Finance News : Long-term investors need to buy 2 stocks as recommended by Sharekhan

Buy Indigo Paints at a target price of Rs 3305

The brokerage sees a rally at the current market price of Rs 2,547 to Rs 3,305 in stocks. According to Sharekhan Indigo Paints Limited (IPL), an emerging player who has carved out a niche for himself in the highly competitive paints industry, launches various products, builds brand equity through a leading brand ‘Indigo’ and is the bottom line for expansion. Its distribution in the domestic market by following the up method. Its market share is 2% but it has strong potential to improve in the coming years.

“Indigo’s local advantage and a healthy mix of revenue from different products have resulted in a 48% increase in total margins among colleagues. With a distinct product portfolio and bottom-up approach, Indigo Paints is emerging as one of the fastest growing paint companies in India. A got 22% and 71% CAGR, ”Dalali said.

According to the firm, well-functioning capital management has kept the net working capital cycle 13-14 days shorter.

“We start coverage on a purchased Indigo Paints and set a target price of 30,305. Different business models, excellent return profiles and strong structural growth outlook will put FY2023 / 24E at a premium of 60x / 44x to its peers to earn, ”he said.

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Buy Sundarkhan Fastener, says Sherkhan

Sharekhan has set a target price of Rs 99 on the stock of Sundaram Fasteners as against the current market price of Rs 54.

According to Sharekhan, the company has demonstrated strong performance in Q1FY2022, beating road expectations, leading to strong performance despite the difficult environment. The main focus area remains for business risk from cyclical to handle export and non-automotive departments.

“We expect beautiful fasteners revenue to grow 32.3% between CAGR FY2021E-FY2023E, 26% revenue between FY2021E-FY2023E to be managed by CAGR and 20 bps improvement in EBITDA margin to 18.2% in FY2023E to 18.2% in FY2021, ROCE advance 22.6% on FY2023E, ”the brokerage said.

“We have maintained our purchase rating at Sundaram Fasteners Ltd. with a target price of Rs.

The brokerage added, “The company has long-term revenue visibility as it has strong relationships with key equipment manufacturers (OEMs) in India and globally.

Shares of Sundaram Fasteners last closed at Rs 754.90.

Disclaimer

Investing in equities poses a risk of economic losses. Investors should subsequently train due warning. Greynium Information Technologies, the creator, and the brokerage homes will not be chargeable for any losses prompted because of selections primarily based on the article. The above article is for informational functions solely and is picked from the brokerage report of Sharekhan. Be cautious whereas investing because the Sensex has now crossed 55,500 factors. Investors can make investments small quantities and keep away from placing lumpsum.

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