Based on industry trends and individual performance of the companies, HDFC Securities has picked Jindal Drilling & Industries, RACL Geartech and Vardhman Special Steels for the 2-3 quarters.
The Indian stock market welcomed the new year with enthusiasm as the Sensex gained 327 points and the Nifty gained 92 points on Monday. The Sensex recaptured the 61,000 mark and closed at 61,167. At the same time, the Nifty closed at 18,197 with a slight difference of 18,200. These benchmark indices started the day on a slow note.
Given the geopolitical uncertainties, high inflation and possibility of recession this year, experts believe that stocks across the world may come under pressure in the first half of this year. Meanwhile, some also say that emerging market equities could benefit from benign global markets.
HDFC Securities has picked Jindal Drilling & Industries, RACL Geartech and Vardhman Special Steels as its fundamental picks for the next two-three quarters, given the key factors behind the positive outlook for the Indian economy and individual health of companies.
Jindal Drilling & Industries
Suggestion: Buy in ₹284-290 band and add more in ₹257-263 band on downsides. TP: ₹320| CMP: ₹296.15
According to HDFC Securities, the base case fair value of the stock is ₹320 and the bull case fair value is ₹360 over the next 2-3 quarters. Investors can buy the stock in the band of ₹284-290 and can invest more if the price dips towards ₹257-263 band
The leading oil and gas producer will benefit from rising global oil demand and rising natural gas and oil prices. Jindal Drilling & Industries Limited (JDIL) is producing natural gas and oil since last 30 years.
Based on the company's existing rig contracts and its performance in the previous quarters, the brokerage firm expects its revenue to grow at 33.6% CAGR. In addition, the company's EBITDA and PAT will grow at the rate of 50% and 67.7% over FY22-FY25E.
RACL Geartech Limited
Suggestion: Buy in ₹710-725 band and add on dips in ₹640-655 band. TP: ₹785| CMP: ₹722
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