Stocks to buy: Birla Corp, Saregama India, Savita Oil among 5 fundamental stock picks by HDFC Securities

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Birla Corporation, Marksans Pharmaceuticals, Saregama India, Savita Oil Technologies and Jash Engineering. The brokerage firm advises buying these stocks at current market prices and add on dips, keeping a time horizon of 2-3 quarters.

Here are 5 fundamental stock picks by HDFC Securities: Healthy pricing in north and central regions, increased capacity utilization at Mukutban plant and unitary EBITDA per tonne rebounding to a 10-quarter high augurs well for Birla Corporation, HDFC Securities said. It believes along with the higher sales volume, combined with the lowest cost of production, will have a positive effect on the bottomline growth and profitability.

Also, once the additional capacity is commissioned then the company will replace current supplies from Satna and Maihar in existing markets where the Company already has a strong presence; this will lead to lower logistics cost. “We believe investors can buy the stock in the range of ₹1,725 - 1,760 band and add on dips to ₹1,556 - 1,588 band, for base case fair value of ₹1,891 and bull case fair value of ₹1,996," the brokerage said.

Also Read: Stocks to buy: Navin Fluorine, Neogen, Galaxy Surfactants among top picks in chemical sector by HDFC Securities Marksans Pharmaceuticals is concentrating on regulated markets of US and UK with focus on higher margin softgels and OTC products. The brokerage estimates 16% CAGR in revenue led by strong growth from the UK and US market over FY23-26E.

Strong revenue along with steady margin would drive 20.3% CAGR in net profit over the same period. HDFC Securities feels investors can buy the stock in the band of ₹158 - 161 and add more on declines to ₹141 for base case target of ₹175 and bull case target of ₹187.25 over the next