Top shares to buy now: Here are the best five stocks that investors can think of, say experts
Indian market experts are speculating a bull run in the five stocks namely Indian Hotels Company, Orient Cement, KNR Construction Limited, IPCA Laboratories and Lumax Autotech
Amid foreign investors fishing out their money from the Indian markets and the Indian indices bleeding for fourth straight trading sessions and Nifty closing below 10,800 levels on Wednesday, market investors are eagerly waiting for Thursday opening as market experts are speculating a bear trend if the Nifty sustain below 10,800 levels. Keeping these things in mind, here are the top five stocks that market experts are suggesting investorsto think of before making any investment decision today:
1] Indian Hotels Company
The Indian Hotels Company Ltd (IHCL) reported 10.5% YoY consolidated revenue growth in Q3FY19 with a 192bps improvement in EBITDA margin, on track to scaling up to the management guidance of 800bps improvement by FY21–22. Also, the company posted net profit of Rs1.36bn in 9MFY19, reporting a profit for the first time in 9M in the last eight fiscal years. The YTD new signings rose to 20 properties, with a total key count of 2,750.
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On suggestion in regard to IHCL counter Rajiv Bharati, Senior Research Analyst - Hotels, IndiaNivesh told, "Fundamentals of the scrip suggests an upside swing of 49 per cent. An investor can buy the stock for the target of Rs 210 per shares." Currently, the counter is oscillating around Rs 140 per stock.
2] Orient Cement
Orient Cement reported an EBITDA of INR 379mn, in line with our and the Street’s estimates of Rs 374mn and Rs 391mn, respectively. Net sales increased by 11.6% YoY to Rs 5.7bn on the back of higher volume. EBITDA margin contracted 110bp YoY to 6.6%, due to an increase in cost and lower prices. It reported a net loss of Rs 137mn against Rs 177mn in the past year. Net realization was up by 1.2% YoY and down 0.9% QoQ to INR 3,782 per tonne. The YoY increase in realization was primarily on account of higher free-on-road (FOR) mix.
On suggestion to the market investors in regard to Orient Cement counter Ravi Sodah, Analyst at Elara Securities told, "Fundamentals of the scrip indicates an upside momentum for near 16 per cent. A trader should acumulate the scrip for target price of around Rs 80 per stock." the scrip is oscillating around Rs 69 per stock.
3] KNR Construction Limited
KNRCON has strike the deal with Cube highway to sell its 4 under development HAM projects. With this deal company’s equity requirement has come down from Rs.388 Cr to Rs.194 Cr. The deal is not only help to keep balance sheet light but also allow company to focus more on EPC business. During the quarter company has received appointment date of 1 HAM project and expected to receive for 3 more projects in Q4FY19. Company has signed concession agreement for Karnataka HAM project in January and which will due for appointment date in July 2019. Though the revenue is expected to remain flat in FY19E on account of delay in appointment date but we expect strong bounced back in FY20.
On suggestion to market investors in regard to the counter Sandip Jabuani, Research Analyst at Narnolia Financial Advisors told, "Fundamentals of the counter suggests an upside potential for 21 per cent. An investor can tajke a buy position in the scrip for the target of Rs 243/stock levels." The scrip is currently oscillating around Rs 200/stock levels.
4] IPCA Laboratories
IPCA’s Q3 beat our estimates across all fronts, led by a strong pick-up in export generics and sustained growth in India formulations. While management highlighted challenges in the WHO Global Fund tender business (not received any order as yet), sluggishness in the UK business (distributor-led issue), and forex fluctuations in Russia, we believe strong API capabilities are core to IPCA’s diversified exports business model, which, in our view, is a major competitive advantage, given growing cost pressures in global generics. Besides, lowering dependency on the anti-malarial segment in India formulations has aided in the betterment of gross margins.
On suggestion to the market investors in regard to the pharma scrip Sapna Jhawar, Senior Research Analysts - Pharmaceuticals at IndiaNivesh Securities told, "On the basis of strong fundamentals, the scrip is indicating an upside potential of 19 per cent. We recommend traders to buy this counter for the target of Rs 890/stock levels." The counter is currently oscillating around Rs 750 per stock levels.
5] Lumax Autotech
Lumax Auotech (LATL) continued its double digit growth trajectory (Revenue/PAT grew 15/33%) in 3Q despite a slowdown in the OEM segment. LATL’s growth is driven by the aftermarket segment as well as higher other income (relating to designing and mould modification charges). LATL earnings growth is premised on 1) Sustained revenue growth from existing products line such as lighting, SMT and sheet metal business 2) incremental revenue from new products including Urea tank and oxygen sensors ( around Rs 1bn in next 2-3 years) 3) Revenue and margin expansion in the aftermarket business (the company is launching several new products across its existing product range (Management expect healthy mid teens growth over the next 3-5 years).
On suggestion to the market investors in regard to the auto scrip Abhishek Jain, Analyst at HDFC Securities told, "The fundamentals of the counter is indicating an upside potential of nera 49 per cent. An investor can take buy position in the scrip for the target of Rs 208/stock levels." Currently, the counter is oscillating around Rs 139/stock levels.
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