Stocks to buy: Narayana Hrudayalaya, Zen Technologies, among top fundamental stock picks by HDFC Securities
BSE Sensex hit an all-time high of 73,994.7 on March 2, while the NSE Nifty 50 scaled its record high of 22,440.90 today. The Nifty Midcap 100 index gained 0.2%, while the Nifty Smallcap 100 was down over half a percent. The gains in equity markets came on the back of a strong rally in US and Asian markets along with better-than-expected Q3FY24 GDP data which came at 8.4% YoY.
The strong growth number lifted sentiment and triggered a short covering rally on Dalal Street last Friday. However, concerns regarding the excessive valuations in the midcap and smallcap space still prevail, analysts said. Also Read: TVS, Eicher, Bajaj Auto, Tata Motors preferred picks of Jefferies as auto companies see divergent February sales trend HDFC Securites’ Institutional Research has selected a few stocks as its fundamental picks, which are believed to give decent returns in the time frame of the next two to three quarters.
These stock picks include Narayana Hrudayalaya, Zen Technologies, JTL Industries, and Ujjivan Financial Services. A higher maturity mix in hospitals, steady performance of flagship hospitals in India and improving profitability of new hospitals solidifies Narayana Hrudayalaya’s position in India. Prioritizing debottlenecking and brownfield expansion at its existing centres and expansion in Cayman support growth going forward, said the brokerage firm.
The brokerage expects Narayana Hrudayalaya’s revenue, EBITDA and PAT to grow at CAGR of 14%, 15.2% and 14.3% over FY23-26E. It recommends buy on the stock in the band of ₹1,342 - 1,358 and add more on dips to ₹1,211 for a base case fair value of ₹1,467 and bull case fair value of ₹1,557 over the next two to three quarters. Zen Technologies expects to win a majority of the
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