Home / Markets / Stock Markets /  HDFC Securities recommends these 2 stocks to buy over next 2 quarters. Its top picks

Domestic brokerage and research firm HDFC Securities, while sharing its top picks, has recommended two stocks that investors can look to buy, which are from Footwear and Auto Ancillaries sectors with the time horizon of over two quarters. The two stock picks are Metro Brands Ltd and Suprajit Engineering Ltd.

HDFC Securities' top stock picks -

Metro Brands: Metro is one of the leading Indian footwear specialty retailers present in India, has a right mix of brands (three umbrella brands + two EBO tie-ups) providing growth opportunity going forward. Given the ongoing trend of e-commerce adoption in footwear space, Metro has ramped up capabilities with separate platforms for its three umbrella brands and is also ramping up its digital presence. Besides, the company is also very efficient on cost optimization and profit generation, the note stated.

“Metro’s asset light business model with an efficient business model, potential of growth in third party brands, strong fundamentals with robust revenue and profitability growth, zero debt status and strong promoter & experienced management team brings positive view on the stock," it said.

"Investors could buy in the 571-583 band and add more on dips in the Rs. 506-516. Base case fair value of the stock is 634 and the bull case fair value of the stock is 683 over the next 2 quarters. 

Suprajit Engineering: SEL is well placed to gain from the revival in automobile demand. Its acquisition of light cable division of Kongsberg would provide it with access to low cost manufacturing facilities as well as a footprint in large markets of China and North America, as per the brokerage.

“SEL would continue to trade at a premium given its market leadership in the cables segment, strong returns profile, strategic acquisitions and diversification of revenues. We believe investors can buy the stock in 355-363 band and add more on dips to 315-323 band for a base case fair value of 395 and bull case fair value of 433 over the next two quarters," it added.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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