3 Stocks To Buy Today From Motilal Oswal

Markets have fallen a tad bit in trade today, though they are just 1% below their peak levels. Brokerage firms continue to upgrade stock prices and see further potential for an upside from here. Here are a few stocks being recommended by Motilal Oswal to buy today.

SAIL

The firm is bullish on the stock of Steel Authority of India and sees good traction going ahead. It has suggested to buy the stock of SAIL for long term with a price target of Rs 185.

According to it, SAIL a government majority owned company continues to reap the benefits of higher steel prices as 4QFY21 and EBITDA grew 21% QoQ, despite a wage revision impact.

"In the absence of significant capex, net debt declined further to Rs 366 billion (v/s Rs 538 billion in March'20).

With steel prices at a record high, SAIL is poised to post its best ever EBITDA/t of Rs 20,000 in 1QFY22. We upgrade our FY22E/FY23E EBITDA estimate by 71%/33% to factor in higher steel prices, and estimate a further Rs 102 billion (Rs 25/share) fall in net debt to Rs 265 billion (1 times EBITDA) in FY22E. We expect dividend payout to be strong at Rs 10 per share in FY22E (7.5% yield), based on an expected 25% payout ratio. Reiterate Buy wih a target price of Rs 185 per share," the brokerage firm has said. The shares of SAIL were last seen at Rs 136.35

SUN TV Network

SUN TV Network is another stock that broking firm Motilal Oswal has recommended to buy. The company is a leading player in programme and broadcasting.

The firms sees subscription revenue expected to grow in the double digits in FY22E, led by digitization trends, along with a rise in OTT subscriptions. Viewership trends are yet to see a steady uptick.

"Plans to launch new TV shows and movies and a Marathi channel in FY22 have been delayed given the second COVID wave. However, the most concerning factor is the delayed OTT investment - besides monetizing the existing library, the company has not made any material inroads in the space. Furthermore, it has curbed the dividend payout to just Rs 5 per share, the lowest since FY10. Sun TV trades at FY22E/FY23E P/E of 14.1x/12.9x. We value the stock at FY23E price to earnings of 15 times to arrive at target Price of Rs 620. Maintain Buy," the broking firm has said.

Sun TV Network shares were last seen trading at Rs 517.50 on the NSE.

 

LUPIN – Motilal Adopts Neutral Stance

Lupin recently received a warning letter from the US health regulator for its Somerset facility in the US.

According to Motilal Oswal, although regulatory issues persist at select sites, we expect a 35% earnings CAGR over FY21-23E, led by a 19%/14% sales compounded annua growth rate in the US/Domestic Formulation (DF) market, supported by 400 basis points margin expansion.

"This is attributable to potential inhaler launches, increased traction in existing commercialized niche products, and a better outlook for the DF segment. We value LPC at 25 times 12 month forward earnings to arrive at our price target of Rs 1,32 per share. We maintain Neutral as the current valuation adequately factors in potential earnings growth over the next two years and thus provides a limited upside from current levels," the brokerage has said.

LUPIN shares were last seen trading at Rs 1,189 today.

 

Disclaimer

The above mentioned stocks have been picked from brokerage reports. The author, the brokerage or Greynium Information Technologies do not take any responsibility for losses that maybe incurred. The above article is for informational purposes only.