Which growth stocks to buy

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Thermax Thermax Limited’s consolidated Q4 performance was marred by lower profitability across all its segments despite healthy topline growth. Order inflow witnessed 127% y-o-y rise to Rs. 3,396 crore, while order book improved ~69% y-o-y to Rs. 8,812 crore. Order intake is going to be healthy given broad-based revival in capex and increasing traction in exports/international markets. Margins are expected to improve in the coming quarters on account of price hikes taken in Q4 and stability in commodity prices. Outlook We maintain Buy on Thermax Limited (Thermax) with an unchanged PT of Rs. 2,400, given strong revenue visibility, promising order pipeline, and expectations of improving margin trajectory going forward. For all recommendations … [Read more...] about Buy Thermax: target of Rs 2400: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Geojit's research report on Britannia Industries Britannia Industries Limited is a leading food-products company in India. The company sells various brands of confectionaries in India and globally. Q4FY22 sales was up 15.5% YoY to Rs. 3,508cr driven by volume growth. Britannia Industries Limited registered modest PAT growth of 4.3% in Q4FY22 reaching Rs. 380cr. EBITDA margin contracted by 90bps YoY to 15.7%, due to higher commodities prices. Inflationary pressure on input costs to weigh on company’s near-term performance. However, the efforts taken by management to handle the commodity price inflation will help to maintain profitability. Outlook We reiterate our BUY rating on the stock with a revised target price of Rs. 3,890 based on 45x FY24E adj. EPS. Close … [Read more...] about Buy Britannia Industries; target of Rs 3890: Geojit

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Prabhudas Lilladher's research report on Narayana Hrudayalaya NARH have announced aggressive capex plan across India and Cayman operations over next 2-3 years. This enhances growth visibility beyond FY24 however in near term it may increase debt and impact return ratios. Outlook We maintain our estimates and ‘Buy’ rating with TP of Rs773/share, based on 20x FY24E EV/EBITDA for India business and 16x EV/EBITDA for Cayman hospitals. At CMP, stock is trading at 15.7x EV/EBITDA (adj for IND AS) and 26x P/E on FY24E. With strong performance at Cayman, steady pick up in mature India hospitals and ramp-up at new hospitals, we expect EBITDA CAGR of 18% over FY22-24E. Despite capex intensity going up, RoE/RoCE will remain healthy at 24% by FY24E. Close For all … [Read more...] about Buy Narayana Hrudayalaya; target of Rs 773: Prabhudas Lilladher

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × YES Securities' research report on Gulf Oil Lubricants India The 4QFY22 reported Ebitda at Rs 891mn (+14% YoY; +16% QoQ) stood ahead of our and street estimates. The strong profitability and a beat on our estimates was primarily driven by higher than estimated realization and lower than estimated raw material costs, even as sales volume stood in-line. While the FY22 operating cashflow did stand YoY weaker at Rs (237)mn, but that was primarily on account of a) increase in sales and prices during 4Q leading to an increase in receivables as of Mar’22 end and b) volatile operating environment prompting GOLI to store higher than normal raw material, both the factors are expected to normalize going ahead. In the times to come, led by revival in rural sales ,growing penetration of vehicles in … [Read more...] about Buy Gulf Oil Lubricants India; target of Rs 645: YES Securities

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × YES Securities' research report on The Ramco Cements The Ramco Cements (TRCL) reported better-than-expected EBITDA/te of Rs924 (beat YSEC est. of Rs774) due to higher-than-expected NSR of Rs5368/te (+2% than YSEC est.) and in-line total cost of Rs4444/te in Q4FY22. The extended monsoon and weak demand in the southern region resulted flat y/y volume growth to 3.2MT (miss of 9% to YSEC est.) translate in revenue of Rs17.1bn miss of 7% to YSEC est. in Q4FY22. For FY22, TRCL posted a volume growth of 11MT (+11% y/y; YSEC est. 11.3MT) with NSR rise of +3% y/y resulting in +14% revenue growth, however EBITDA decline by 17% y/y as operating cost surged by +26% y/y in FY22. The inflated fuel/diesel cost eroded the EBITDA/te to Rs1168 decline by 25% y/y in FY22, but sequential price hikes and … [Read more...] about Buy The Ramco Cements; target of Rs 1135: YES Securities

