Maruti Suzuki, Dalmia Bharat, Mahindra Lifespace and SBI Life Insurance have found a place in HDFC Securities’ Buy list. Except for Mahindra Lifespace, all the companies were trading in green today. In comparison, The NSE Nifty 50 was trading above 17850 and BSE Sensex jumped 100 points. In sectoral indices, Bank Nifty surpassed the 42900 mark today while Nifty Pharma fell 0.4%.
Stock call: HDFC Securities ‘Buy’ recommendation on these stocks
Maruti Suzuki: Buy – CMP: Rs 8514.3 – Target Price: Rs 10214 (19.9% upside)
Maruti Suzuki share price rose 0.13% to Rs 8514.3 today. The company’s shares have risen 3% in the past one month and over 9% in the last one year. Earlier this week, Maruti Suzuki reported a 42% on-year jump in its net profit at Rs 2670.80 crore in Q4FY23 and approved a dividend of Rs 90 per equity share with a face value of Rs 5 each. “We expect the stock to get rerated once MSIL starts recovering lost market share. We upgrade the stock to BUY (from ADD earlier) with a revised TP of INR 10,214 / share (from INR 9,959 earlier) as we roll forward to FY25 earnings (from Sep 2024 earnings),” said analysts at HDFC Securities.
Dalmia Bharat: Buy – CMP: Rs 1944 – Target Price: Rs 2350 (20.8% upside)
Dalmia Bharat share price rose 0.56% to Rs 1944 today. The company’s shares have risen 4% in the last one month and over 25% in the past one year. The company reported a two-fold increase in its consolidated net profit at Rs 589 crore in Q4FY23 and the board has recommended a final dividend of Rs 5 per equity share for the financial year ended March 31, 2023. “We maintain our BUY rating on Dalmia Bharat with an unchanged TP of INR 2,350/sh (13x its Mar-25E consolidated EBITDA). We continue to like DALBHARA for its robust volume and margin outlook,” said analysts at HDFC Securities.
Mahindra Lifespace: Buy – CMP: Rs 365.7 – Target Price: Rs 521 (42.4% upside)
Mahindra Lifespace Developers share price fell 0.64% to Rs 365.7 today. The company’s shares have risen over 11% in the last one month while they have fallen 1% in the last one year. The company’s consolidated net profit fell 99.6% to Rs 0.54 crore during the quarter ended March 2023 as against Rs 137.7 crore during Q4FY22. “Given the tailwinds in the industrial business, the upcycle in the residential business, a robust balance sheet, a trustworthy brand image, and a robust business development pipeline, we remain constructive on MLDL and maintain a BUY rating, with NAV-based TP of INR 521/sh,” said analysts at HDFC Securities.
SBI Life Insurance: Buy – CMP: Rs 1136.25 – Target Price: Rs 1580 (39% upside)
SBI Life Insurance share price jumped 1.73% to Rs 1136.25 today. The company’s shares have risen 2.4% in the last one month and nearly 6% in the last one year. The company reported a 15% jump in net profit to Rs 777 crore for Q4FY23 against Rs 672 crore clocked in the year-ago period. “We expect SBILIFE to deliver FY23-25E APE/VNB CAGRs of 12/12% and retain BUY with a lower TP of INR1,580 (2.4x Mar-25E; rolling forward multiple adjustments and factoring in high uncertainty to FY24E estimates),” said analysts at HDFC Securities.