3 High Conviction Stock Picks From India Strategy Report Of PL
Shares To Buy
Prabhudas Lilladher has come-out its latest India Strategy & Q3FY23 Review. Here are 3 stock conviction ideas from the report.
Buy the stock of ABB, says Prabhudas Lilladher
ABB India remains a structural play in the long run given its diversified business model focusing on high growth segments like Data centres, energy efficiency products and automation and digitization, says Prabhudas Lilladher. The brokerage also notes that healthy exports outlook given increased global sourcing from parent and organic/ inorganic growth opportunities of Approx 28bn and strong inquiry pipeline. “Considering robust enquiry pipeline, penetration in Tier 3 & 4 markets driving volume growth across businesses and focus on operational efficiencies, we expect ABB to report revenue and PAT CAGR of 17.5% and 17.6% between CY22-CY24. We have ‘Accumulate’ rating on stock with target price of Rs 3371 valuing it at PE of 67x CY24E,” the brokerage has said.
Buy the Havells India stock, says Prabhudas Lilladher
Havells India is India’s leading diversified FMEG players with 21 products verticals covering 70% of household electric sockets. “We are optimistic on the company’s growth prospects given 1) strong demand in Cables with expectations of 14% sales CAGR, with 250bps improvement in EBIT margin over FY23-25E, 2) ECD expected 12.7% sales CAGR with 200bps improvement in EBIT margin over FY23-25E, and 3) shift in focus towards margin improvement in Lloyd as most of market share gains and benefits from in-house production flow in. We have a BUY on Havells (HAVL) with DCF based target of Rs 1447 (implied 47x FY24 earning),” PL has said in the India Strategy Report.
Titan: Buy the stock with a price target of Rs 2905
Titan is well placed to capitalize on long term growth opportunities led by jewellery share gains due to network expansion, regional thrust and hallmarking benefits. “The omni-channel strategy across jewellery, watches and eyewear new growth drivers like Caratlane, Titan Eye+, Taneira and entry into high growth segments like wearables such as smart watches, over the head headphones and Truly Wireless earphones. We believe Eyewear and CaratLane are have reached critical mass with 9MFY23 EBIT in Eyewear/Caratlane at Rs960mn/Rs1140mn. We expect 24.9% EPS CAGR over FY22-25. We have a BUY rating with DCF based stock price target of Rs 2905,” the brokerage has said.
Disclaimer
The stocks have been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies and the Author, and the respective Brokerages house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.