HDFC Securities’ TOP CHOICES FOR STOCK MARKET
NEED TO KNOW WHY???????
HDFC Securities Limited is a financial services intermediary and a subsidiary of HDFC Bank, a private sector bank in India. HDFC securities was founded in the year 2000 and is headquartered in Mumbai with branches across major cities and towns in India
Zensar Technologies The IT company’s financial profile remains healthy, supported by improved profitability, strong capital structure and robust liquidity position in the form of strong cash and liquid investment of US$ 166.3 million as on March 31, 2021 (16 percent of marketcap). The company has repaid all its bank debts in FY21Zensar is amongst the cheaper mid-tier IT Services stock; due to a reason of long term streak of growth underperformance. We think that a gradual turnaround in fortunes may be round the corner, said the brokerage.It believes the base case fair value of the stock is Rs 367 and the bull case fair value of the stock is Rs 397 over the next two quarters. Investors can buy at LTP and add further on dips in the Rs 304-308 band.
Punjab National Bank
Most of the concerns arising out of pending writeoffs out of restructured/SMA accounts are already in the price. We have assumed higher recoveries and lower slippages than the street going forward. NIMs may also start to rise going forward due to lower interest reversals, HDFC Securities said.We remain cautious on the asset quality front due to the high corporate book. Even the retail and MSME segments have also seen large slippages during the quarter, it added.We believe that investors can buy PNB at LTP and add more at Rs 36.5 for the base case fair value of Rs 54.8 and for the bull case fair value of Rs 65.8 over the next two quarters.PNB is a high-risk high-reward stock. We have assigned a “high risk” rating, it added.
Sharda Cropchem
HDFC Securities believes that the company’s strong pipeline of registrations would drive volume and sales growth. The company’s asset-light model, cash-rich balance sheet (cash & equivalents of Rs 340 cr as on Mar-2021) and focus on registrations in stricter geographies augur well for tapping incremental volume growth.At the current market price (CMP), the stock trades at 12.3x FY23E EPS. We recommend investors to buy the stock at an LTP of Rs 359 and add more on declines to Rs 322 for a base case target of Rs 395 and a bull case target of Rs 424.5 over the next two quarters.
Jyothy Labs Despite lacklustre performance of the past three years, the company would achieve double-digit revenue growth in the medium term, we believe, given its various relevant strategic initiatives in recent times, the brokerage firm said.It believes Jyothy Labs would gradually be rerated in line with other mid-sized FMCG players as the street becomes comfortable with its topline and bottomline growth robustness.It recommends investors to buy the stock at the CMP and add on declines to Rs 150-154 band for base case target of Rs 185 and bull case target of Rs 197 in the next two quarters.
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