Top 3 stocks to buy in next 2-3 quarters: Here are HDFC Securities’s picks

HDFC Securities’ top stock picks ,

ACC: ACC has a huge scope for improvement in productivity and efficiency standards as it is currently lagging far behind its peers. The note says that new owners may soon take steps to grab this low-hanging fruit.

“We believe investors can buy into the stock” 2391-2440 Add on Bands and Dips Reasonable price for base case of band 2163-2207 2634 and the fair value of the bull case 2813 in 2-3 quarters.”

Federal-mogul Goetz: FMGIL is the second largest player in the organized market of Pistons and Piston Rings in India with a market share of more than 30%.

“Its financial profile is comfortable and has several new launches. We expect FMGIL to register a growth in revenue and PAT 19/35% CAGR in FY22-FY24. We think investors can buy this stock in K band 316-322 Add on more dips Band 271-277 for a reasonable price for the base case 354 and the fair value of the bull case 380 in the next 2-3 quarters,” HDFC Securities recommended.

Dr Reddy’s: DRL is one of the few Indian companies that has a significant presence in China and a growing portfolio of filings could turn into a structural growth driver for the company.

“We expect the company to record revenue, EBITDA and Adj. The PAT CAGR as compared to FY22-24E is 9%, 22% and 15% respectively. We think investors can buy this stock in K band 4318-4365 Add more on Rejections 3893 base case for target 4756 and target of the bull case 5080 in the next two quarters,” according to the brokerage.

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