Home / Markets / Stock Markets /  These three stocks are HDFC Securities' top picks over the next two quarters

Focusing on the time horizon for the next two quarters, the retail research team at HDFC Securities has picked three stocks for recommendations which vary from different sectors like IT consulting, packaging and chemicals sectors - HCL Technologies, Garware Hi-tech Films, and Phillips Carbon Black.

Here are HDFC Securities' stock picks over the next two quarters -

HCL Technologies: The domestic brokerage firm said the company has a good track record in client acquisitions and engaging in vendor consolidation opportunities over the recent past. HCL Tech has strong presence in data science and engineering. Further, taking into the consideration the opportunities in cloud consumption, cyber security, automation, app modernisation, we remain optimistic on HCL Tech’s revenue and margin trajectory as well as cost rationalisation efforts going forward, it added.

''We believe the base case fair value of the stock is 1155 and the bull case fair value of the stock is 1240 over the next two quarters. Investors can buy in the 1053-1074 band and add further on dips in the 945-965 band.''

Garware Hi-tech Films: GHL trades at a premium as compared to other poly film peers. This is justified as the company derives 76% of its revenue from value-added products as compared to other companies which primarily deal in commodity (packaging films) products. HDFC Securities believes the company is at an inflection point and has a positive view on the stock.

''We feel the base case fair value of the stock is 1312 and bull case fair value is Rs. 1434. Investors willing to take risk can buy the stock in the range of Rs. 1135-1150 and add on dips at 1004.''

Phillips Carbon Black: Market leadership of PCBL in the domestic carbon black industry along with an increasing global footprint, healthy operating efficiency, financial flexibility (a part of the established RP-Sanjiv Goenka Group) and strong financial risk profile are the key drivers.

''We think the base case fair value of the stock is 281 and the bull case fair value is 303 over the next two quarters. Investors can buy the stock in the 253-255 band and add more on dips to 223-225 band,'' HDFC Securities said in the note.

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

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