Shares to buy on May 28: Top five stocks on which brokerage firms bet high today
NIIT, Maithan Alloys, Ashoka Buildcon, Varroc Engineering and IndiGo are the top five stocks behind which brokerage firms have put their weight.
Amid speculation about the bull run at the Dalal Street post-Narendra Modi victory in the Lok Sabha Elections 2019, stock market investors are guessing which stock would give them better return as they want the maximum return on their investment. To solve this problem of the share market investors in Indian indices, brokerage firms have given their top picks for them which we are providing them in a compiled format.
1] Buy NIIT for 83 pct gains, avises Elara Securities
NIIT revenue was slightly ahead of experts'estimates at Rs 2,397mn, up 7.6% YoY and 5.2% QoQ. As expected, B2B training exports segment corporate learning group (CLG) in the quarter dragged, given the slowdown in one of its large clients, and management suggests the pain could last for another quarter. CLG revenue at Rs 1,588mn was down 1.6% QoQ and up 9.4% YoY. India-centric B2C-oriented skills and career group (SNC) beat our estimates for the second consecutive quarter, with revenue of Rs 629mn, 6.5% above estimates, with a strong performance in StackRoute (targeted at reskilling IT professionals) and Talent Pipeline as a Service (TPaaS).
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On the suggestion to the stock market investors in regard to NIIT counter Ravi Menon, Analyst at Elara Securities said, "We reiterate Buy with a new Target Price of Rs 183 on a SOTP method, considering cash from the sale of a stake in NIIT Tech and its core business." The NIIT shares closed at Rs 100.6 per stocks on Monday.
2] Buy Maithan Alloys for 54 pct gains, advises HDFC Securities
Maithan Alloys is India’s largest producer & exporter of Mn Alloys with over two decades of experience. Manganese alloys are critical for steel manufacturing translating into a large globally addressable market for Maithan. Co’s customers include marquee domestic/global steel majors, with most of them being repeat customers.
On the suggestion to the stock market investors in regard to Maithan Alloys counter Prashanth KP Kota, Analyst, HDFC Securities said, "Fundamentals of the counter suggests an upside swing for around 54 per cent in the long-term perspective. The counter may show Rs 900 per stocks in 12-months." The Maithan Alloys shares closed at Rs 584 per stocks on Monday.
3] Buy Ashoka Buildcon for 78 pct gains, advises HDFC Securities
ABL delivered Rev/EBIDTA/APAT beat of 27/37/40%. FY19 order inflow/order backlog stood at Rs 63.5/83.9bn ex Rs 12.6bn L1. ABL aims new wins of Rs 40bn in roads, around Rs 15/10bn in railways and power during FY20E.
On the suggestion to the stock market investors in regard to Ashoka Buildcon counter Parikshit D Kandpal, Analyst, HDFC Securities said, "Fundamentals of the counter suggests an upside swing for around 78 per cent in the long-term perspective. The counter may show Rs 261 per stocks in 12-months." The Ashoka Buildcon shares closed at Rs 145.95 per stocks on Monday.
4] Buy Varroc Engineering for 48 pct gains, advises Yes Securities
Varroc Engineering’s (VEL), international automotive lighting business (VLS) reported a strong performance in Q4 FY19 with reported EBIDTA margins of 10.9% against 7.4% in Q4 FY18. Adjusted for Ind-AS, EBIDTA Margins were at 8.3% against 7.4% in Q4 FY18. In terms of revenues, the company reported €249mn, representing a growth of 3.8% yoy.
On the suggestion to the stock market investors in regard to Varroc Engineering counter Parikshit D Kandpal, Analyst, HDFC Securities said, "Fundamentals of the counter suggests an upside swing and the counter may show Rs 768 per stocks in 12-months." The Varroc Engineering shares closed at Rs 518 per stocks on Monday.
5] Buy IndiGo for 4 pct gain in one month, advises Equity Rush
IndiGo reports PAT (profit after tax) of Rs 5,896 million and EBITDAR of Rs 21,926 million for the quarter ended March 2019. Reported profit after tax of Rs 1,561 million and EBITDAR of Rs 52,245 million for the full fiscal year. These strong quarterly results are going to have a positive impact on the IndiGo stocks at Dalal Street. As per the stock market experts, the stock can give around 5 per cent return in one month.
Giving details about the fundamental impact of the quarterly results on the IndiGo share price Kunal Saragoi, CEO at Equity Rush said, "The fourth quarter results of the aviation company is quite promising and from the stock market perspective, the counter looks poised for around 3-4 per cent upside in short-term perspective from current levels." IndiGo shares closed at Rs 1,666.6 per stock levels on Monday.
So, these are the five stocks on which brokerage firms have bet high for the May 28 trade.
Disclaimer: These stock recommendations are from the brokerage firms and Zee Business portal is not endorsing any of these stocks for our readers.