Stocks to buy: Manappuram Finance, Bharat Dynamics, IOL Chemicals among fundamental stock picks by HDFC Securities

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global market cues. Broader markets supported the rally with the Nifty Midcap 100 index hitting record high level. The Nifty 50 index is now trading at ~20.3x FY24 and ~17.6x FY25 consensus EPS.

According to HDFC Securities, valuations look fair now on FY25 basis and risk reward is balanced. Read here: Nifty crosses 20,000 for the first time since September; 5 key factors driving the rally Among sectors, the brokerage prefers large-cap banks, industrial and real estate, power, autos, pharma, OMCs, gas, and capital markets. It remains underweight on consumer (staples and discretionary), metals, chemicals and small banks.

However, for a 6 to 9 months perspective, the Retail Research at HDFC Securities have pointed out three fundamental stock picks. HDFC Securities is bullish on Manappuram Finance, Bharat Dynamics and IOL Chemicals & Pharmaceuticals and advises investors to buy these stocks and add at lower levels for an upside of up to 10% in two to three quarters. Here are top fundamental stock picks by HDFC Securities: Despite the slowdown and high inflation, demand for gold loans is picking up steadily and the industry is poised to grow over the long run.

HDFC Securities believes there is enough unsatisfied demand for gold loans in India which will ensure that all players can co-exist without major erosion of profitability. “We expect the consolidated loan book of the company to grow at a CAGR of ~16% over FY23-FY26. Adj.