Broking firm StoxBox recommends at least four top investment picks for investors seeking stability and potential gains in the near- to mid-term. These stocks include Maruti Suzuki India Ltd, Godrej Agrovet, GHCL and Chalet Hotels.
These stock picks offer a balanced investment approach in the Indian market with promising growth potential despite current economic challenges, says StoxBox.
"Our top picks offer a balanced approach across diverse sectors, each with strong growth drivers. This selection highlights companies across various sectors that demonstrate resilience and strategic initiatives aimed at bolstering future performance," it adds.
Here are the price targets, investment rationale and other crucial details about these bets:
1) Maruti Suzuki India
The broking firm suggests buying Maruti at Rs 11,111 for targets ranging from Rs 11,666 to Rs 12,000. "The company reported a mixed Q2 FY25 performance, with a 0.2 per cent YoY revenue growth to Rs 35,589.1 crore but missed market expectations. Domestic sales fell 3.9 per cent YoY, while exports grew 12.1 per cent. PAT declined 17.4 per cent YoY due to higher discounts and commodity costs. However, MSIL is optimistic about festive sales, with a 14 per cent YoY growth in retail sales, and is focusing on expanding its EV and CNG offerings, including exports to Japan," StoxBox states.
2) Godrej Agrovet
Godrej Agrovet is advised to 'Buy' at Rs 715 for a target price of Rs 750. "Q2 FY25 results show steady performance, with revenue at Rs 2,448.8 crore (down 4.8 per cent YoY) and EBITDA up 10.9 per cent YoY to Rs 223.4 crore due to margin gains. Despite a 7.8 per cent YoY drop in net profit to Rs 95.8 crore, the Animal Feed and Oil Palm segments saw margin improvements, while the Dairy segment grew 3 per cent YoY on value-added products. A stronger H2 FY25 is anticipated, supporting a cautiously optimistic outlook," the broking firm says.
3) GHCL
StoxBox hints at buying GHCL shares in the Rs 596-610 range with potential upside of up to Rs 660-680 levels in the coming months. "GHCL demonstrates strong investment potential, with a 51 bps QoQ improvement in EBITDA margin (26.6 per cent) and an 8.4 per cent YoY increase in net profit to Rs 1,54.8 crore. Despite challenges in the global soda ash market, domestic demand, particularly driven by solar glass production, remains positive. Additionally, GHCL's Rs 200-250 crore investment in greenfield projects is expected to contribute to earnings from FY26," it states.
4) Chalet Hotels
The brokerage proposes to 'Buy' Chalet Hotels at around Rs 867 for an upside target of Rs 905 due to the company's strong Q2 FY25 performance. "Key highlights include a 20 per cent year-over-year (YoY) growth in total income to Rs 377 crore and an 18 per cent increase in hospitality revenue to Rs 335.2 crore, driven by a steady occupancy rate of 74 per cent and improved revenue per available room (RevPAR) of Rs 7,756. EBITDA rose 19 per cent YoY, reaching Rs 149.5 crore, although the company reported a net loss of Rs 138.5 crore. Projects like Bengaluru Marriott Whitefield and Dukes Retreat Lonavala are on track for completion by Q3 FY25, with further developments in Delhi and Navi Mumbai by FY27," it mentions.
Meanwhile, Indian equity benchmarks took a sharp beating today, reversing all the gains recorded in the previous session after Donald Trump's confirmed win in the US presidential election. Domestic indices plunged as concerns over weak second-quarter (Q2) earnings and high valuations came back to haunt investor sentiment.