Stocks to buy on May 16, 2023: IGL, GNFC, Sapphire Foods, and APL Apollo Tubes

Produced by: Harshita Tyagi
Designed by: Mohsin Shaikh

Brokerage houses have come out with research reports on select stocks, namely IGL, GNFC, Sapphire Foods India, and APL Apollo Tubes. Brokerages have a positive view on them. Here's what brokerages said about these counters

Stocks to buy or sell

Prabhudas Lilladher has a ‘buy’ rating on IGL stock with a target price of Rs 586 per share. The brokerage has, however, trimmed its FY24-25E earnings by 3%/6% to build in lower volumes

Indraprastha Gas

“We believe that IGL remains an enviable business model with high volume growth due to geographical expansion and addition of new buses and taxis and factor 22% CAGR earnings growth over FY23-25E,” said Prabhudas Lilladher

High volume growth

HDFC Securities has a ‘Buy’ call on Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC) stock with a fair value of Rs 690 per share

GNFC

“We think the fair value of the stock is Rs 690. Investors can buy the stock in Rs 619-626 band and add more on dips in Rs 565-575 band,” said HDFC Securities on GNFC stock

Add on dips

ICICI Securities has a ‘Buy’ rating on QSR firm Sapphire Foods India stock with a target price of Rs 1,277 per share. The brokerage likes company’s increased investments towards increasing relevance, awareness, innovation etc

Sapphire Foods India

According to ICICI Securities, Sapphire Foods’ margins are expected to remain under pressure in the near term. Key risks to the stock include irrational competition due to increased store expansion, failure to turnaround Pizza Hut

Margins to remain
under pressure

Motilal Oswal Financial Services has a ‘Buy’ rating on the stock with a target price of Rs 1,490. The brokerage expects the company to maintain its growth trajectory on a strong demand outlook

APL Apollo Tubes

“The incremental capacity from upcoming plants and debottlenecking, along with the addition of high-margin products from the Raipur unit, should result in strong volume growth and margin expansion going ahead,” said Motilal Oswal

Strong volume
growth likely

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

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