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Hunting for stocks to buy on Muhurat trading day? Here are 6 largecap ideas


MUMBAI: The Muhurat Trading session to be held on Thursday evening is considered one of the auspicious occasion to invest in the stock market. The session will mark the end of the previous Samvat 2077 and the beginning of a new year for the financial community. Sentiment heading into the session has been muted given the correction seen in the market over the past two weeks. That said, the correction has provided buying opportunities in certain largecap stocks.

Below are six such largecap stocks that investors may consider picking up during the auspicious Muhurat trading session:

Indian Energy Exchange | Target Price: Rs 890
One of the blockbuster stocks of 2021, the country’s premium energy exchange has many tailwinds pushing it higher. “Given its near monopoly, IEX is a big beneficiary of changing dynamics in the short-term power market apart from the benefits of new exchanges,” said brokerage firm Ashika Stock Broking in a report. Valuations of the stock are demanding but its clean balance sheet and burgeoning growth prospects may justify the premium paid by investors.

Container Corporation of India | Target Price: Rs 830
A divestment candidate, CONCOR is also a play on the ongoing economic recovery in the country. With the land lease issue with the Indian Railways seemingly behind the company, investors are counting on acceleration in the divestment process. “Dedicated Freight Corridor will benefit CONCOR significantly through double stacking, higher load capacities and reduced turnaround time, thus leading to improved volumes and profitability,” Ashika Stock Broking said.

Honeywell Automation | Target Price: Rs 49,840
A leader in providing integrated automation and software solutions, Honeywell Automation India is backed to benefit from the government’s increased expenditure on infrastructure development like Smart Cities. Brokerage firm Ashika Stock Broking believes that recent muted performance of the company is a temporary phase as “domestic core segments (oil & gas, process, and building segment) is gaining traction and exports pick up further momentum”.

Whirlpool of India | Target Price: Rs 2,590
The white goods company is expected to be a major beneficiary of the improving disposal income of the Indian middle class over the next decade. With more than 17 per cent volume share in the refrigerator and washing machine segment, Whirlpool is seen as a better bet than other white goods companies dependent on a single category. “The company has been gaining market share in volume terms and its product portfolio is poised to deliver strong structural growth over the next decade, beyond the low base-led growth due to the COVID-19 outbreak,” Ashika Broking said.

Clean Science Tech | Target Price: Rs 2,350
One of the largest manufacturers of critical specialty chemicals, pharmaceutical intermediates and FMCG chemical, Clean Science is seen as one of the major beneficiaries of China+1 policy being adopted by global companies for their supply chain. “Given the healthy growth prospects and China plus one policy, largest manufacturer of certain specialty chemicals, expanding manufacturing facility, expanding R&D infrastructure, strong financials and healthy balance sheet augur well for the company’s performance going forward,” said brokerage firm Ashika Broking.

KPR Mill | Target Price: Rs 550
The integrated textile and sugar company is looking to expand capacity in the garmenting and ethanol business to boost its return on capital employed. “As company is going more to value added products only working capital will go up but the RoCE will improve going ahead. In value added products the capital requirement will be low and will generate healthy RoCE. Company is confident of creating wealth for shareholders,” Ashika Broking said.



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