Nirmal Bang Picks 2 Mid, Large Cap Stocks To Buy As Bulls Gain Steam, 3 Yrs Return 272%

Nirmal Bang has picked 2 mid-cap and large-cap stocks as both the stocks are showing potential of an upward rally. These two stocks are mid cap cement stock Dalmia Bharat Ltd and large cap FMCG stock, Tata Consumer Products Ltd. If you buy both the stocks now, you can get potential return of up to 27%. You can also get dividend income as well as Tata Consumer recommended a final dividend of Rs. 8.45/- per equity share of Re. 1 each (845%). Check details below:

1. Buy Dalmia Bharat: The analyst has assigned buy call to mid-cap cement sector stock, Dalmia Bharat with target price of Rs 2510 per share. Current market price of Dalmia Bharat is Rs 1976.35 per share. If you buy Dalmia Bharat share now, you can get likely return of 27%. The stock's 52-week high price is Rs 2168.00 per share and 52-week low price is Rs 1212.60 per share, respectively. The company has a market capitalisation of Rs 37,052.68 crore.

The stock gave return of 28% in last 6-months, 28% return again in last 1-year, 30% return in last 2-years, and 272% return in last 3-years.

According to Nirmal Bang, "On an overall basis we like the company's strong brand recall and superior balance sheet despite aggressive expansion plans. The stock is currently trading at 11x FY24E EV/EBITDA vs its 5-year average of 13x. We value Dalmia at 11x FY25E EV/EBITDA to arrive at a target price (TP) of Rs2,510."

2. Buy Tata Consumer Products: Current market price of Tata Consumer Products Ltd is Rs 760.50 per share. Nirmal Bang has assigned buy call with target price of Rs 860 per share. If you buy Tata Consumer Products stock now, you can get likely return of 13%. The stock's 52-week high price is Rs 861.35 per share and 52-week low price is Rs 685.00 per share, respectively. The company has a market capitalisation of Rs 70,651.34 crore.

The stock gave return of 12% in last 2-years, 121% return in last 3-years, and 9% return in last 1-month. It declined 6% in last 1-year.

The Board has recommended a final dividend of Rs. 8.45/- per equity share of Re. 1 each (845%), for the financial year 2022-23.

According to the analyst, "The stock has seen ~11% correction in the last two months and hence we upgrade our recommendation to BUY with an unchanged target price (TP) of Rs860, valuing it at ~45x on Sept'24E EPS."

Disclaimer: The stocks have been picked from the brokerage report of Nirmal Bang. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.