It is the last day of January and for many, it’s ‘Salary Day’. With a paycheck in hand, existing investors look to diversify their portfolios while new investors enter the market to benefit from the rapid growth and exponential returns on their investments.
Out of the multiple categories of stocks, Blue-chip stocks are considered a safer choice as they typically have solid balance sheets, steady cash flows, and proven business models. Along with this, the stock prices increase steadily and give significant returns.
On that note, here are 2 bluechip stocks recommended by analysts for an upside of up to 36%:
Hindustan Unilever Limited
The shares of FMCG giant, Hindustan Unilever, were trading marginally higher in green at Rs 2,571 levels till the afternoon on Tuesday. In the past six months, the stock has been volatile and traded flat. However, in the span of a year, it has gained 14 percent outperforming the Nifty 50 index which has gained only 2 percent in the period.
Hindustan Unilever Limited, a subsidiary of Unilever, is a consumer goods company that has a product portfolio of foods, beverages, cleaning agents, personal care products, water purifiers, and other fast-moving consumer goods.
In Q3FY23, the company reported a total revenue of Rs 15,597, a growth of 16 percent Year on Year from Rs 13,439 Crore. Their net profit in the period stood at Rs 2,481 Crore which grew marginally from Rs 2,300 Crore in Q3FY22.
Domestic brokerage Edelweiss is bullish on the blue-chip stock and has assigned a target of Rs 3,365 per share which represents an upside of 31% from the current levels.
“Royalty mars a splendid show. Royalty increase is a negative but coming at a time when the worst of RM Inflation is behind. RCS’ revised cost, 3.45% of turnover, comprises 1.95% towards royalty for trademark/tech and 1.5% towards central services from Unilever,” Edelweiss highlighted.
Titan Company Limited
Titan Company, a Tata group company, was trading 2 percent higher at Rs 2,378 levels in the afternoon on Tuesday. The blue-chip stock has beaten the nifty 50 as it has delivered 67 percent in 2 years whereas the Nifty 50 has gained 30 percent in the period.
Titan Company Limited, part of the Tata group, is an Indian company that mainly manufactures fashion accessories such as jewellery, watches, and eyewear. It stands as the largest branded jewellery maker in India.
The company is set to release its Q3 results on February 2nd, 2023. In Q2FY23, the company reported a total revenue of Rs 9,163 Crore and a net profit of Rs 835 Crore.
ICICI Direct is bullish on the blue-chip stock and has a ‘Buy’ tag with a target of Rs 3,240 per share which represents an upside of 36% from the current levels.
“A robust balance sheet and asset-light distribution model have enabled it to outpace peers in terms of store addition. Aspires to grow jewellery revenues by 2.5x by FY27 (implied CAGR: 20%). Gradual recovery in studded ratio to aid gross margins, going forward,” the brokerage highlighted in its note.
Written by Anoushka Roy
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