Stock To Buy, Add: HDFC Securities Picks These 4 Stocks From Capital goods Space To Invest

HDFC Securities in its Q3FY23 Result Review report published on 7 January 2022 has placed Buy & Add call on 4 quality stocks from the Capital Goods space. These 4 stocks are Larsen & Toubro, Siemens, Cummins India, and Kalpataru Power Transmission. Among these 3 are large-cap stocks and 1 is a midcap stock. The brokerage has also assigned target prices to the stocks. Here are the key highlights of the stocks:

1. Larsen & Toubro Limited (L&T)

The brokerage has assigned buy on the stock of L&T with Rs 2,345 apiece. If you buy the stock at the current market price, it would give a return up to 13%. The stock last traded at Rs 2,086.55 apiece on NSE. The stock has given 8.42% positive return in the last 1 year. It has given 58.56% in the last 3 years and 58.69% in the last 5 years, respectively.

Larsen & Toubro Limited is a multinational conglomerate and part of Larsen & Toubro Group, primarily engaged in providing engineering, procurement and construction (EPC) solutions. It is a large-cap company with a market capitalisation of Rs 2,93,190 crore. 

2. Siemens Limited

HDFC Securities has assigned an "Add" call to the stock of Siemens with a target price of Rs 3,111 apiece. The brokerage with the given target price sees a potential upside of 7% from its current level. The stock is currently trading at Rs 2,891.70 apiece on NSE.

In a week it has given 2.31% and in the last 1 month gave 4.63%. The stock has given a 26.15% positive return in 1 year, and 96.11% in 3 years, respectively. It has given 124.74% multibagger returns.

Siemens Limited is a large-cap company with a market capitalisation of Rs 1,02,979 crore. It offers products, integrated solutions for industrial applications for manufacturing industries, intelligent infrastructure and buildings, drives for process industries, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.

3. Cummins India Limited

HDFC Securities has a buy call on Cummins India with a target price of Rs 1,597 apiece. The stock is currently trading at Rs 1,431.35 apiece on NSE. If you buy the stock at the current market price, it is likely to give you 12% gains considering the given target price of the stock by the brokerage.

The stocks surged 3.69% in the past 1 week, however, it has fallen 1.22% in the last 1 month. It jumped 16.46% in the last 3 months. It gave 51% positive return in the last 1 year and 150.81% multibagger return in the last 3 years. It has given 49.54% positive return in the last 5 years.

Cummins India Ltd is a part of the Cummins Inc. Group USA. Cummins India is a leading manufacturer of diesel and natural gas engines and engaged in the business of manufacturing, trading and selling of engines and allied activities. With a market capitalisation of Rs 39,677.02 crore, it is a midcap  company.

4. Kalpataru Power Transmission Limited

The brokerage has placed a buy on the stock of Kalpataru Power with a target price of Rs 619 apiece. On NSE, the stock is currently trading at Rs 532.40 apiece. If you buy the stock at the current market price, you can anticipate 17% gains in 12 months.

It surged 4.54% in the last 1 week, however, it has fallen 4.74% in the last 1 week. It gave 43.22% positive returns in the last 1 year. In 3 years it gave 28.4% positive returns. It gave 8.89% positive returns in the last 5 years.

Kalpataru Power is a Mid Cap company operating in the Power sector and has a  market capitalisation of Rs 7,927.93 Crore. The company is part of the Kalpataru Group. It is a diversified conglomerate with an interest in Power Generation, Real Estate, Agri Logistics and EPC in major infrastructure segments like Power Transmission and Distribution, Buildings & Factories, Water & Irrigation, Roads & Highways, Railways and Oil and Gas. 

Capital goods companies to benefit from energy transition, decarbonisation, export pick up and ramp up in public/private spends

According to the brokerage, Capital good companies have witnessed strong order bookings until now, with recession fears looming; sentimentally, the global orders may see some softening. "In domestic markets, we expect recovery to continue, driven by both government and private capex. Overall, some softness may be there in Q3FY23 due to a delay in decision-making and overall slow ordering momentum. In the near- to medium-term, decarbonisation as a theme is driving brownfield capex while greenfield capex recovery is picking up. In the long term, we expect global political realignment to result in lagged impact on global supply chain resets, with India emerging as an alternative manufacturing pole for global market," the brokerage has said.

It added, "We are witnessing increasing capacity expansion by MNCs in India to cater to domestic as well as global demand. The share of exports in the order book and revenue is increasing, with good demand support from Indian corporates."

Disclaimer

The stocks have been picked from the brokerage report of HDFC Securities. 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.