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

October 3, 2023

318 Views 0

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 2024 Elections: Investors Urged to Stay Patient Amid Stock Market Swings, Advises Jasani

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 Recommends Buying NOCIL with a Target Price of Rs 273

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 Prestige Estates

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.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.