DMart, Cera, and La Opala are some recommended retail stock options with potential gains of up to 33%

 DMart, Cera, and La Opala are some recommended retail stock options with potential gains of up to 33%

The retail industry's demand patterns remained mild. Analysts claim that up until the fourth quarter, businesses serving the mid-premium and premium segments outperformed their rivals. 

Centrum Broking anticipates a slower-moving continuation of the same trend. Trent is anticipated to continue to be an anomaly in the garment industry, posting strong sales growth of 41%. 

Metro will outperform Relaxo Footwears, Campus, and Bata India in the footwear industry. The grocery market is anticipated to rebound, lead by Avenue Supermarts (DMart), while the luggage market will keep expanding quickly, supported by a positive travel trend, with Safari Industries and VIP reporting +18 and +7% sales growth, respectively. 

"From our construction materials universe, we anticipate that Supreme Industries and Astral, two PVC pipe makers, will report good pipes volume growth (+22/18%). Players in the PVC pipe market should expect their EBITDA margins to increase sequentially, driven by stable RM prices. According to a report from Centrum Broking, Cera Sanitaryware is anticipated to have growth of 10% with a consistent profit profile.

Avenue Supermarts, Safari Industries, Cera Sanitaryware, and La Opala RG are Centrum Broking's top picks.

TP: 5,055 Avenue Supermarts | Buy

The brokerage company has a "Buy" recommendation on Avenue Supermarts, the DMart retail chain operator led by Radhakishan Damani, and set a target price of $5,055 per share, representing a potential gain of 33% from Monday's closing price.

In the three months ending in September 2023, Avenue Supermarts is anticipated to record a year over year (YoY) sales rise of 18.5% at $12,307.7. In Q2FY24, the company's net profit is anticipated to decline 7.5% YoY to 675.9 crore.

TP: $3,995 Safari Industries | Buy

In the second quarter of FY24, luggage and travel bag producer Safari Industries is anticipated to generate a net profit of 36.9 crore, representing a gain of 42.9% YoY. According to projections from Centrum Broking, the company's revenue could increase 18% YoY to 371.6 crore.

The brokerage company has a 'Buy' call on the stock with a 3,995 per share target price.

Buy Cera Sanitaryware with TP for $9,807

In the July-September quarter of FY24, Cera Sanitaryware's sales is predicted to increase 10% YoY to 457.5 crore, while its net profit is predicted to increase 15% YoY to 58.8 crore.

According to channel feedback, the sanitaryware segment is better positioned than the tiles and wood panel segments, the brokerage added.

The company has a 'Buy' rating and a target price of $9,807 per share, which suggests a gain of almost 20% from Monday's closing price.

Buy La Opala RG for 530

In the glassware industry, La Opala RG is a top manufacturer and marketer of lifestyle goods. However, Centrum Broking anticipates La Opala to report a 16.5% reduction in Q2FY24 net profit to 32.6 crore and a 20% YoY decline in sales to 107.9 crore.

The company has a 'Buy' recommendation from the brokerage firm, and they have set a target price of 530 per share, which is a 22% increase from Monday's closing price.