PNC Infratech, Indian Hotels, Star Health and Allied Insurance among 5 other stocks may give bumper returns
Stocks to buy: Broader market stocks such as PNC Infratech, Indian Hotels Company, Start Health and Allied Insurance, Bharat Electronics Limited and Cochin Shipyard may give up to 39 per cent returns on a long-term basis, according to various brokerage houses.
These stocks are recommended by the brokerages on the back of a positive fundamental and technical outlook.
Do you have any of these stocks in your portfolio?
Check out the full list of what brokerages recommend, including PNC Infratech, Indian Hotels, Star Health and among other stocks:
Star Health and Allied Insurance shares
Buy Star Health and Allied Insurance shares | Target: Rs 795| Upside: 39%| View: Long-term
“We like Star Health and Allied Insurance for its strong moats – the ability to maintain the competitive advantages – including a dominant agency-led distribution network, retail business mix, and best-in-class operational expenses ratios, HDFC Securities said in its report on the private insurer.
The brokerage expects the insurance company to deliver revenue/Adjusted profit compound annual growth rates (CAGRs) of 21/26 per cent, respectively and returns on equity (RoEs) in the range of 14.7-16.8 per cent over FY23-FY25E.
On Monday, Star Health shares jumped more than 1.5 per cent to Rs 527 per share on the BSE.
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Bharat Electronics Limited (BEL) shares
Buy Bharat Electronics Limited (BEL) shares | Target: Rs 376| Upside: 35%| View: Long-term
ICICI Securities is upbeat on Bharat Electronics Limited (BEL) as the defence sector looks well placed in terms of increasing domestic procurements by the government for our armed forces. The risk of supply chain issues is also receding in this sector with imports coming down, the brokerage said.
In line with its vision for self-reliance, the Defence Ministry on March 29, 2023, signed two contracts worth Rs 4,300 crore with BEL. The defence company shares ended nearly a per cent lower on Monday to Rs 96.66 per share on the BSE.
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Cochin Shipyard shares
Buy Cochin Shipyard shares | Target: Rs 620 | Upside: 29%| View: Long-term
The increase in domestic procurement will directly benefit domestic players including defence PSUs and private players in terms of more order inflows during the year for major platforms & sub-systems/components, ICICI Securities said in its report on the defence sector.
Cochin Shipyard earlier last week has also won an order from the Defence Ministry worth Rs 9,805 crore. The company is one of the largest shipbuilding and maintenance facility in India. The stock on Monday closed over a per cent higher to Rs 481.75 per share on the BSE.
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PNC Infratech shares
Buy PNC Infratech shares | Target: Rs 352| Upside: 24%| View: Long-term
According to HDFC Securities, PNC Infratech is targeting opportunities in drinking water supply aligning with the government’s focus on Jal Jeevan Mission.
The company has reiterated its target of increase in top line by 10-12 per cent year-on-year while maintaining its current margin level of 13-13.5 per cent on the back of its prudent bidding discipline.
On Monday, shares of infrastructure company were down nearly 1.5 per cent to Rs 284.5 per share on the BSE.
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Indian Hotels Company shares
Buy Indian Hotels Company shares | Target: Rs 376| Upside: 17%| View: Long-term
With 182 hotels and 21,094 rooms, the Indian Hotel Company Ltd. (IHCL) is a perfect play in the hospitality sector as its portfolio straddles across some of the best properties, locations and multiple income groups, according to HDFC Securities.
The brokerage said that the occupancy visibility for the next eight weeks is higher, and the upcoming G20, Men’s IPL (Indian Premier League) and World Cup 2023, and the wedding season will further support the growth of the hospitality industry.
On Monday, the Tata group company’s shares slipped by a per cent to Rs 321 per share on the BSE.
Image Source: Pixabay