Need PSU stock ideas? Motilal Oswal’s Chandan Taparia has 4 picks for you
PSU stocks to buy: Want to add quality public sector stocks to your portfolio but don’t know where to begin? Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Financial Services, has handpicked three PSU stocks that he believes can deliver significant upside over different timeframes.
PSU stocks to buy: Want to add quality public sector stocks to your portfolio but don’t know where to begin? Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Financial Services, has handpicked three PSU stocks that he believes can deliver significant upside over different timeframes.
Here’s all you need to know about the three stocks that market expert Taparia is positive on:
Shipping stocks
Stocks of ship-building businesses are faring better as Dalal Street undergoes correction at higher levels, he told Zee Business. Taparia likes Cochin Shipyard (Cochinship) and Shipping Corporation of India (SCI) from this space. He sees the stocks rising up to 20 per cent from the current levels. Taparia has a ‘buy’ call on Cochin Shipbuilders from a long-term perspective, with a target price of Rs 850 apiece and a stop loss at Rs 670.
Cochin Shipyard shares zoomed by Rs 119.8 — or 17.4 per cent — to end at Rs 807.7 on BSE on Wednesday after touching a record high of Rs 822 apiece in intraday trade. Taparia’s target price implies a further upside of 5.2 per cent in Cochin Shipyard shares from Wednesday’s closing price. The Cochin Shipyard stock rose by Rs 3.6 — or 3.4 per cent — to settle at Rs 108.1 apiece.
Mazagon Dock Shipbuilders
Taparia suggests Mazagon Dock Shipbuilders (Mazdock) as a positional pick around Rs 1,925-1,930 levels, with a target price of Rs 2,100 and a stop loss at Rs 1,825. The target implies an upside of 8.5 per cent from the current price. Mazagon Dock Shipbuilders shares grew by Rs 72.7 — or 3.9 per cent — to finish at Rs 1,935.5 apiece. He said that a lot of action is visible in the sector and the stock appears to be strong from a technical perspective.
Hudco
Taparia has Housing & Urban Development Corporation (Hudco) as a short-term pick. Trading at the highest levels seen in 4-5 years, the stock is staging positive action, he said.
“Momentum can be seen once again due to consolidation after high volumes,” said Taparia, who recommends buying Hudco shares at Rs 69.3-odd levels for a target price of Rs 75-77 with a stop loss at Rs 66.
Hudco shares inched higher to end at Rs 68.2 apiece on Wednesday. Taparia’s target price envisages a 13 per cent return in the stock from the current level.
Meanwhile, domestic equity benchmarks Nifty and Sensex finished a volatile session with mild gains on August 16, extending gains to a second straight day as trading resumed on Dalal Street after a mid-week holiday on account of Independence Day. The headline Nifty index rebounded 147.8 points from the weakest level of the day to settle at the 19,465 mark, 526.9 points — or 2.6 per cent — below an all-time high touched on July 20, 2023. The Nifty PSU gauge — whose 20 constituents include Container Corporation, BHEL, LIC, HPCL, Coal India, PFC, HAL ONGC, Indian Oil and PowerGrid — rose half a per cent for the day.
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04:36 PM IST