Angel Broking Top Picks For October 2021 With The Highest Potential Upside

1. Carborundum Universal:

For a target price of Rs. 1060 i.e. an upside of close to 22%, the brokerage recommends to buy the counter. The points highlighted for buying the scrip are as follows:

– Part of the Murugappa group, the company is into manufacturing of abrasives, industrial ceramics, refractories, and electro minerals (EMD) in India. The company products find application across diversified user industries. Also, the company is said to benefit from improving demand scenarios across its end user industries such as auto, auto components,engineering, basic metals, infrastructure, and power.

– The company’s performance in Abrasives and EMD segments has remained good in the June ended quarter. “EMD performance is likely to sustain owing to strong pricing and Volumes (due to China+1 strategy of its customers)”, adds the company.

– Overseas operations improved in Q1 and operations are expected to be at normal levels. EBIDTA for the quarter was up by 172.5% YoY to Rs. 118 crore

while EBIDTA margins also improved to 16.6%. Adj. Net profit for the quarter was up by 305% YoY to Rs. 78 cr.

2. Stove Kraft:

Angel broking is bullish on the kitchen appliances counter for a target price of Rs. 1288. This straight away implies gains of as much as 21 percent from the last closing price of Rs. 1067 per share.

Rationale for buying Stove Kraft:

– Stove Kraft Ltd (SKL) is engaged in the business of manufacturing & selling Kitchen & Home appliances products like pressure cookers, LPG stoves, non-

stick cookware etc. under the brand name of ‘Pigeon’ and ‘Gilma’.

– In the Pressure Cookers and Cookware segment, over the last two years, the company has outperformed Industry and its peers. Post Covid, organized players are gaining market share from unorganized players which would benefit the player like SKL.

– Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and wide distribution network.

Disclaimer:

The above listed stocks to buy are picked from the brokerage report. Please note investing in stocks is subject to market risks and one needs to be cautious at this point of time as markets have gone-up sharply. Neither the author, nor Greynium Information technologies Pvt Ltd would be responsible for losses incurred based on a decision made from this article.

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