Stock Tips: In the fall of the market, many good stocks are available at cheap prices and according to market experts, good profits can be earned if they invest in them at this time.
Stock Tips: In the fall of the market, many good stocks are available at cheap prices and according to market experts, investing in them at this time can earn good profits. Domestic brokerage firm ICICI Securities has bet on the EPL of the packaging industry. This company manufactures tubes/packets for food items and creams etc. Shares of EPL are at a discount of about 49 percent from the record high of 52 weeks, but market experts are considering it as a golden investment opportunity.
Brokerage firm ICICI Securities has retained its buy rating and has advised investors to invest at Rs 225. Today (BSE) its shares are at a price of Rs 151 i.e. by investing in it, you can earn about 49 percent profit.
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Experts are placing bets because
- In the analysts’ meeting, EPL acknowledged that its profitability was impacted due to near-term challenges but it will achieve the target of double-digit profit growth.
- Keeping in view the challenges, it is revamping its business model and will aggressively raise prices, focus on increasing market share and control costs.
- EPL accounts for about 20 per cent of the global tube market and 33 per cent in the oral care market. However, only 10 percent in beauty and cosmetics and pharma i.e. personal care and 8 percent in food and industrials. In terms of cost, the prices of personal care tubes are about two to three times higher than that of oral care tubes, so the company sees a good opportunity to increase revenue in this. The company believes that while the revenue growth in oral care may remain in the high single digits, the growth in personal care may be in double digits.
- The company is expanding its business, due to which its profits will increase.
- Considering all these factors, analysts at ICICI Securities believe that the era of bad margins of the company is over and now its business will be strong. Because of this, its buy rating has been retained with a target price of Rs 225.
Shares are getting at 49%
The shares of EPL were at a price of Rs 294 last year on July 5, 2021, which is its record price of 52 weeks. However, after this the downward trend continued and a few days ago on June 20, 2022, it slipped to a record low of 52 weeks of Rs 147.50. Right now it is at a price of Rs 151 on the BSE, which is at a discount of about 49 percent from the record high of 52 weeks, that is, the stock is getting cheap for investment. In such a situation, brokerage firm ICICI Securities is looking at a golden opportunity to invest in it. By investing now, a profit of about 49 percent can be earned in this.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)