Here is a list of 7 stocks especially curated by StoxBox research for the month of November 2023.
Table of Contents
Bajaj Auto
Bajaj Auto’s recent performance has been strong, thanks to the growth in its domestic motorcycle and three-wheeler segments. They have managed to maintain a good market share of 13.39% in Q2 FY 24, which is impressive considering the market’s ups and downs.
One key factor contributing to their success is their focus on selling premium motorcycles, especially those with engine sizes of 125cc and above. In this category, they have outperformed the market by six times.
They are also doing well in the three-wheeler market, with high sales and a successful launch of an electric three-wheeler in May 2023. They have achieved a 9% market share in this segment, and in Agra, where they first launched it, they are leading with a 68% share.
Furthermore, Bajaj has improved its market share in the two-wheeler market from 4.5% to 11% in Q2 FY 24 by adjusting prices and launching better versions of their Chetak brand. They have also expanded to more cities, going from 88 to 120.
Considering all this, we recommend buying Bajaj Auto at the current price of Rs 5350, with a target of Rs 5784 and a stop loss of Rs 5199 in the short term.
Gland Pharma
Gland Pharma is doing well in its business, and they have a positive outlook for the future. In Q2 FY 24, they introduced 34 products in the US market, including nine completely new ones. They plan to launch more than 60 products in the US and are keeping an eye on drug shortages, especially in oncology. Their core markets and India are performing well, and they are working on making their operations more efficient to increase profits.
They also acquired Cenexi, which has helped them expand in Europe. This acquisition contributed to their finances, even though there were some challenges due to a shutdown in France during the summer. Gland Pharma sees many benefits from Cenexi, such as access to new technologies, markets, cost savings, and moving some manufacturing to India. They expect Cenexi’s profits to improve in a few quarters, although it might take some time to reach high margins.
Considering all this, we recommend buying Gland Pharma at the current price of Rs 1594, with a target of Rs 1725 and a stop loss of Rs 1543 in the short term.
IRFC
IRFC (Indian Railway Finance Corporation) plays a crucial role in helping Indian Railways with their plans to develop railway infrastructure. It’s like a financial arm that supports Indian Railways by providing the necessary funds for various projects, including buying trains and improving railway infrastructure. The government is putting a lot of emphasis on developing infrastructure in the country, and the railway sector is getting more money for its projects.
In the latest budget for FY 2023-24, Indian Railways received a significant allocation of Rs 2.4 lakh crores, which is the highest ever. This money will be used for things like building new railway lines, expanding tracks, making railways more eco-friendly, and other improvements. IRFC helps fund these projects by lending money to Indian Railways.
We suggest buying IRFC at the current price of Rs 73.40, with a target price of Rs 79.90 and a stop loss at Rs 70.85 in the short term.
L G Balakrishnan Bros Ltd.
L G Balakrishnan Bros Ltd. (LGBB) is a major player in the 2-wheeler industry, and most of its revenue comes from this segment. In the first half of FY 24, the 2-wheeler segment saw a 7% year-on-year growth, although it hasn’t reached its peak levels from H1 FY19 yet. However, recent data in October showed a strong double-digit growth in domestic 2-wheeler sales, thanks to the festive season and signs of economic recovery in rural areas. This is a positive sign for LGBB’s future prospects.
The company is also expanding its manufacturing capabilities by building a new plant for making power transmission chains and related products for cars and industries. This new plant is set to start commercial production in Q4 FY24 and is expected to generate around Rs 200 crores in annual turnover by FY25. Despite a modest 3.8% YoY revenue growth in Q2 FY24, the company maintains a 10% revenue growth target and a 19% margin target.
In summary, we recommend buying LGBB at the current price of Rs 1100, with a target of Rs 1195 and a stop loss at Rs 1058 in the short term.
Sanofi India
Sanofi India has decided to split its consumer healthcare business into a separate company called Sanofi Consumer Healthcare India Limited. This move will allow Sanofi India to concentrate on specialised medical areas and bring its global medical innovations to India. It should also create more value for the company’s shareholders and improve its overall performance. By separating the pharmaceutical and consumer healthcare businesses, each part can have its own dedicated management and focus on its unique growth opportunities.
Sanofi India’s growth is expected to come from increased sales of insulin and strong sales of key brands. They are also working on reducing costs to improve their profitability. One of their important products, Lantus (insulin glargine), faced a price drop due to government regulations, but it won’t impact their profits significantly because they import it from their parent company at fair prices. Overall, Sanofi India’s revenue is likely to grow in FY 24 as they expand their insulin products and introduce new innovative ones.
To sum it up, we recommend buying Sanofi India at the current price of Rs 7655, with a target of Rs 8297 and a stop loss at Rs 7487 in the short term.
Satin Creditcare Network
Satin Creditcare Network has made improvements in how it manages its loans and customers. They’ve focused on collecting payments, making sure customers are reliable, and becoming more efficient. This effort has paid off, with a high collection rate of 99.6% in Q1 FY24. Their loan quality is also better compared to many other similar companies. Loans made after July 2021 have very low delinquency rates, which is better than the industry average. Their bad loans (GNPA) decreased from 3.3% in Q4 FY23 to 2.5% in Q1 FY24. They have set aside enough money for potential losses, which is a good sign. The company expects its loan quality to remain stable.
Satin Creditcare Network plans to grow its assets under management (AUM) by 25% in FY 24. They will focus on housing and the MSME segment to achieve this growth. Their extensive network allows them to reach more customers, and they believe the microfinance industry will continue to grow, with NBFC MFIs like them playing a significant role. Given their experience and presence, they are well-positioned to take advantage of this opportunity.
In summary, we recommend buying Satin Creditcare Network at the current price of Rs 256, with a target of Rs 279 and a stop loss at Rs 247 in the short term.
Torrent Power
Torrent Power has a strong position in the power distribution business. They are the exclusive licensee for power distribution in several cities like Ahmedabad, Surat, Gandhinagar, and others. They also serve as a power distribution franchisee for additional areas. With the recent addition of DNDD, they now provide power to over 4 million customers in various sectors. Their diverse customer base, including urban areas, ensures they can efficiently collect payments from nearly all their customers.
Torrent Power is also focused on expanding its clean energy portfolio. They plan to acquire and develop renewable energy projects like solar, wind, and hydroelectricity. They are exploring opportunities in green hydrogen, a promising new sector. Through these efforts, they have a total generation capacity of around 4.1 GW, mainly from clean sources like gas and renewables.
In summary, we recommend buying Torrent Power at the current price of Rs 750, with a target of Rs 818 and a stop loss at Rs 720 in the short term.
Read more about the other results declared in Q4
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