According to the analyst, "The entire stake sale by Promoter Baring PE has removed key overhang, shifting investor focus to the company's consistent performance which is likely to lead to the stock's re-rating. Hence, 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). We expect 16%/21% Sales and PAT CAGR over FY23-26E."

3. Buy Amara Raja Batteries: Sharekhan has recommended buy call to mid-cap auto ancillaries stock Amara Raja Batteries with target price of Rs 717 apiece. Current market price of Amara Raja Batteries share is Rs 624.20 apiece with intraday fall of 0.10% on BSE. If you buy Amara Raja Batteries share now, you can get potential upside of 15%.

Amara Raja Batteries has a market capitalisation of Rs 10,662.12 crore. In last 1-year, Amara Raja Batteries shares soared 21%, fell 8% in last 2-years, and 16% in last 3-years.

According to the brokerage house, "We maintain our Buy rating on the stock with a revised target price (TP) of Rs. 717 on account of expectation of healthy traction in replacement demand, 12.8% earnings CAGR along with 50-bps expansion in EBITDA margin over the next two years and opportunity to play in the Li-ion cell business."

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.