Domestic brokerage and research firm HDFC Securities has suggested four stocks that investors can buy in the next 2-3 quarters, which are from auto ancillary, NBFC and chemical sectors. Ramkrishna Forgings, Ricoh Auto, Repco Home Finance and Chemcon Specialty Chemicals are the top stock picks.
Ramakrishna Forgings: At a time when the CV cycle is on an upswing and new capacity is on inflow, the brokerage feels that RKFL is well positioned to drive structural reforms in the domestic forging segment.
“We believe investors can buy stocks in the band of 201-205 Add on more dips Band 178-182 for a reasonable price for the base case Reasonable Price of 230 and Bull Case 247 in the next 2-3 quarters.”
Ricoh Auto: Going forward, revenue visibility for Ricoh has improved and is expected to benefit from margin expansion as well. The note said that despite the recent increase in its share price, there is no reduction in valuation.
“We believe investors can buy into the stock” 55.5-57.5 Add on Bands and Dips 50-51 band for a reasonable price for the base case 62.5 Fair Value of Bull Case 68.5 in the next 2-3 quarters,” the brokerage recommended.
Repco Home Finance: “With competition from banks in reducing mortgages due to a boom in corporate lending, NBFCs like RHFL are likely to benefit from a less competitive intensity. The low current valuation provides a buffer for investors. We believe investors can buy between 228-233 Add more For a reasonable price of 198 base case Fair value of 257 and for bull case 278 in the next 2-3 quarters,” it said.
Chemcon Specialty Chemicals: HDFC Securities Strong double-digit revenue growth is projected with strong operating margins at around 32-33.5% over the next 2 years on the back of capacity expansion and strong demand.
“We think investors can buy this stock in K band Add more on 412-418 and rejection 361 base case for target Target 465 and Bull Case 503 in the next two quarters.”
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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