Preferred small, midcap stocks to buy from the Bulls and Bears report
Motilal Oswal has given 8 stock ideas from the mid, small and large cap space, including the likes of Macrotech Developers, Ashok Leyland, Jubilant Foodworks, Clean Science, M&M Financial, Angel One, VRL Logistics, and Lemon Tree Hotel. So, the above small and midcap stocks are preferred buying ideas for the brokerage. According to the brokerage firm the Nifty now trades at 20 times FY23E earnings, comfortably above the LPA and offers limited near-term upside in its own view.
12 stocks to buy from the largecap space
In the largecap space, the stocks that the brokerage firm prefers investors to buy is Reliance Industries, Infosys, ICICI Bank, SBI, Bharti Airtel, ITC, Maruti Suzuki, Titan Company, Ultratech Cement, Hindalco, and Apollo Hospitals. One most notes that some of these stocks have run-up sharply and hence caution is also advised.
“We reckon the upside from here will be a function of stability in global and local macros and continued earnings delivery v/s. expectations. In our model portfolio, we maintain our overweight stance on BFSI, IT, Consumer, and Autos,” the brokerage has said.
Apart from the above stocks, Motilal Oswal highlights buying the stock of Dabur India
The brokerage firm also has a buy call on the stock of Dabur Inda. “A combination of mix improvement (the juice business, which boosted sales in 1QFY23, is a low margin business), material cost stability, further price increases, and a less challenging base is likely to result in healthy earnings growth from 2HFY23 onwards. We maintain our Buy rating and target a PE multiple of 45x, even as we roll forward to Jun’24 EPS to arrive at our target price of Rs 660,” the brokerage has said.
FIIs buying into Indian stocks now
Foreign Portfolio Investors recorded inflows of USD0.8b in Jul’22 after nine months of outflows to the tune of USD33.3b; YTD’CY22 outflows stood at USD27.7b. Domestic inflows decelerated to USD1.3b in Jul’22; YTD’CY22 inflows stood at USD28.1b.
The Earnings season was below expectations thus far of Motilal Oswal, according to the Bulls and Bears report. “For 1QFY23, sales/EBITDA/PBT/PAT growth of the MOFSL Universe (136 companies), stood at 40%/6%/18%/17% YoY (est. 39%/7%/20%/22%), respectively. Excluding BFSI, the companies within MOFSL Universe posted a Sales/EBITDA/PBT/PAT growth of 43%/7%/4%/(1)% YoY (est. 43%/8%/11%/12%), respectively,” the brokerage has said.