These 4 stocks are HDFC Securities' top picks over the next two to four quarters
HDFC Securities' stock picks vary from different sectors pharmaceutical, defense, branded apparels industries
Domestic brokerage and research firm has picked four stocks as recommendations that vary from different sectors like healthcare facilities, pharmaceuticals, branded apparels and aerospace/defense space with the time horizon for the next two to four quarters, which are Shalby Ltd, Indoco Remedies, Rupa & Company, and Hindustan Aeronautics Limited.
Here are HDFC Securities' stock picks over the next two to four quarters -
Indoco Remedies: The brokerage said that the drug firm is expected to post strong growth in India business due to opportunities arising from Covid portfolio and led by new launches in FY22.
"We feel investors can buy the stock in ₹457-462 band and add more on dips at ₹413-419 band for base case target of ₹506 and bull case target price of ₹540 over the next two quarters," HDFC Securities said in a note.
Hindustan Aeronautics (HAL): "Given strong balance sheet, robust order book and execution capabilities, we feel investor can buy stock in the ₹1060-1080 band and add more on dips to ₹900-920 band for the base target of ₹1300 and bull case target of 1461 over the next four quarters," the note stated. It estimates long term revenue and profit to grow on account of the robust order book, decades of opportunity, and control over operating costs.
Rupa & Company: The brokerage is positive on the future growth outlook of Rupa & Company. Going forward, it expects continued re-rating of the company which would be driven by its sustained better operating performance with strong free cash flow generation which is expected to keep the company net debt free.
“We recommend Buy on dips at ₹387 and add further on dips at ₹360 and feel the base case fair value of the stock is ₹428 and bull case fair value is ₹468. Investors can buy the stock on dips at ₹387and further add on dips at ₹360." (Time horizon: two quarters).
Shalby Ltd: Shalby Ltd is one of the leading multi-specialty chains of hospitals in India. Introduction of franchise model, better occupancies and new service offerings (home care & Shalby Care cards) are the key triggers for the company. HDFC Securities has initiated coverage on the stock as it expects the company likely to benefit from this trend due its strong market position and established brand name, especially in this segment.
“We recommend Buy in the 185-188 band and add on dips to ₹166-168 band and believe the base case fair value of the stock is ₹211 and the bull case fair value of the stock is ₹235 over the next two quarters."
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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