The Nifty 50 Index recently has corrected over 12% from its high of 26,200 in September 2024. Because of consistent FII selling, the rising US dollar, below estimate results from Indian companies, and Uncertainty about interest rate cuts.
This correction has led several stocks to be significantly lower from their 52-week highs and are available at attractive valuations. Brokerages have given buy ratings to some high-quality stocks that are included in the index.
Listed below are the 3 Nifty 50 Stocks :
HINDUSTAN UNILEVER
Hindustan Unilever Limited (HUL) is India’s largest Fast-Moving Consumer Goods company with its products touching the lives of nine out of ten households in the country. The Company is in the fast-moving consumer goods (FMCG) business comprising primarily four business segments such as home care, personal care, foods, and refreshments.
With a market capitalization of ₹5,56,594 crore, the Stock opened at ₹2401 per share from Monday’s closing price of ₹2392, Over the past year, the Stock has given a return of negative 2%, and it has corrected 21% from its high of ₹3028.
In Q3FY25, the company reported a Revenue of ₹15,818 Cr, up 1.61% from last year’s revenue of ₹ 15,567 Cr. The company reported a Net profit of ₹2,989Cr in the latest quarter up 19.17% compared to ₹2,508Cr in the same period last year and the NPM margin stood at 19.48 compared to 16.59% last year.
Motilal Oswal, one of India’s well-known brokerages in India, gave a ‘Buy” call on the FMCG stock with a target price of ₹2850 indicating a potential upside of 19.14% from yesterday’s closing price.
The rationale given by the brokerage is that the company has continued to strengthen its brand, and distribution network, thereby remaining ahead of its peers. Additionally, with its analytics and R&D initiatives (much ahead of peers) in recent years, HUL. ensures it remains adaptive in a quickly changing environment. The company also commands a strong leadership position in Home Care, which could further benefit the company if macros improve.
ULTRA TECH CEMENT
UltraTech Cement Limited is the largest manufacturer of Grey Cement, Ready Mix Concrete (RMC), and White Cement in India. It is also one of the leading cement producers globally. With a consolidated Grey Cement Capacity of 132.4 MTPA, it is the third largest cement producer in the world excluding China.
With a market capitalization of ₹3,25,874 Crores, the Stock opened at ₹11,251 per share from Monday’s closing price of ₹11,239, Over the past year, the Stock has given a return of 10%, and it has corrected 7.44% from its high of ₹12,143.
In Q3FY25, the company reported a Revenue of ₹17,193.33 Cr, up 2.70% from last year’s revenue of ₹16,739.97 Cr, the company reported a Net profit of ₹1473.51 Cr in the latest quarter down 20.85% compared to ₹ 1,774.78 Cr in the same period last year and the NPM margin stood at 8.78% compared to 10.49% last year.
HDFC Securities, one of India’s well-known brokerages in India, gave a ‘Buy” call on the Cement stock with a target price of ₹ 12,100 indicating a potential upside of 7.66% from Yestarday’s closing price.
The rationale given by the brokerage is that the company In the Previous quarter, UltraTech delivered a staggering 12% volume growth, and all-round cost reduction QoQ drove unit EBITDA up by Rs 220/MT to Rs 944/MT. The brokerage estimates the consolidation of India Cements and Kesoram to drive volume growth in FY26/27E.
HDFC BANK
HDFC Bank Limited is a publicly held banking company engaged in providing a range of banking and financial services including retail banking, wholesale banking, and treasury operations. Headquartered in Mumbai, HDFC Bank is a new-generation private sector bank providing a wide range of banking services covering commercial and investment banking on the wholesale side and transactional/branch banking on the retail side.
With a market capitalization of ₹12,61,627 Crores, the Stock opened at ₹1647 per share from Monday’s closing price of ₹1629, Over the past year the Stock has given a return of 12.09%, and it has corrected 13% from its high of ₹1880.
In Q3FY25, the company reported a Revenue of ₹85,040 Cr, up 9.36 % from last year’s revenue of ₹78,008 Cr, the company reported a Net profit of ₹18,340 Cr in the latest quarter up 3.73% compared to ₹17,718 Cr in the same period last year and the NPM margin stood at 22.02% compared to 23.20% last year. Gross NPA stood at 1.4% compared to 1.3% and Net NPA stood at 0.5% compared to 1.4% for the same period.
Motilal Oswal, one of India’s well-known brokerages in India, gave a ‘Buy” call on the Private Bank stock with a target price of ₹2050 indicating a potential upside of 25.84% from yesterday’s closing price.
The rationale given by the brokerage is that the deposit growth stood strong for the company and the asset quality of the bank improved, With the bank’s strategy to reduce the Cash – Deposit ratio at an accelerated pace while advances were muted because of that. Given the bank’s focus on reducing the CD ratio at an accelerated rate, Motilal Oswal Financial Services factored in a moderation in loan growth in FY25/FY26 to 5%/10%.
Written by Abhishek Das
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