Shares to buy for short-term: Top 5 stocks experts bet high upon
Top five stocks on which market experts are betting high today are Symphony, Sobha Developers Limited, Prism Johnson, Muthoot Finance and Dish TV.
After showing some rally after the RBI's rate cut decision, the Indian indies soon lost the ground it had gained on Thursday intraday trade. this gives an indication that the markets would continue to remain fundamentally driven by overseas indicators till the Lok Sabha elections are due. So, our experts suggests that the investors should check the fundamental so of the scrip carefully before taking any investment decision.
On the expert opinion, here are the top 5 stocks that investors can think of before making any investment decision:
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Symphony reported a weak but in-line performance in a non-seasonal quarter. It delivered around Rs 3bn domestic revenues over second and third quarter of FY19 (Rs 3.8bn YoY) despite heavy channel inventory and 2 consecutive weak seasons. This reassures the distributors’ faith in the franchise and air cooler category. Moreover, Symphony was able to maintain its core strength i.e. off-season sales against 100 per cent cash advances. The co maintained its unique business model and clocked more than 90 per cent market share (non-seasonal) during 3QFY19.
Naveen Trivedi, Analyst, HDFC Securities told Zee Business in a detailed research report citing, "The fundamentals of the stock suggests 37 per cent upside potential. We recommend invetors to buy the stock for target of Rs 1,682." Currently, the counter is oscillating around Rs 1220/share levels.
2] Sobha Developers Limited
Sobha reported Revenue/PAT miss/beat of 10/8%. EBITDA margin expanded by 31bps YoY to 20.2% (-57bps QoQ). Whilst presales picked up in Kochi project post the flood impact, the overall presales is still muted at 0.9mn sqft (-12% QoQ) as markets like NCR (-63% QoQ), Mysore (-18% QoQ) and more importantly Bengaluru (-13% QoQ) have posted weak numbers, despite it being a festive season. SDL highlighted that the dip is only temporary and the sales velocity should see an improvement (especially in Bengaluru). SDL continues to aim for minimal inventory in completed projects (currently ~0.2mn sqft). It is increasingly bullish on the Bengaluru market, and feels affordable housing will remain key focus area (with a near term launch targeted in South Bengaluru). Maintain BUY with TP of Rs 646/share.
On suggestion to investors in regard to SDL stock Parikshit D Kandpal, Analyst, HDFC Securities told, "The SDL fundamentals suggests an upside potential for 34 per cent. We recommend investors to buy SDL stock for the target of Rs 646/stock levels." The counter is urrently hovering around Rs 480/stock levels.
3] Prism Johnson
Prism Johnson reported a standalone EBITDA of Rs 1.04bn, ahead of our estimates of Rs 0.87bn, and Bloomberg Consensus of Rs 0.94bn. It posted revenue growth of 11% of around Rs 14.3bn. EBITDA margin expanded 90bp YoY and 150bp QoQ to 7.2%, due to margin improvement in the cement businesses. The company posted a net profit at Rs 190mn, posting growth of 28% YoY and 170% QoQ.
On suggestion for the market invetors in regard to counter potential for return Ravi Sodah, Research Analyst at Elara Securities informed in a detailed research report, "The counter looks positive in short-term and can show an upside potential for around 72 per cent. An investor can buy the stock for the target of 129 levels." Currently, the counter is revolving around Rs 75 per stock levels.
4] Muthoot Finance
Muthoot Finance reported tad soft Q3FY19, with AUM growth of 15% YoY as against 17% last quarter on account of tighter liquidity condition in the market. NII at Rs10.9bn (flattish YoY) and PAT at Rs4.9bn (growth of 1% YoY) are both 6% below our expectations. Stage III loan assets are flattish sequentially at 2.0%. All the subsidiaries are witnessing healthy traction, accounting for 11% of the overall loan book. We have cut our earnings estimates by 2%/4% for FY19/20 respectively.
On outlook for market investors in regard to Muthoot Finance scrip, a detailed report by IDBI credited to Hatim Broachwala and Neelam Bhatia suggests that the counter is looking positive and poised for an upside swing of near 23 per cent. An investor can buy the scrip for the target of Rs 595 per counter. currently, the scrip is revolving around Rs 484 per stock levels.
5] Dish TV
Despite losing grip of the counter, experts are bullish on the stock. DITV’s 3QFY19 was in-line but weak. Modest subscriber additions at 142k and 3.5% QoQ decline in ARPU (2nd quarter in a row) to Rs 200 were key negatives. Performance may further weaken as Jio starts its competing ‘Giga Fiber’ services. DITV’s poor execution, governance (aggressive accounting and BS issues) and sharp swings in ARPU (almost every year/quarter) displeases investors.
Suggesting invstors in regard to Dish TV scrip outlook Himanshu Shah, Analyst, HDFC Securities told, "We recommend investors to maintain buy position in the scrip for the target of Rs 50 per stock levels." Currently, the scrip is revolving around Rs 23 per share levels.
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