Stocks to buy: V-Guard, eClerx Services, Dhanuka Agritech, among five fundamental stock picks by HDFC Securities

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Read here: Stock market crash today: Why is India stock market down today? Explained with 5 reasons HDFC Securities has recommended five stocks to buy amid market volatility. The Retail Research at HDFC Securities believes these five stocks have the potential to deliver decent returns in a time horizon of 2-3 quarters based on their strong fundamentals.

V-Guard Industries, eClerx Services, NRB Bearings, Pitti Engineering and Dhanuka Agritech are the five stocks to buy or fundamental stock picks by HDFC Securities. V-Guard Industries with its strong brand equity and a well-diversified product portfolio is well poised to capitalize on the fast growing consumer electrical and durable sales in India, buoyed by rising income levels, rising consumer awareness, technologically innovative product launches and rising demand for premium products, HDFC Securities said.

While V-Guard’s gross margins in recent quarters have benefitted from the softening of raw material prices in recent quarters, additional interventions in the Consumer Durables segment and various other cost reduction initiatives are expected to drive sustainable EBITDA margins in the range of 9% - 9.5% in the long term, it added. Also Read: ITC, HDFC Bank, Suzlon, Vodafone Idea, Aster DM Healthcare among top stocks that mutual funds bought and sold in March According to HDFC Securities, the base case fair value of the stock is ₹379 and the bull case fair value is ₹405.

Investors can buy V-Guard Industries shares in ₹335-345 band and add more on dips in ₹300-310 band. eClerx Services’ performance over the past five quarters reflects rising demand for and stickiness of the company’s services.