Top 3 stocks to buy over next 2-3 quarters: Here are HDFC Securities’ picks
- ACC, Federal-Mogul Goetze (India) and Dr Reddy’s are the three top stock picks by HDFC Securities
ACC Ltd from the cement space, Federal-Mogul Goetze (India) Ltd from the auto ancillaries sector and Dr Reddy’s Laboratories from the pharma industry are the three top stock picks that domestic brokerage and research firm HDFC Securities has suggested that investors can look to buy with the time horizon of two to three quarters.
HDFC Securities' top stock picks -
ACC: ACC has a big scope for improvement in productivity and efficiency parameters as it currently lags a lot of its peers. The new owners could take steps to grab this low hanging fruits soon, the note stated.
“We believe investors can buy the stock in ₹2391-2440 band and add on dips to ₹2163-2207 band for a base case fair value of ₹2634 and bull case fair value of ₹2813 in 2-3 quarters.”
Federal-Mogul Goetze: FMGIL is the 2nd largest player in the organized market of pistons and piston rings in India with more than 30% market share.
“It has comfortable financial profile and has a slew of new launches lined up. We expect FMGIL to record growth in revenues and PAT 19/35% CAGR over FY22-FY24. We think investors can buy the stock in the band of ₹316-322 and add on dips to ₹271-277 band for a base case fair value of ₹354 and bull case fair value of ₹380 over the next 2-3 quarters,” HDFC Securities recommended.
Dr Reddy's: DRL is one of the few Indian players with a meaningful presence in China and a growing portfolio of filings that can transform into a structural growth driver for the company, it said.
“We expect the company to register revenue, EBITDA, and Adj. PAT CAGR of 9%, 22% and 15% respectively over FY22-24E. We feel investors can buy the stock in the band of ₹4318-4365 and add more on declines to ₹3893 for base case target of ₹4756 and bull case target of ₹5080 over the next two quarters," as per the brokerage.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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