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Domestic brokerage and research firm HDFC Securities, while sharing its top picks, has recommended three stocks that investors can look to buy, which are from construction, auto ancillaries and real estate sectors with the time horizon of over next two to four quarters. The three stock picks are J Kumar Infraprojects Ltd, LG Balakrishnan & Bros. Ltd, and Mahindra Lifespace Developers Ltd.

HDFC Securities top stock picks -

J Kumar Infra: The brokerage believes J Kumar Infra is one of the key beneficiaries of increasing government focus on the urban mobility space over the next few years. Its focus on margins and cash flow generation augurs well from a long-term perspective.

“We think the base case fair value of the stock is 343 and the bull case fair value is 364 over the next two-three quarters. Investors can buy the stock in the band of 307-313 and add more on dips to 270-276 band," it suggested.

LG Balakrishnan: “Given the strong growth in domestic 2W market, we continue to remain bullish on the prospects of the company in the medium term. Its replacement sales will keep growing given the large base of 2W and offset some concerns due to the imminent threat of EV in 2W that use minimal transmission products. We believe investors can buy the stock on dips in the band of 675-685 and add more on dips to 607-617 band for a base case fair value of 770 and bull case fair value of 838 over the next 2-3 quarters," said HDFC Securities.

Mahindra Lifespace: Mahindra Lifespace is one of the few organised players with a strong balance sheet and benefits from attractive cost of capital which enhances its competitive position. Minimal inventory, negligible debt (considering deferred land payments); the company is well placed to acquire new projects to ride the upcycle, the brokerage highlighted.

“We are positive on the company and have arrived at NAV-based base case target price of 479 and bull case target of 521. Investors can buy the stock in the band of 432-440 and add more on dips to 391-398 band for a time horizon of three-four 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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