3 Small & Midcap Stocks Where Sharekhan Has A “Buy” Call On

Sharekhan has come-out a few reports on select companies. Here are a few of these where the brokerage has listed as a "buy". Among these include names like GNA Axles, TCI Express and Dhampur Sugar Mills.

Buy the TCI Express Stock with a price target of Rs 2,070

Sharekhan has a "buy" on the stock of TCI Express with a price target of Rs 2070 on the stock. t. "The continuous expansion by setting up new sorting centres and automation of existing centres, addition of new branches and scale up of new businesses would provide more than 20% net earnings CAGR over FY2023EFY2025E.

Further, TCI has a strong balance sheet, a healthy cash flow-generation capacity, and high return ratios. TCI has corrected over 10% over the trailing four months, which we believe provides an opportunity to invest. Hence, we retain Buy with 12 months revised price target of Rs. 2,070 owing to marginally downwardly revised estimates and lower valuation multiple to factor in current macro sluggishness," the brokerage has said.

Buy Dhampur Sugar Mills stock with a price target of Rs 260

According to Sharekhan, Dhampur Sugar Mills is focusing on improving its growth prospects under a new management. "The company is focusing on expanding its distillery capacity, boosting growth prospects of the chemical business by launching speciality chemical products, improving productivity in the sugar segment, and reducing manufacturing costs in the coming years. The stock is currently trading at 11.8x/9.0x/7.1x its FY2023E/ FY2024E/FY2025E earnings. The long-term growth prospects of DSML are intact with a large focus on scaling up the ethanol and chemical business in the coming years. We maintain our Buy recommendation on the stock with an unchanged price target of Rs. 260," the brokerage has said.

Buy the stock of Blue Star with a price target of Rs 1465

According to Sharekhan, Blue Star's Q3FY2023 and 9MFY2023 performance has been better than expected on top-line and bottom-line fronts. "The company is well poised to outperform the industry and its peers as it strengthens its manufacturing footprints and enhances its distribution network and product portfolio to increase its market share. Similarly, the EMPS segment's growth prospects are brighter, given robust order book and continued traction in order inflows in domestic and international markets. We expect revenue/PAT to clock a CAGR of 21%/36% over FY2022-2025E. At current market price, the stock trades at ~28x FY2025E EPS. We roll forward our estimates to FY2025E EPS and maintain our Buy rating on the stock with a revised price of Rs. 1,465," the brokerage has said.

Disclaimer

Stocks are picked from the brokerage report of Sharekhan. The above-mentioned information is purely informational. Greynium Information Technologies, the Author and the 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.