Shares to buy on May 10: Top 5 stocks on which brokerage companies bet high today
Stock market brokerage firms have put their weight behind these top five stocks today — Brigage Enterprises, KEC International, CDSL, Alembic Pharma and SCNL.
The stock market of India is witnessing heavy selloff these days and the 50-stock Nifty itself has lost to the tune or near 600 points after making a lifetime high of 11,856. The BSE Sensitive index Sensex too nnosedived around 1,000 points after making an all-time high of 39,487. So, it becomes important for the stock market investors to choose their stocks cautiously. As per the market experts, here are the top 5 picks by various brokerage firms:
1] Buy Bridage Enterprises for 40 pct gains, advises Elara Securities
Brigade Enterprises consolidated revenue grew by 75.3% YoY to Rs 7.6bn on the back of projects, which were completed during the quarter. Operationally, it was another strong quarter with pre-sales up 122% YoY and 17% QoQ to Rs 5.2bn, aided by a strong response for its Utopia (Bangalore) project, which was launched in Q3-Q4FY19. Collections were up 31.2% YoY to Rs 6.2bn.
Speaking about the fundamentals of the Brigade Enterprises stock Aarti Rao, Analyst at Elara Securities said, "Leasing and hospitality income was up 11.3% YoY at Rs 805mn and up 16.5% YoY at Rs909mn in Q4FY19. Brigade Enterprises' EBITDA was up 59.8% YoY at Rs 2.2bn and margin at 28.3% in Q4FY19. Other income was higher at Rs 178mn along with higher tax spend at 37.4%. As a result, PAT was up 121% YoY at Rs 597mn. Net debt rose by Rs 1.2bn QoQ at Rs 29.5bn. Adjusted for the SPV stake, net debt stood at Rs 24.7bn. Brigade Enterprises has a growing annuity income portfolio, which is likely to post a 30% CAGR over FY19-21E."
"The counter is showing an upside potential for near 40 per cent and can show around Rs 320 per stock levels in one year," Rao suggested investors. Currently, the counter is oscillating around Rs 225 to 235 per stock levels.
2] Buy KEC International for 53 pct gains, advises Elara Securities
KEC International management guided for revenue growth of 15-20% in FY20 (our estimates of 18%) on the back of strong T&D orderbook of Rs 150bn, execution in railways and the civil business. The company expects the SAE business to grow by 30-40% as execution in Brazil picks up and railways revenue could touch Rs 23-24bn in FY20 from Rs 19bn in FY19 (exceeding target of Rs 17bn). It expects EBITDA margin of 10.0-10.5% in FY20 (FY19: 10.5%).
On the suggestion to the share market investors in regard to KEC International stock Harshit Kapadia, Analyst at Elara Securities said, "The fundamentals of the counter suggests huge upside swing for the counter. An investor can expect around 53 per cent growth in the counter in long-term and can touch Rs 450/stock levels." currently, the KEC International stock is oscillating around Rs 294/stock levels.
3] Buy CDSL for 48 pct gains, advises HDFC Securities
Central Depository Services (India) Ltd or CDSL annuity revenue stream is driving growth led by un-listed opportunity. Company's revenue was up 10.4% QoQ to Rs 505mn (vs est. of Rs 485mn). Growth was supported by 1.5/3.7% QoQ rise in Issuer charges/Transaction revenue. Around 1,400 un-listed companies applied for demat services by paying around Rs 21K/company. CDSL is adding around 200-250 issuers per month. This additional revenue can boost Issuer charges by around 6-7% for FY20E.
Speaking on the sugestion to the market investors in regard to the CDSL counter Amit Chandra and Apurva Prasad, Analyst, HDFC Securities says, "The fundamentals of the CDSL counter suggests an upside swing to the target of Rs 335 per stocks." currently, the CDSL counter is around Rs 226 means if the experts' turns good an investor can pocket up to 48 per cent returns.
4] Buy Alembic Pharma for 14 pct gains, advises Narnolia Financial Advisors
Revenue for the year grew by 26% YoY to Rs 3935 crs mainly driven by strong growth in the International business. US business saw robust growth on account of valsartan opportunity in Q2 and Q3 of FY19. ROW business got a boost from the AOK tender win this year though sales in Q4FY19 was partly impacted by serialization in Europe.
On suggestion to the stock market investors in regard to the Alembic Pharma counter Vineeta Sharma, Research Analyst at Narnolia Financial Advisors said, "Fundamentals of the company suggests an upside swing of around 14 per cent and in short-term perspective the stock can show Rs 632/stock levels from its current Rs 552/share levels."
5] Buy Satin Creditcare Network for 43 pct gains, advises Yes Securities
Satin Creditcare Network delivered a reasonably strong AUM growth of 25 per cent YoY under the stand-alone entity SCNL while on consolidated basis the AUM growth stood at 23 per cent YoY for FY19.
In a detail research report attributed to the Yes Securities' research analysts Rajiv Mehta and head of research Amar Ambani the fundamentals of the Satin Creditcare Network are quite strong and show an upside momentum for nera 43 per cent in 12-month perspective. The research report gives Rs 440/stock target for the coutner in this period of 12-months. Currently, the counter is oscillating around Rs 307/stock levels.