Stocks To 'Hold, Accumulate' On Ganesh Chaturthi As Recommended By PL

Leading brokerage firm Prabhudas Lilladher has assigned hold and accumulate call to 2 stocks in its latest report dated September 18, 2023. These two stocks are Cummins India (hold call) and Praj Industries (Accumulate). Both the stocks operate in Engineering sector. Check details below:

1. Hold Cummins India: Prabhudas Lilladher has recommended investors to hold Cummins India share with target price of Rs 1788 per share. According to Amit Anwani, Research Analyst, Prabhudas Lilladher Pvt Ltd, "Cummins' outlook remains intact given 1) strong domestic demand in power gen across sectors 2) improving margin profile, and 3) ample room for growth in the distribution business. We estimate FY23-25E Revenue/ PAT CAGR of 12%/11.4%. The stock is trading at PE of 38.1x/33.8x FY24/25E. Maintain 'Hold' rating on stock with TP of Rs1,788 (same as earlier), valuing it at 35x on FY25E EPS (same as earlier)."

Current market price of Cummins India stock, operating in Engineering sector, is Rs 1726.00 per share with intraday fall of 1.19%. Its 52-week high price is Rs 1981.15 per share and 52-week low price is Rs 1125.15 per share, respectively. The company has a market capitalisation of Rs 47,844.72 crore.

Cummins India shares offered shareholders return of 25% YTD, soared 45% in last 1-year, gained 71% in last 2-years, and surged 258% in last 3-years. In last 10-years, Cummins India stock delivered 324% return when Sensex gained 238% in comparison.

Formed in 1962, the largest entity of Cummins in India, Cummins India Limited is the country's leading manufacturer of diesel and natural gas engines. One of the seven legal entities of the Cummins Group in India, Cummins India Limited comprises three business units - Engine, Power Systems, and Distribution, according to its official website.

2. Accumulate Praj Industries: Current market price of Praj Industries share is Rs 581.75 per share with intraday fall of 0.96%. Prabhudas Lilladher has assigned accumulate call with target price of Rs 618 per share.

According to Amit Anwani - Research Analyst, Prabhudas Lilladher Pvt Ltd, "We remain positive on PRJ in long run, given 1) its strong leadership in domestic ethanol plant (~50-55% market share), 2) increasing traction from CBG plants, 3) focus on future-ready technologies like 2G plants, CBG, ECTA, SAF etc. 4) healthy outlook for engineering segment from exports market and 5) upcoming opportunity from SAF post FY27. The stock is trading at PE of 35.4x/31.1x on FY24/25E. We revise our TP to Rs618 (Rs475 earlier), valuing it at PE of 33x FY25E (27x FY25 earlier), factoring in improved revenue visibility, amidst opportunities arising from CBG and Sustainable Aviation Fuel (SAF) in long run. Downgrade to 'Accumulate'.

The stock's 52-week high price is Rs 610.00 per share and 52-week low price is Rs 299.00 per share, respectively. Its market capitalisation is Rs 10,687.51 crore. Praj Industries shares rallied 73% in last 6-months, gained 62% YTD, soared 70% in last 2-years, and surged 687% in last 3-years. Praj Industries stock rallied 466% in last 5-years. In last 10-years, Praj Industries shares jumped 1424%.

Praj is a leading company offering solutions for bioenergy, high purity water, critical process equipment, breweries and industrial wastewater treatment. Headquartered in Pune, India, Praj has spread its presence across the globe with 1000++ References in 100+ countries across all 5 continents, according to its official website.

Disclaimer: The stocks have been picked from the brokerage report of Prabhudas Lilladher. 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.