Holi Picks: On the occasion of the festival of colours, market analysts – Simi Bhaumik, Sandeep Jain and Avinash Gorakshakar – suggested three stocks each. After two dull years due to Covid-19, this year, the festival is likely celebrated with fervour on March 18, 2022.  

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Different colours specify different meaning; hence, these analysts too recommend stocks to invest with diversification in portfolio. These stocks have a positional to long-term outlook and are picked on the back of strong fundamental value and attractive valuations. 

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Simi Bhaumik – Analyst 

Deepak Nitrite 

The analyst chooses Deepak Nitrate with an investment perspective of perspective of 4-6 months for a target price of Rs 2700-3000 per share and advice stop loss to maintain at Rs 2290 per share. 

Bajaj Finance 

The stock has witnessed steep correction lately amid crack in the Indian markets, Bhaumik explains. It has fallen from Rs 8,000 to Rs 7000 per share. And, a buying opportunity has cropped up from the current level for two targets Rs 7200 and Rs 7550 per share with a stop loss of Rs 6750 per share wih respect to positional basis. 

DLF 

The realty sector stock DLF has established lot of breakouts, the analyst states, adding further that the stock can catch a lot of momentum from current price if gets a support from the market. The scrips breakout has come above Rs 355 per share. She sets a target between Rs 390 395 per share on short-term basis and expects a stop loss should be placed below Rs 345 per share. 

Sandeep Jain – TradeSwift Director 

HDFC Ltd 

Foreign Institutional Investors have recently made a strong sell-off in this stock, and the stock has come to a very good level after a correction, the market analyst said. He added, HDFC being a very good finance company, it's time to unlock the value and it is trading at PE multiple of 19. 

According to Jain, if you look at the price to book value multiple, it is at 2.55 times, hence, amid inexpensive valuations, it’s a good bet with a target of Rs 2750 per share for 6-9 months. 

Orient Cement 

Affordable housing is one of the key focuses of the government, which could be beneficial for the stocks. The counter trading on a PE multiple of 10. The return on capital employed is 19-20. The dividend yield stands at 1.5 per cent and backed by billionaire investor Rakesh Jhunjhunwala, Jain added. He sets a target of Rs 180/190 per share on this stock with for 6-9 months view. 

Bhageria Industries 

On the back of correction, the stock has fell from Rs 329 to Rs 234-240 per share levels. It is trading at a cheap valuation and has PE Multiple of 14. The profit of the company for 5 years CAGR has been 33 percent. The return on capital employed is 18 per cent and dividend yield of 1.5 percent. The analyst sees a target of Rs 280 per share for 6-9 months. 

Avinash Gorakshakar - Profitmart Securities 

United Phosphorus Limited (UPL) 

UPL is an Indian multinational company with range of products with presence in Europe and Latin America. FY23 is expected to strong for the company, as it’s generating a lot of cash, and has also recently announced buyback. The analyst advice to Buy this stock for a target of Rs 900 apiece. 

Devyani International 

This quick restaurant service (QSR) company runs franchises of Pizza Hut, KFC, Costa Coffee and has around 890 franchises cumulative. The company dominates the domestic QSR segment, and has witnessed very good third quarter of FY22. 

The EBITDA (earnings before interest, taxes, depreciation, and amortization) margins have been 22-23 per cent in Q3FY22, and this segment will grow 35-40 percent. The company will have direct benefit of unlock theme and expects the stock to grow to Rs 225 per share in a year. 

Time Technoplast 

One of the biggest companies of polymer products in India, the company’s triggers come from its value-added products. Recently, they have launched a product of Composite Cylinder and CNG Cascade. These products will drive the growth momentum for the company in the coming 2 years.  

Time Technoplast is also the first company in India to manufacture the new CNG Cascade. The stock of this company is trading on a PE multiple of 8 and has cheap valuations. The analyst sets a target of Rs 90-95 per share for 6-12 months.