Business Desk – Stocks to Buy: Amid volatility in the stock market, several major brokerage houses are looking positively at select stocks. Morgan Stanley, HSBC, Motilal Oswal, Nuvama, and JM Financial have given buy ratings to the shares of five companies.
Based on these brokerage target prices, these stocks have a potential upside of approximately 24% to 40% over the next 12 months. However, these are only brokerage estimates, and actual returns will depend on market movements.
Morgan Stanley Bullish on PNB Housing Finance
Morgan Stanley has maintained an Overweight rating on PNB Housing Finance. The brokerage has a target price of ₹1,420 for the stock. This represents a potential upside of approximately 24.2% from the current price of ₹1,143.
According to the brokerage, the company’s strong retail loan disbursement and improved loan growth are positive signs for its business. If the company’s loan growth continues to be strong, this could reflect in its financial performance.
Britannia Industries expected to rise by 31%
Nuvama has maintained a Buy rating on Britannia Industries, a leading FMCG company. The brokerage has a target price of ₹7,240 for the stock. This represents a potential upside of approximately 31.4% from the current price of ₹5,508.
Nuvama believes the company’s growth remains strong. However, volatility in crude oil prices and tensions in West Asia remain key risks for the company. These conditions could impact costs and margins.
Hindalco Industries is expected to return more than 35%.
HSBC has a Buy rating on Hindalco Industries. The brokerage has set a target price of ₹1,430 for the stock. It expects a potential upside of approximately 35.7% from the current price of ₹1,053.50.
According to the brokerage, strong global aluminum demand could be positive for the company. Furthermore, production restrictions in China could also be a significant factor in the aluminum market. However, metal stocks can remain volatile due to global prices and economic conditions.
Up to 36% return potential in Time Technoplast
Motilal Oswal has maintained a Buy rating on Time Technoplast. The brokerage has a target price of ₹280 for the stock. This represents a potential upside of approximately 36.3% from the current price of ₹205.50.
The brokerage believes that the expansion of the company’s packaging and composite cylinder businesses could boost revenue and profit growth. The company’s business expansion and new opportunities are expected to improve financial performance in the future.
Ventive Hospitality forecasts the highest growth
Of these five stocks, Ventive Hospitality has the highest upside potential. JM Financial has maintained a Buy rating on this hospitality sector company. The brokerage has a target price of Rs 840 for the stock.
The target price represents a potential upside of approximately 40% from the current price of ₹603.20. JM Financial believes that the recent cost pressures on the company are likely temporary and that the company’s growth is expected to remain strong in the long term.
How much growth is expected in which stocks?
Based on the brokerage’s Target Price, potential upside is estimated at around 40% in Ventive Hospitality, 36.3% in Time Technoplast, 35.7% in Hindalco Industries, 31.4% in Britannia Industries and around 24.2% in PNB Housing Finance.
Keep these things in mind before investing
A brokerage’s Buy Rating and Target Price should not be considered a guarantee of investment. Target prices are analyst estimates and are subject to change as market conditions change. Before investing, it’s important to understand the company’s financial results, valuation, debt, growth, and sector-related risks.