Stocks to buy: Advanced Enzyme, Swaraj Engines among fundamental stock picks by HDFC Securities
Read here: Nifty 50 valuations are rich, offer 8-10% upside in 2024, says HDFC Securities; lists out stocks to accumulate next year Margin benefits for commodity consuming sectors due to deflation in commodity prices are largely done, so any growth hereon must be volume led, it said. The Retail Research at HDFC Securities has included Advanced Enzyme Technologies and Swaraj Engines in their fundamental picks and expects the stocks to give decent returns in two-to-three quarters. HDFC Securities forecasts revenue, EBITDA and PAT CAGR of 13.5%, 21% and 22% over FY23-25E for Advanced Enzyme Technologies which would be led by strong growth across all segments.
The brokerage expects margin to remain in the 31-34% range over FY23-25E. 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, as per the brokerage.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) “The stock has traded at 26-28x 12-months forward average P/E in the last 5 years. We feel investors can buy the stock in the band of ₹369-373 and add more on dips to ₹330.5 (23.5x FY25E EPS) for base case target of ₹407.5 (29x FY25E EPS) and bull case target of ₹436 (31x FY25E EPS) over the next 2-3 quarters," it said. The decline in tractor sales seems to have come to an end.
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