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Domestic brokerage and research firm HDFC Securities has shared three top stock picks with two for the time frame of two quarters and one with the time frame of one year. The stock recommendations differ from industries like commodity chemicals, auto ancillaries and healthcare facilities -GHCL, Pix Transmissions and Fortis Healthcare.
Here are HDFC Securities top picks:
GHCL: GHCL approved a proposal to demerge its textile business into a separate entity in March 2020, whereby GHCL’s shareholders will get shares in 1:1 ratio in the new textile entity, and both businesses will be listed as separate business entity.
The brokerage believes that the demerger of the textiles division could result in value unlocking and give each segment the valuations they deserve. The process of demerger could get over in the next few months. It believes once the record date for the demerger is announced, the stock price could begin to perform anticipating value unlocking. “Investors can buy the shares at the LTP and add on dips to ₹300-304 band.” (Time horizon: 1 year)
Pix Transmissions: HDFC Securities has initiated coverage on the stock as the company manufactures a wide range of belts catering to variety of industries some of which, the brokerage believes, have strong growth potential in the coming years.
“We believe investors can buy the stock in the band of ₹727-732 and add on dips to ₹645-650 band for a base case fair value of ₹812 and bull case fair value of ₹882.” (Time horizon: 2 quarters)
Fortis Healthcare: Hospital business is well positioned and has demonstrated healthy operational efficiency. Sustained focus on cost optimisation and brownfield expansion remains the key trigger, the note said.
“We believe the base case fair value of the stock is ₹307 and the bull case fair value of the stock is ₹330 over the next two quarters. Investors can buy the stock in the band of ₹283-284 and and add on dips to ₹256-257 band.”
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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