Buy, Accumulate, Sell Call To 3 Stocks For Higher Returns As Recommended By Geojit

Geojit has recommended buy, sell, and accumulate call to 3 stocks for higher returns. These stocks are Tanla Platforms Ltd (Buy), ZF Commercial Vehicle Control System India Pvt Ltd (Accumulate), and JK Lakshmi Cement Ltd (Sell). Check key details below:

1. Buy Tanla Platforms With A Target Price Of Rs 920

Geojit has recommended investors to buy Tanla Platforms Ltd with a target price of Rs 920. The current market price of the stock is Rs 713 apiece with an intraday gain of 1%.

If you buy Tanla Platforms, you will get potential 29% return. The small cap IT Software sector stock has a market capitalisation of Rs 9691 crore. The stock has given maximum 1672% return in last 5-years and declined 61% in last 1-year.

According to Geojit, "On the view of a recovery in revenue and steady expansion of EBITDA margins, it is likely to show a boost in EPS during the period FY23-FY25E. Due to product price disruption, stock appears reasonable and currently trades at a PE of 17x on FY25E, which is less than its 5-year average (5 Yr Avg = 27x). We expect earnings to grow at a 21% CAGR during FY23-25E. Hence, we value Tanla at 19x FY25E with a target price of Rs. 920 per share and recommend a Buy rating."

2. Accumulate ZF Commercial Vehicle With A Target Price Of Rs 10,043

Geojit has assigned accumulate call to ZF Commercial Vehicle with a target price of Rs 10,043 apiece with potential return of 15% in a target time of 12 months.

The current market price of the stock is Rs 8945 apiece with intraday gain of over 2%. The mid cap stock operating in Auto Ancillaries has a market capitalisation of Rs 16,966 crore.

The stock has given 38% return in last 3-years and 22% in last 5-years, and 6% in last 1-year. The stock has declined 10% in last 3-months.

According to Geojit, "The company's capex plan of Rs.1800cr in the next 10 years for higher export and new product innovation will enhance the overall revenue visibility. We except 24% earning CAGR over FY23E-25E and value ZFCV at 44x FY25E EPS and maintain our Accumulate rating at CMP with a target of Rs. 10,043."

3. Sell JK Lakshmi Cement With A Target Price Of Rs 710

The analyst has assigned sell call to JK Lakshmi Cement with a target price of Rs 710 apiece in a target time of 12 months. The current market price of the stock is Rs 819 apiece.

The mid cap stock has given 191% return in last 3-years, 85% return in last 5-years, and 43% return in last 1-year. The company has a market capitalisation of Rs 9638 crore.

According to the brokerage firm, "Demand outlook is positive given GoI's strong focus on infra & Housing. The expansion of 2.5MT will support the future growth. JKLC currently trades at 1Yr fwd P/E of 9.5x, we value JKLC at 7x FY25E EV/EBITDA (3Yr Avg=7x) to arrive at a target price of Rs.710 but downgrade to SELL rating due to high valuation."

Disclaimer

The stocks have been picked from the brokerage report of Geojit. 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.