2 stocks to buy as suggested by Motilal Oswal for long term investors

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Good financial performance of Mahindra CIE

Mahindra CIE’s consolidated revenue grew 23% year-on-year (2% QoQ) to Rs 20.9 billion (estimated at Rs 19.5 billion) in 3QCY21, led by a beating in operations in India.

According to Motilal Oswal, Indian business income grew 33% year-on-year (22% quarter-on-quarter) to 11.4 billion rupees (estimated at 10.3 billion rupees). The EBITDA margin improved 100 basis points year on year (140 basis points quarter on quarter) to 13.6% (estimated at 13.4%).

“He expects lower than expected sales in 4QCY21 (v / s previous estimates) due to the current semiconductor shortage. However, he is optimistic about growth in India and the European region over the years. CY22 and CY23, subject to semiconductor availability, ”the brokerage firm said. said.

Buy Mahindra CIE stock

Buy Mahindra CIE stock

According to Motilal Oswal, Mahindra CIE’s growth story is on the right track, driven by its organic initiatives (new products / customers).

“This, together with cost reduction initiatives in India and the EU, would lead to increased margins. Any order or significant growth in the portfolio of electric vehicles may constitute a reassessment factor. The stock is trading at valuations of 16.9 x / 13.9 x CY21E / CY22E consolidated EPS. We are maintaining our buy rating with a target price of Rs.300 per share (15x Sep’23E consolidated EPS), ”the brokerage said.

Buy Cyient stock

Buy Cyient stock

Cyient’s 2QFY22 revenue increased 4.6% QoQ in USD (moderately above our estimate of 4% QoQ). This was led by widespread growth in services (+ 4.4%) and DLM (+ 5.4%).

According to Motilal Oswal, the recent acquisition of Workforce Delta contributed 0.7% of service revenue to 2TFY22. Management has kept its double-digit growth forecast in FY22 in the Services business, while DLM’s growth is expected to be 15-20% (vs the previously 20% growth forecast).

“We are increasing our EPS estimate for fiscal 23 on a potentially better margin performance, driven by management’s mid-term outlook. We maintain our buy rating on attractive valuations. involving a 19% hike, ”the brokerage said.

Disclaimer

Disclaimer

The above actions are taken from the Motilal Oswal brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Information technology Greynium, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.


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