Bharat Electronics, ITD Cementation India among fundamental picks by HDFC Securities; do you own any?
Nifty are up nearly 2 per cent in September so far. While the sentiment seems to have slightly improved, the market has to deal with many headwinds in the short term. The risk of inflation is not gone, interest rates are high and central banks have been saying they can still raise rates.
Moreover, major global economies, including the US, China and Europe, are showing signs of pain. All this makes the short-term outlook of the market hazy. What to do, then? Don't chase every stock.
Be stock-specific and bet on only quality stocks with strong fundamentals. Brokerage firm HDFC Securities recommends the following three stocks to buy at this juncture for the next two to three quarters. These stocks look attractive at this juncture because of their sound fundamentals.
Take a look: HDFC Securities recommends buying this stock in the band of ₹230 - 238 and adding more on dips in the band of ₹203 - 207. The brokerage firm highlighted that ITD Cementation is one of the key beneficiaries of increasing government focus towards infrastructure development and upgradation of railways and metro projects. Its focus on margins and cash flow generation augurs well from a long-term perspective.
ITD Cementation Limited has strong financials and a healthy balance sheet as compared to its peer companies which gives also the company a competitive advantage in bidding for new big projects. "We expect revenue, EBITDA and PAT to grow at a CAGR of 26 per cent, 43 per cent and 65 per cent, respectively, over FY23–25E. With the strong quality of orders flowing into the order book providing a strong future outlook for revenues, we revise our earnings multiple enhancing it to 13.75 times for base case valuation and 15 times bull case multiple to the
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