Top shares to buy: Here are the top pick counters for market investors, say experts
On the basis of strong fundaments, market experts are advising investors to think of CCL Products, Yes Bank, Greenlam Industries and JK Lakshmi Cement before making any investment decision
On account of bear run taking place at the Indian indices, market experts are advising investors to become selective in regard to their choice of investment. They are suggesting that thereare some stock they are still performing well at the blood run at Dalal Street becasue their fundamentals are strong. On the basis of such advises, we are forwrading top picks from our experts for the market investors. Here are the top choices that market experts are recommending today:
1] CCL Products
CCLP’s domestic business (Continental Coffee, a fully owned subsidiary) is showing good traction. Sales from the domestic business for 9MFY19 stood at Rs 550mn to total sales of Rs 400mn for 1HFY19. The branded business (CCLP’s own brands, Continental Coffee, Malgudi and THIS) contributed Rs 230mn, private labels (supplies to Big Bazaar, Spencer & Reliance) contributed Rs 70mn while the rest came in from the bulk business (railways & army). Management has guided sales of Rs 800mn for FY19 against Rs 460mn in FY18 from this subsidiary vs earlier target of Rs 1,000mn.
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कहां, कैसे और किसमें लगाएं पैसा? क्या है शेयर चुनने का सबसे सही तरीका..जानने के लिए देखिए #EquityKiBaat हर मंगलवार सुबह 10:30 बजे सिर्फ ज़ी बिज़नेस पर।@AnilSinghviZEE @Raamdeo @MotilalOswalLtd @MotilalOswalAMC pic.twitter.com/B1vEvLoSrO
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On suggestion to the invstors in regard to the counter Akhil Parekh, Analyst at the Elara Securities told in a detailed research report, "Despite weak quarterly results, fundamentals of the counter indicates an upside potential for near 55 per cent. We recommed market investors to buy for the target of Rs 421/stock levels." Curent;ly, the counter is hoveering around Rs 272/counter levels.
2] Yes Bank
In a big positive for Yes Bank (YES), the RBI has found ‘NIL’ divergence in the bank’s provisioning and asset classification during 2017-18. This is a big thumbs-up for YES at a time when there were concerns on its asset quality, especially after the term of its outgoing MD & CEO was not renewed by the central bank. YES had reported a FY16/FY17 divergence of Rs 41.7bn/Rs 63.5bn earlier, but was able to recover/upgrade about 77% of assets reported as divergence over FY15-FY17. Both key events for the bank are now behind, i.e. (a) appointment of an external candidate, Ravneet Gill (CEO, Deutsche Bank India), as the next MD & CEO, and (ii) a clean chit from the RBI in terms of divergence. Experts believe the focus will now shift to timing of raising capital and strategy of new management.
On suggestion to the investors in regard to the counter, Rohan Mandora and Shreepal Doshi, Analyst at the Equirus informed in a detail research report that fundamentals fo the coutner suggests an upside potential to double its growth by March 2020. They advised investors to take buy position in the stock for the target of Rs 340/counter levels by 31 March, 2020. Currently, the scrip is revolving around Rs 169/cvounter levels.
3] Greenlam Industries Ltd.
Greenlam reported 12% YoY sales growth where the major sales growth can be attributed to around 9% growth in realisations for the laminates segment and the engineered wood floors & doors growing 60% YoY combined. However, the management stated that the overall demand environment has been weak. Further, the lower range products have been facing competitive pressures due to over-capacities in the industry and the companies with brand recall benefitting due to their extensive distribution network across geographies and innovative products & designs. We expect GREENLAM to sail through this turbulance to gather sales on its strong brand and grow at a CAGR of 10% over FY18-20. During the quarter, the struggling gross margin on account of higher raw material cost due to higher crude and depreciating rupee improved on the back of pricing discipline maintained by the company.
On suggestion to the market investors in regard to the counter Pratik Poddar, Research Analyst at Narnolia financial Advisors told in a detail research report, "The fundamentals of the scrip indicates an upside potential for 7 per cent in short-term perspective. We recommend investors to take a buy position in the stock for the target of Rs 750/counter." Currently, the counter is oscillating around Rs 700 per stock levels.
4] JK Lakshmi Cement
JK Lakshmi Cement (JKLC IN) reported an EBITDA of Rs 0.98bn against experts and the Street’s estimates of Rs 1.1bn each. Earnings were lower than estimates, due to higher other expenses on one-off repair & maintenance expenses and consultancy charge paid by the company for reducing logistical cost. While consultancy charges are expected to continue for one more quarter, expenditure incurred on repair and maintenance is not likely to continue. Net sales was up 12% YoY to Rs 9.4bn on higher volume. EBITDA margin declined 80bp YoY to 10.5% on higher other expenses. Net profit was up 72% YoY at Rs 148mn.
On suggestion to the investors in regard to JK Lakshmi Cement counter Ravi Sodah, analyst at Elara Securities told, "The fundamentals of the counter suggests an upside potential for 60 per cent. We recommend investors to take buy position in the stock for Rs 490/stock levels." Currently, the counter is oscillating around Rs 307/share levels.
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