Stocks To Buy Next Week For Long-term Investors

Markets are expected to be volatile in the coming week, given the rising bond yields in the US. Here are a few stocks that investors can buy and hold for the long-term.

Mastek

Broking firm Anand Rathi sees a 20% upside in the stock of Mastek from the current levels and it has a buy call on the IT Stock.

"Mastek bounced back in Q4 with 4.9% sequential growth and a $194m order backlog, up 25% y/y. Management spoke about sustaining high growth till FY25 while reducing exposure to the UK and government businesses. It will achieve this by scaling up its Enterprise business in the US (new leadership) and Europe, and by acquiring some targets (revenue $35m) in the US (in FY23). FY23 fresher hiring targets are up 50% (to 1,000) to support growth. EBITDA margins to be maintained above 20% in FY23. We largely retain our FY23e/FY24e, but tweak our target to Rs.3,400 (23x FY24e, a 35% discount to LTI). We retain a Buy recommendation," the brokerage has said.

Angel One

Angel one is the largest listed retail broking house in India in terms of active clients on NSE as of December 31, 2021. Motilal Oswal sees a 20% upside in the stock of Angel One, post the quarterly results of the company.

Angel's operating revenue grew by a strong 16% QoQ and 77% YoY to INR4.1b (11% ahead of our estimate), driven by healthy Broking revenue and interest income. Growth in the Broking business was propelled by the F&O segment, which rose strongly to Rs 3.7 billion (up 117% YoY and 21% QoQ), whereas revenue from Cash Broking fell 9% YoY and 6% QoQ to Rs 857 million. The share of the F&O segment in gross Broking revenue further increased to 78% in 4QFY22 from 74% in 3Q

Angel One: Price target of Rs 2300

Motilal Oswal has raised its earnings estimates for Angel by 7%/11% in FY23/FY24, respectively, backed by a higher-than-expected revenue and strong margin performance in 4QFY22.

"We maintain our BUY rating with a revised target price of Rs 2,300 (premised on 20x FY24E EPS)," the brokerage has said.

Invest on declines as markets remain volatile

While the above two are good stocks recommended by reputed brokerage houses, a buy on decline would be a good strategy going ahead.

"The statement from the Fed Chairman that the interest rate action could be stronger next time around to tame the spiralling inflation gave an indication to the markets that there could be stronger measures by which inflation is brought under control but which may also impact growth to some extent. The still persistent war situation in Eastern Europe, likely rate action from the ECB, and also an enhanced rate response from the Fed are factors that will guide the markets in the coming week, and may also put pressure on prices," says Dr. Joseph Thomas, Head of Research, Emkay Wealth Management.

Disclaimer

The above stocks are picked from the brokerage reports of Anand Rathi and Motilal Oswal. Investing in equities poses a risk of financial losses and investors should understand the nature of the risk. 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.