2 Stocks To Buy: Motilal Oswal Recommends Multibagger Stocks For 31% Gain

Leading brokerage firm has recommended 2 stocks to buy. These stocks are Hindalco Ltd and Jubilant FoodWorks Ltd. If you buy Jubilant FoodWorks at the current market price of Rs 566, you will get a potential return of 31%. Meanwhile, if you Hindalco Industries Ltd at current market price of Rs 417, you will get a likely return of 22%. Check key takeaways below:

1. Jubilant FoodWorks Ltd

Motilal Oswal has suggested investors to buy Jubilant FoodWorks Ltd with a target price of Rs 740 apiece. If you buy Jubilant today, you will get a potential return of 31%.

According to Motilal Oswal, "We reiterate our Buy rating with a TP of INR740 (40x Sep'24 pre-Ind AS 116 EV/EBITDA). Premium multiples are assigned for the best-of-breed operating and financial metrics in a high-growth category."

JUBI added over 7m customers to its loyalty program within a short span of time (launched in May'22). This along with its highest ever own channel contribution to total delivery sales augurs well in strengthening its moats.

The current market price of Jubilant is Rs 566 apiece with an intraday decline of 7.55%. The company has a market capitalisation of Rs 37,376.93 crore. The stock has given a maximum return of 243% in last 5-years.

2. Hindalco Industries Ltd

Motilal Oswal has recommended investors to buy Hindalco Industries stock with a target price of Rs 510 apiece and potential return of 22%. The current market price of Hindalco is Rs 417 apiece with an intraday decline of 4.69%.

According to Motilal Oswal, "We raise our SoTP-based TP of Hindalco to INR510 from INR480. The stock is trading at 5.8x/5.0x our FY23E/24E EV/EBITDA. On P/B estimates, the stock is available at 1.5x our FY23E. Maintain BUY."

We believe the weakness in the stock post-Novelis result should provide an opportunity to buy as we remain confident about the long-term opportunities of Novelis and its leadership in both beverage can and automotive markets, added the analyst.

The current market price of Hindalco is Rs 417 apiece with a market capitalisation of Rs 93,708.01 crore. The Metals stock has given a maximum return of 105% in last 3-years.

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.