Stocks to Buy: Amidst the ongoing turmoil in the stock market, brokerage firms have placed bets on shares of 7 companies on Wednesday, November 19. Brokerage says that investors can get returns ranging from 15% to 57% in these shares. These include shares of 360 ONE WAM, Arvind Limited, Hero MotoCorp, Deepak Fertilizers, LG Electronics India, Lodha Developers and Tata Capital. The brokerage has given a ‘Buy’ rating to all these stocks and explained why these stocks can make a place in the portfolio.
Global brokerage firm Citi (Citi) has bet big on wealth and asset management company, 360 ONE WAM. The brokerage said that the next three months i.e. 90 days look quite positive for 360 ONE WAM shares. The brokerage has put this stock in its 90-day ‘Positive Catalyst Watch’ and set a target price of Rs 1,615 for it. This shows a potential upside of about 50% in its shares from current levels. Citi has said in its report that the rapid recovery in net flow is the biggest positive sign for the company.
2. Arvind Ltd
Brokerage firm IIFL Finance has started covering shares of Arvind Limited with a ‘Buy’ rating and a target price of Rs 451 per share. This shows a potential rise of about 30 percent in its shares from Tuesday’s closing price.
IIFL Finance says Arvind Ltd is no longer just a fabric-focused company, but is rapidly expanding into the textile value-added segment and advanced materials (AMD). The company’s vertically integrated model and focus on value-added products can strengthen margins and growth in the coming years.
3. Hero MotoCorp
Global brokerage firm JP Morgan has increased the rating and target price of Hero MotoCorp shares. JPMorgan has upgraded Hero MotoCorp’s rating to Overweight and also increased the target price to ₹6,850. The brokerage said that after several years of decline in the company’s market share, there are now signs of stability. Also, new launches and better inventory management are also positive signs for this stock.
The brokerage firm also says that the recent cut in GST rates has revived demand in the lower segment of the two-wheeler market. This is a segment in which Hero MotoCorp is very strong. Apart from this, the positive for Hero MotoCorp is that its position in the electric two-wheeler market is improving, about which concerns were being raised earlier.
4. Deepak Fertilizers
Brokerage firm Emkay Global has started covering the shares of Deepak Fertilizers with ‘Buy’ rating and has given a target of Rs 2,000. It is estimated that its shares will rise by about 41.5% from Tuesday’s closing price. The brokerage says that the company is a leader in mining and industrial chemicals. The company has a strong hold in water-soluble fertilizers. Its product portfolio matches perfectly with India’s growth story.
Also, value unlocking is expected from the demerger process taking place in the next 1–2 years. The brokerage believes that the strong market share and diversified product line will enable the company to deliver strong returns in the long term.
5. LG Electronics India
Global brokerage firm Morgan Stanley has given ‘Overweight’ rating to the shares of LG Electronics India and has kept its target price at Rs 1,864. This is a forecast of 15% potential rise in its shares from the current level.
The brokerage firm says that LG Electronics’ margin profile is the strongest in the industry. The capital efficiency of the company is excellent. New manufacturing plants, increasing exports and growth in the B2B segment will strengthen the company’s revenue and profits in the coming years.
6. Lodha Developers
Brokerage firm Molilal Oswal has given ‘Buy’ rating to the shares of Lodha Developers and has predicted a rise of up to 57% in its shares from the current level. Motilal Oswal says Lodha Developers has shown sustainable performance on key operating levels and is now well positioned to capitalize on the strong growth and consolidation opportunities in the sector. The brokerage firm expects Lodha Developers’ business operating levels to remain strong going forward. The brokerage has set a target price of Rs 1,888 for this share.
7. Tata Capital
Global brokerage firm JP Morgan has released a report regarding Tata Capital Limited, the new listed company of Tata Group. The brokerage has rated Tata Capital’s shares ‘overweight’ and has set a target price of Rs 370 for it. This indicates a jump of about 15% in this stock from Tuesday’s closing price.
JP Morgan believes that Tata Capital will drive rapid growth in financial systems based on its strong liability profile, diversified product portfolio and strong omni-channel distribution network. The report says that the company is well positioned to increase its market share in the coming years.
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