HDFC Securities’ top picks: 3 stocks to buy over 2-3 quarters

Market


Bharti Airtel Ltd from the telecom space, NLC India Ltd from the power industry and Vesuvius India Ltd from the Refractories space are the three top stock picks that domestic brokerage and research firm HDFC Securities has suggested that investors can look to buy with the time horizon of two to three quarters.

HDFC Securities’ top stock picks

Bharti Airtel: Airtel is in a strong position to gain from the industry’s average revenue per user growth of 50% over the next four-five years, supported by an attractive market structure with two strong players and two weak players, along with favorable regulations, the brokerage note stated.

“We believe the base case fair value of the stock is 916 and the bull case fair value of the stock is 983 over the next two quarters. Investors can buy in 829-845 band and add further on dips in the 747-761 band.”

NLC India: “NLC is diversifying its portfolio geographically from lignite based plants in Tamil Nadu to multi-state based and multi fuel based with projects. Considering the capacity addition outlook, NLC is expected to exhibit considerable revenue growth from its existing level. We think the base case fair value of the stock is 87.5 and the bull case fair value is 93.4 over the next two-three quarters. Investors can buy the stock in the band of 77.5 – 78.5 and add more on dips to 68,” suggested HDFC Securities.

Vesuvius India Ltd: VIL’s strong track record unequivocally establishes its ability to largely transcend the cyclicality of its customer industry – steel, as per the brokerage which is impressed by the company’s strong track record in a technology driven sector that is getting increasingly concentrated, balanced product portfolio delivering superlative growth, technology support from global parent, and debt-free balance sheet with consistent free cash flow. 

“We think the base case fair value of the stock is 1,824 and the bull case fair value is 1,932. Investors can buy the in stock 1640-1670 band and add more on dips in 1424-1444.”

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


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