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Motilal Oswal's research report on Divi’s Laboratories DIVI delivered a better-than-expected 4QFY22, with the highest ever quarterly sales and EBITDA. The performance was largely led by strong traction in the Custom Synthesis (CS) segment. We lower our FY23/FY24 EPS estimate by 11%/14%, factoring in: a) reduced sales of COVID-related products, considering the low number of cases globally, b) a gradual uptick in growth in the Generics segment, and c) delay in implementation of Kakinada capex. We value DIVI at 33x 12-month forward earnings to arrive at our TP of INR4,480. DIVI continues to: 1) work on contract research and manufacturing services (CRAMs) projects, 2) develop its Generics API pipeline, and 3) subsequently build capacity to meet sustainable as well as situational opportunities. … [Read more...] about Buy Divi’s Laboratories; target of Rs 4480: Motilal Oswal

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Indigo Paints Indigo Paints Limited (IPL) posted good performance in an inflationary environment. Revenue grew 13% y-o-y (largely a price led growth) and OPM improved 176 bps y-o-y to 18.6%. PAT grew 39% y-o-y to Rs. 34.6 crore. IPL has shifted focus on improving reach/output per dealer in Tier 1 and Tier 2 towns. The company targets to grow 2x the industry in the medium term with revamped focus on large towns and steady growth in smaller towns. Revamped strategy is unlikely to impact profitability. Margins will gradually improve post correction in input prices and because of better operating leverage in the medium term. Outlook IPL’s stock price has corrected by 38% from its high and is currently trading at 52.3x and 37.7x its FY2023E and FY2024E … [Read more...] about Buy Indigo Paints: target of Rs 2250: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on The Ramco Cements The company reported marginally lower than expected revenues although operational profitability was better than expected for Q4FY2022. It witnessed decent demand growth post Q4FY2022 till date. The management expects minimum 10-15% y-o-y volume growth along with higher premium product sales contribution for FY2023. It would have to further hike prices to surpass EBITDA/tonne of Rs. 1300 at current cost of production. The capacity expansion plans largely remain on track. The company to incur a Rs. 1350 crore capex over two years. Outlook We maintain a Buy on The Ramco Cements Limited (Ramco) with a revised PT of Rs. 850, lowering our valuation multiple to factor in sustained volatility in energy costs. For all recommendations … [Read more...] about Buy The Ramco Cements: target of Rs 850: Sharekhan

- A + A NEW YORK (May 24): Across Wall Street, from BlackRock Inc to T Rowe Price Group Inc, some veterans of the bond market's booms and busts are seeing signs that it is safe to start buying again. Few are eager to call the bottom just yet, not with inflation still surging at a four-decade high and the Federal Reserve (Fed) only at the early stages of an aggressive cycle of monetary policy tightening to contain it. But yields have jumped so much this year, nearly doubling those on 10-year Treasuries, that it recalls past buying opportunities that paid off when the tide turned. On top of that, there are indications that the economy is cooling, with big-box retailers reporting a shift in consumer spending and home sales on the decline. And the drubbing taken by risky assets from growth stocks to cryptocurrencies has turned Treasuries into a haven again, delivering gains to those who bought when yields peaked earlier this month. All of that has long-time money … [Read more...] about Wall Street is buying Treasuries again in bet worst is over

Share to Twitter Share to Linkedin We think that Penumbra (NYSE: PEN) , a medical devices company focused on interventional therapies, currently is a better pick compared to the Gap stock (NYSE: GPS), a specialty retailer selling casual apparel, accessories, and personal care products, despite it being the more expensive of the two, trading at 6.8x trailing revenues compared to 0.2x for Gap. The gap in the valuation of these two companies can be attributed to Penumbra’s PEN superior revenue growth and better financial position, as discussed below. We compare these two companies due to their similar market capitalizations. If we look at stock returns, Penumbra’s -45% change is comparatively better than the -67% return for Gap over the last twelve months. This compares with a -7% change in the broader S&P 500 index. Gap faced headwinds with supply chain issues weighing heavily on its stock performance over the recent quarters. An earnings … [Read more...] about Strong Revenue Trends And Better Prospects Make Penumbra Stock A Good Bet