3 Midcap & Large cap Stocks Including Tata Stock To Add In March, Suggested By Top Broking House

Ashika Stock Broking, a leading brokerage firm, in its March 2023 report has picked 3 stocks namely Tata Consumer Products Ltd, Jubilant Foodworks Ltd, and Crompton Greaves Consumer Electricals Ltd, with an "Add" call.

Tata Consumer Products Ltd. (TCPL) - Stock Performance

The Stock of TCPL last traded at Rs 715.25 apiece on NSE. Its 52-week high is Rs 861.15 apiece and 52-week low is Rs 650.20 apiece, respectively. The stock has given 106.63% positive return in 3 years and 160.23% in 5 years, respectively. However, it has fallen 0.47% in 1 year. Ashika Stock Broking recommended "ADD" the stock. This is a large-cap stock FMCG sector stock.

 

Tata Consumer Products Ltd. (TCPL) - Brokerage's Comments

According to the brokerage, Going forward, it is expected that while price actions and structural cost savings in the International business along with normalization of margins in the India Salt business (driven by ~33% price increase in the last 12 months till Aug'22) will help in supporting the margins. The current growth trends and low margins are only impacted by transitory macro factors (commodity inflation in international business & adverse currency movement). "Post the recent correction and consequent correction in the valuation premium vs peers, the stock is now at a more reasonable zone from long term investment perspective with favorable risk reward ratio. Thus, we are recommending to Add the scrip. At CMP, the scrip is valued at P/E ratio of 47.5x on FY24E Bloomberg consensus EPS of Rs. 15.1," the brokerage said.

Jubilant Foodworks Ltd. - Stock Performance

The last traded share of Jubilant Foodworks is Rs 442.90 apiece on NSE. Its 52-week low is Rs 418.35 apiece and 52-week high is Rs 652.35 apiece, respectively. The stock in the 3 years gained 26.05% and in 5 years it gained 120.8%, respectively. However, in the past 1 year, it declined by 23.91%. The brokerage recommended "ADD" the stock. This is a Midcap QSR sector stock.

Jubilant Foodworks Ltd. - Brokerage's Comments

According to the brokerage, Jubilant Food's EBITDA margins might have hit the trough in Q3, but improvement will be gradual in near term played through improvement in LFL growth and reduction in material costs. The company has unparallel advantage in terms of reach and value for money proposition and its own delivery system and robust balance sheet are among the competitive edges. "The recent underperformance and general muted investor sentiment have weighed on the stock prices. However, we believe, the company will continue to be one of the major beneficiaries of the growth in QSR industry and recommend to ADD the scrip. At the CMP, the scrip is valued at P/E ratio of 49.1x FY24E Bloomberg consensus EPS of Rs 9.0," the Ashika Stock Broking said.

Crompton Greaves Consumer Electricals Ltd. (CGCE) - Stock Performance

The brokerage has assigned a "Add" to the stock of CGCE with a target price of Rs 485 apiece. With the given target price, it can give a robust return of up to 57%. The stock last traded at Rs 309.50 apiece on NSE, jumped 1.86%. Its 52-week high is Rs 431.45 apiece and 52-week low is Rs 291.35 apiece, respectively. The stock has given 10.93% positive return in 3 years and 33.03% in 5 years, respectively. However, it declined 27.77% in the past 1 year. This is midcap Consumer Electricals sector stock.

Crompton Greaves Consumer Electricals Ltd. (CGCE)- Brokerage's Comments

According to the brokerage, The stock has corrected nearly 27% from our recommendation and it appears that it has discounted all its near term negatives. "The scrip is now valued at P/E multiple of 29x on FY24E Bloomberg consensus EPS of Rs 10.5, which is nearly 32% discount to its 3 year average P/E multiple and looks compelling with favorable risk reward ratio. Hence, we recommend to ADD the scrip with target of Rs 485 from long term investment perspective," the brokerage has said.

Disclaimer

The stocks have been picked from the brokerage report of Ashika Stock Broking. 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.