Top Fundamental Stock Picks by HDFC Securities: IDFC, GNA Axles, Zen Technologies, and More

October 3, 2023

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HDFC Securities Retail Research has unveiled its list of top fundamental stock picks with a time horizon of two to three quarters. Despite concerns over higher interest rates, foreign capital outflows, and a global economic slowdown, the Indian stock market indices, including the Nifty 50 and Sensex, posted minor gains in September.

Stock Picks:

1. IDFC Ltd: HDFC Securities anticipates a 23% CAGR increase in the bank’s advances over FY23-FY25E. Improved profitability is expected to drive RoA to 1.4% by FY25E. In its base case, the brokerage has a target price of ₹145, and ₹158 in the bull case.

2. Narayana Hrudayalaya: The hospital chain’s higher maturity mix and improving profitability solidify its position. The brokerage suggests buying the stock in the ₹1,080-1,105 band, with a target price of ₹1,195 in the base case and ₹1,265 in the bull case.

Also Read HDFC Securities Recommends Buying ACC with a Target Price of Rs 2440

3. LG Balakrishnan & Bros: With better demand prospects in domestic and export markets, the company remains bullish. Investors are advised to buy on dips in the ₹1,040-1,060 band, with a base case fair value of ₹1,150 and a bull case fair value of ₹1,225.

4. GNA Axles: The company could benefit from recovery in export markets and new SUV capacity. Investors can consider buying the stock in the ₹458-470 band, with a base case fair value of ₹508 and a bull case fair value of ₹546.

Also Read HDFC Securities Launches Discount Broking All-in-One App 'HDFC SKY'

5. Zen Technologies: The stock can be bought in the ₹710-730 band, with a base target of ₹795 and a bull case target of ₹854. Improved estimates for FY24E and FY25E have led to an upward revision in the target price.

6. Som Distilleries and Breweries: The company’s strong operating performance and expansion plans make it an exciting prospect. Investors can buy the stock in the ₹320-328 band, with a base case fair value of ₹357 and a bull case fair value of ₹385.

Also Read HDFC Securities Recommends Buying Aarti Industries with a Target Price of Rs 639

7. La Opala RG: La Opala, a leader in opalware, offers a sustainable consumption story in India. Investors can consider buying the stock in the ₹422-430 band, with a target price of ₹468 in the base case and ₹499 in the bull case.

These stock picks are based on strong fundamentals and growth prospects, making them attractive options for investors with a medium-term horizon.

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