Two L&T Group's Midcap Stocks To Buy As Recommended By Top Brokerages For High Returns

The Two leading brokerages, Motilal Oswal & Geojit have Picked L&T Group's two stocks, L&T Technology Services and L&T Finance Holdings with a Buy rating. According to the brokerages the stocks have the potential for high returns in 2023. Check below the key highlights about the stocks:

1. L&T Technology Services Ltd.

Motilal Oswal has placed a buy on the stock of L&T Technology Services with a target price of Rs 3,940/share. If you buy the stock at the current market price, it would give up a return up to 21%.

The last traded at Rs 3,230.70/share on NSE, falling 4.90% as compared to the previous close. The stock recorded its 52 week low on 4 July 2022 at Rs 2,924.20/share and 52 week high on 5 April 2022 at Rs 5,295/share, respectively.

The stock has given 98.47% positive return in 3 years and a massive 224.11% in 5 years, respectively. However, in the past 1 year, it has fallen 36.89%. L&T Technology is an L&T Group's midcap company that operates in the IT sector. It has a market capitalisation of Rs 34,114.74 crore.

According to the brokerage, L&T Technology (LTTS) posted a flat QoQ topline growth in constant currency (CC) in 3QFY23, missing our estimates of ~2% QoQ growth. This was led by seasonality and higher-than-expected furloughs, especially in Plant Engineering (-4.1% QoQ), Telecom & Hi-Tech (-2.8% QoQ) and Medical devices (-1.1%), while Transportation (+4.4% QoQ) and Industrial Products (+1.1% QoQ) offset the drag. Despite weak growth, EBIT margin improved 60bp QoQ over a low base (wage hike in 2QFY23), beating our estimates of 18.3%.

 

2. L&T Finance Holdings Ltd.

Leading brokerage firm Geojit has recommended investors to buy the stock of L&T Finance Holdings with a target price of Rs 110/share. Stock purchased at the current market price could fetch returns up to 17%.

The stock's current market price on NSE is Rs 94.70/share, falling 1.20% as compared to its previous close. Its 52 week low was recorded on 7 March 2022 at Rs 58.50/share, while its 52 week high was on 16 January 2022 at Rs 98.30/share.

The stock has given 21.18% positive return in the past 1 year. However, in the past 3 years, it has fallen 19.81% and in the past 5 years, it has fallen 45.02%, respectively. L&T Finance Holdings is L&T Group's midcap Financial sector company that operates as NBFC. It has a market capitalisation of Rs 23,467.19 crore.

According to the brokerage, In Q3FY23, the company's net interest margin (NIM) + fees margin improved to 8.80% on account of highest ever quarterly retail disbursement and prudent asset-liability (ALM) management. Retail mix stood at 64% vis-à-vis 58% in Q2FY23 and 50% in Q3FY22. The company also accelerated the sell-off of the wholesale and other noncore businesses.

 

Disclaimer

The stocks have been picked from the brokerage reports. 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 consult with certified experts before making any investment decision.