Fundamental picks: NHPC, PowerGrid among HDFC Securities’ top bets | Mint – Great

Auto and IT stocks were the top gainers of the day. Axis Bank, Dr. Reddy’s laboratories , and Hindalco Industries were amongst the worst performers during. Whereas, Tata Motors , Maruti Suzuki, Bajaj Car , plus HCL Technologies earned the most on Nifty .

The market investors remained optimistic about the share market growth on the occasion of the Lunar New Year, and normalcy in China after the particular relaxation associated with COVID curbs.

Keeping in view the global scenario, market volatility, macroeconomic indicators, and performance of companies, HDFC Securities has picked 4 names as fundamental bets – Action Construction Equipment, NHPC, and Power Grid Corporation of India and Symphony – for the upcoming 2-3 quarters.

Action Construction Equipment

Recommendation: Buy in the band of Rs. 332‐338 & add more on dips to Rs. 298‐301. 5 band | Target Price: Rs. 375 | CMP: 333. 40

“We think the base case fair value of the particular stock is Rs. 375 and the bull situation fair value is Rs. 403. 4   over the next three quarters. Investors can buy the stock in the particular band associated with Rs. 332‐338 and include more on dips to Rs. 298‐301. 5 band, ” says the brokerage house.

Actions Construction Gear Ltd will be a key player in the field of manufacturing and marketing of cranes, construction equipment material handling, etc . It enjoys more than 65% associated with the market share in India’s mobile plus tower crane manufacturing business. The company has recently finalised the deal in the Defence sector and received an order from the government of Ghana. Company’s diversified portfolio, recent launches, and focus on capital expenditure can be its key driver associated with growth.

Risks: Rise in input costs, high dependence upon other sectors, competition from local plus multi-national players, slow development of the agriculture growth segment, and so forth


Suggestion: Buy inside the Rs. 41. 75 – 42. 75 music group and add on dips in order to Rs. 38 | Focus on Price: Rs. 42. 05 | CMP: 43. 50

“We think the bottom case fair value of the stock is Rs. 46. 35 and the bull case reasonable value is usually Rs. fifty. 15 more than the following two-three quarters. Investors can purchase the share in the particular band associated with Rs. 41. 75 – 42. seventy five and add read more about scoops to 37, ” says HDFC securities.

The Mini Ratna category -1 PSU, NHPC Limited is definitely India’s largest hydro-power organization. The company is involved in the whole process of hydro-power project development. Present in 13 states, the company contributes to 15% from the total installed hydroelectric capacity in India. The particular company can enjoy a long-term gains with the expansion of its hydro-power capacity. Its concentrate on renewable energy equipment, the government’s positive stance on hydro-power electricity, strong creditworthiness of the business, are its major plus points.

Risks: Delay in execution of projects, counter party credit risk, and high relative tariff.

Power Grid Corporation of India

Recommendation: Buy in the particular band associated with 223-227 and add more on dips to 200-203 band | Target Price: 249 | CMP: 221

“We think the base case fair value of the share is 249 as well as the half truths case fair value can be 270 over the next two–three sectors. Investors can get the stock in the band associated with 223-227 plus add a lot more on scoops to 200-203 band, inch states HDFC securities.

The “Maharatna”, Power Main grid Corporation of India Ltd is India’s largest electric power transmission utility and it operates 86% of India’s inter-regional transmission network.

Apart from the key focus in tranny, the company is also present in telecom and consultancy. In 2022, Power Grid Corporation associated with India owned and operated 1, 73, 790 circuit km (ckm) of electric transmission lines and 270 sub-stations with a total transformation capacity of 4, 93, 042 MVA.

Risks: Company’s overdue receivables, project execution risk, private competition, inefficiency at the operational level, promoter risk, operational danger, etc .


Recommendation: Buy in 947-963 band and add further on dips in 850-862 music group | Target Price: Rs. 1057 | CMP: 957. 85

“We think the bottom case fair value of the particular stock is 1057 and the bull situation fair value of 1124. Investors can buy the in-stock 947-963 strap and include more on dips in 850-862 band, ” said HDFC securities.

Formed within 1988, Symphony Limited has a forte in typically the air cooler business in India. The company tried to diversify its business by beginning consumer durable production (geysers, washing machines, etc). However, the company suffered huge losses and was on the verge of bankruptcy inside 2002. Since then, Symphony kept its focus on air chillier production. Till now, the organization has managed to maintain the profitability along with the high brand recalling the value of their air coolers.

As India’s average temperature is increasing every year, this rise found in demand for air chillers can boost its sales in the long run. Being the market leader in neuro-scientific branded air refridgerators, Symphony can tap often the rise in demand for top quality coolers. High brand recall, strong global opportunities, and impressive return ratios are some from the factors supporting the company.

Risks: The company’s focus on seasonal business, competition from your unorganised segment, and dependence on a single product.

Disclaimer: The views plus recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors in order to check together with certified experts before taking any investment decisions.

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