With keeping a time horizon of over two quarters, domestic brokerage and research firm HDFC Securities has shared its top three stock recommendations from the auto ancillaries, agri-products/pharmaceuticals and FMCG sectors – Steel Strips Wheels, Advanced Enzyme Technologies, Amruntanjan Healthcare.
HDFC Securities’ top stock picks –
Advanced Enzymes Technologies: Advanced Enzymes is a leading player in enzymes and probiotics that play a crucial role in health and nutrition.
“The enzyme industry is dominated by big MNCs like Novozymes, DSM Nutritional Products, BASF etc. However, at the same time smaller players like Advanced Enzyme are gaining ground in the segment helped by innovation and newer technologies. We feel investors can buy the stock in the band of ₹380-385 and add more on dips to ₹332.5 for base case target of ₹422.5 and bull case target of ₹458.5 over the next two quarters,” the brokerage note said.
Amruntanjan Healthcare: Amrutanjan Healthcare ltd (AHCL) is one of the oldest ayurvedic and OTC Indian brand.
The brokerage said that though AHCL is in branded personal are segment, it may not get the valuations that other FMCG players get due to its single brand and single segment concentration, though it has been working to diversify that and has succeeded to some extent so far. However it feels that there is a scope for some upward valuation re-rating in the stock currently.
“We feel investors can buy the stock in the band of Rs. 820-830 and further ad on dips at Rs. 732 for a base case fair value of ₹900 and bull case fair value of Rs. 970 for a time horizon of 2 quarters.”
Steel Strips Wheels: “The Board has approved split in the face value of the stock from ₹10 to ₹5 and the record date for this may be announced shortly. We believe investors can buy the stock in the band of ₹1710-1740 and add on dips to ₹1510-1530 band for a base case fair value of ₹1877 and bull case fair value of ₹2056 over the next 2 quarters,” HDFC Securities suggested.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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