HUL, Tata Chemicals, Havells and other stocks to buy on
April 19, 2023
Produced by: Pawan Kumar Nahar
Designed by: Pragati
Stock brokerages recently came out with research reports on select stocks namely Hindustan Unilever (HUL), Camlin Fine Science, Havells India and Tata Chemicals. All these four stocks have received ‘Buy’ ratings from individual brokerages. These brokerages see an up to 30% upside on the counters.
Stocks to buy
Hindustan Unilever
Nuvama Institutional Equities expects HUL to gain market share, scale up D2C, improve margins in FY24 and premiumise portfolio. It has maintained a ‘Buy’ rating on the stock with a price target of Rs 3,365.
Despite being a huge company, HUL is agile and nimble in capturing emerging consumer trends, the brokerage said.
Capturing consumer trends
This comes in handy catering to premium BPC, wherein trends can change rather quickly and agile production –in small batches sizes – is called for, Nuvama said. HUL nailed it by scaling up nano factories and it has set up six so far, and planning two more, the brokerage pointed out.
Tata Chemicals
Kotak Institutional Equities has maintained its ‘Buy’ rating for Tata Chemicals with a fair value of Rs 1,210, as it expects Q4FY23 earnings to be strong due to upward revisions. Uncertainties though remain around demand and supply and will need monitoring, it said.
Headwinds ahead
Tata Chemicals announced 3-4% price cuts across India for light and dense soda ash effective from April 17, 2023. The cut comes amid falling soda ash prices in China since mid-March, as the market reacts to the unexpected news of substantial capacity addition in Inner Mongolia from May 2023, Kotak said.
Havells India
Reliance Securities has a ‘Buy’ rating on Havells India with a target price of Rs 1,575 on the stock. It has cited a strong uptick in demand over the next couple of years, improved growth visibility, and better operating efficiency as the key triggers.
Market consolidation
"The AC category is well established for Lloyd and the brand has gained market share over the past few years, positioning itself among the top 3 players in the Room AC category. We expect Havells to benefit from the market consolidation, with a strong shift in consumer preference from the unorganised to organized in the near term," RSec said.
Camlin Fine Sciences
Axis Securities sees rising stake of promoters as a positive event further confirming the belief in the underlying business and the promising future growth prospects of the business. It has maintained a 'buy' rating on the stock valuing it at a price of Rs 180.
Catering to the US markets
"The company is one of the two largest Vanillin producers in the world catering largely to the US market. Global demand for CFS products remains robust despite the ongoing global volatility as 80-85% of Camlin's products are directly or indirectly used in Human food consumption, the demand for which is relatively inelastic," said Axis Securities.
Disclaimer
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.