Stocks to buy: CSB Bank, Subros among top fundamental stock picks by HDFC Securities

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Also Read: Swashthik Plascon Limited share price debuts with 40% premium at ₹120.10 on BSE SME The two fundamental stock picks by HDFC Securities Retail Research are Subros and CSB Bank. Subros is a leading thermal system manufacturer with the capability to manufacture compressors, condensers, hoses and tubes. For Subros, many new arrangements, technology improvement and technology upgrades have been in the pipeline.

There is a significant success in its new business acquisition from its customer, business line of up to 2026 is almost complete, all new RFQs are either received or they are in progress or negotiation. Based on that, it feels that it will have sustainable growth in future almost in double digit form, HDFC Securities said. (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 brokerage firm expects revenue and PAT of the company to grow at 10% and 48% CAGR FY23-FY26.

EBITDA is expected to grow at 23% CAGR driven by savings due to higher localisation and EBITDA margins are expected to expand ~240 bps. “We believe investors can buy the stock in the price band of ₹427-435 and add on dips to ₹377-385 band (17.5x Sep’25E EPS) for a base case fair value of ₹469 (21.5x Sep’25E EPS) and bull case fair value is ₹513 (23.5x Sep’25E EPS) in the next two quarters," said the brokerage. CSB Bank reported healthy growth numbers in Q2FY24 with deposits growing 21 YoY, out of which CASA deposits grew 4% YoY.

Gross advances rose by 27 YoY, out of which advances against Gold and Gold Jewelry rose by 32% YoY. Non-gold loans have started to grow healthily as well, HDFC Securities noted. The bank has a strong provision coverage