Shares to buy on May 13: Top 5 stocks on which brokerage firms are betting high upon
Shares to buy on May 13 are HCL Technologies, Shriram Transport, Satin Creditcare Network, Bharti Airtel and RITES that can give promising return in long-term perspective, says various brokerage firms' equity research experts.
Shares to buy is one of the major decisions that a stock market investor has to take while investing and for that they take various invstment expert opinions in this regard. However, the way Indian indices haves witnessed heavy selloff in last two weeks, market experts suggst them to take each and every minute details of the counter, especially its fundamentals. On the basis of that here are the top five stocks that various brokerage firms are betting high today:
1] Buy HCL Technologies for 26 pct gains, advises Elara Securities
HCL Technologies organic revenue growth guidance of 7-9.0% is in line with our expectations of 8.4% organic growth over FY20 and in the same range, as guidance provided by Infosys (INFO IN, CMP INR 721, TP INR 820, Accumulate). HCLT margin guidance of 18.5-19.5% is a full 100bp lower YoY (similar to that of Infosys). We believe this is just a temporary phase, with margin being affected in FY20, due to 1) investment ahead of integration of IBM products in June 2019, and 2) continued investments in Mode-2 segment that is 18.9% of revenue as on 4QFY19. Management confirmed gross margin for the Mode-2 segment is ahead of the company average and up YoY, but EBIT margin at 13.1% as on 4QFY19 is 590bp below the company average of 19.0%; it also has confirmed margin will expand once revenue in this segment scales up.
On suggestion to the stock market investors in regard to the HCL Technologies shares Ravi Menon, Analyst at Elara securities said, "The Fundaments of the HCL Technologies counter indicates that the counter is poised for an upside swing for up to 26 per cent. The counter may show Rs 1,430/stock levels in long-term perspective." The HCL Technologies share price is currently oscillating around Rs 1,132 per share levels.
2] Buy Shriram Transport for 18 pct gains, advises Narnolia Financial Advisors
NII of the Shriram Transport company increased by 2%/-6% YoY /QoQ, due to muted AUM growth of 8.5% YoY. The AUM growth was impacted due to lackluster real estate activity, slowdown in demand of CV as well as election period. Provisions during the quarter was Rs 540 Cr against Rs 97 Cr in 4Q FY18. PAT grew by 17% YoY.
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On suggestion to the stock market investors in regard to the Shriram Transport shares DEepak Kumar, Research Analyst at Narnolia Financial Advisors said, "The Fundaments of the counter indicates that the counter is poised for an upside swing for up to 18 per cent. The counter may show Rs 1,214/stock levels in long-term perspective." The Shriram Transport share price is currently oscillating around Rs 1,027 per share levels.
Yes Securities also suggest market investors to buy the Shriram Transport counter and their target for 12 months is Rs 1,220.
3] Buy Satin Creditcare Network for 43 pct gains, advises Yes Securities
Satin Creditcare Network, an NBFC company 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.
On suggestion to the stock market investors in regard to the Satin Creditcare Network shares a detailed research report send by Yes Securities Research Analysts Rajiv Mehta and Amar Ambani says that fundaments of the counter indicates that the counter is poised for an upside swing for up to 43 per cent. The counter may show Rs 440/stock levels in long-term perspective." The Satin Creditcare Network share price closed on Friday at Rs 307 per share levels.
4] Buy Bharti Airtel for 16 pct gains, advises HDFC Securities
Bharti Airtel’s 4QFY19 results were ahead of estimates. India revenue growth of 1.3% QoQ (wireless 4.3%) despite two days less and estimated EBITDA growth of around 9.8% were key positives. Bharti reported meaningful revenue/EBITDA growth in India business nearly after ten quarters (albeit Jio launch). Sustainability of this is key catalyst. Reiterate BUY with SoTP of Rs 374 (India Wireless @ 10x and Africa at 7.5x FY21E EBITDA).
On suggestion to the stock market in regard to the Bharti Airtel stock Himanshu Shah, Analyst, HDFC Securities said, "The fundamentals of the Bharti Airtel counter is strong and is poised to touch Rs 374 per stock levels." The Bharti Airtel counter c;osed at Rs 325 per shares on Friday means an investor can get around 16 per cent if he or she decides to invest in Bharti Airtel counter as told by the HDFC expert.
5] Buy RITES for 47 pct gains, advises Fairwealth Securities
RITES is one of the most promising stock today as its valuation matrix and daily chart breakout is quite positive. The stock would pick momentum once the Lok Sabha Elections 2019 are over. whichever government comes, they would have to focus on the infrastructure and being a semi-government company RITES share price is expected to get the benefit of this. RITES revenue of Rs 1503 Crore in FY18 is expected to grow at 20 per cent CAGR (Cumulative Annual Growth Rate) between FY18-21E and net profit of Rs 348 Crore in FY18 is estimated to grow at 26 per cent CAGR between FY18-
21E. It is trading at 8.3x FY20E earning and 7x FY21E earnings. On his suggestion to the stock market investors, Prakash Pandey, Head of Research at Fairwealth Securities said, "RITES share price has strong support at Rs 220-225 per share levels and can show Rs 280/stock levels in mid-term means two to three months. However, if a stock market investor holds this stock for one year, the RITES share price would touch around Rs 350/stock levels easily." He suggested investors buy the counter at the spot and add further if its dips up to 230-235 per RITES share levels. On Friday, the counter closed at Rs 236.7 per stocks.
So, these are the top five stocks that brokerage firms have bet high for May 13 trading session.