Best 3 Retail Stocks To Buy For Upto Sharp 90% Return, Suggests This Top Brokerage

Nifty and Sensex both are bearish today, as the US dollar index has been gaining this week, Investors are also fearing that the equity markets can see a further outflow of assets. However, brokerage firm Emkay Global has retained buy ratings for these stocks: TCNS Clothing Co Ltd., Titan Company, Devyani International Ltd. for good returns, watching their potential.

Stocks To Buy: Current market price and Target price

The current market price of TCNS Clothing Co Ltd. stood at Rs. 542/ share, and Emkay Global has estimated a target price for the stock at Rs. 1,030/share. In the past one year the company's stock price has fallen by 10%, in the past 6 months the stock price has fallen by 28.62%. Its market capitalization is Rs. 33 bn.

The current market price of Titan Company Ltd. stood at Rs. 2,128/ share, and Emkay Global has estimated a target price for the stock at Rs. 2,530/share. In the past one year the company's stock price has gained by 24.08%, in the past 6 months the stock price has fallen by 18.33%. Its market capitalization is Rs. 1,889 bn.

The current market price of Devyani International Ltd. stood at Rs. 163/ share, and Emkay Global has estimated a target price for the stock at Rs. 210/share. In the past one year the company's stock price has surged by 32.86%, in the past 6 months the stock price has fallen by 12.22%. Its market capitalization is Rs. 197 bn.

According to Emkay Global

Commenting on these top stocks of the retail sector, Emkay Global stated, "After two years of partial and full lockdowns, Q1 was the first quarter to see normal operations. And, this should be visible in the performance of discretionary names. We expect most covered names to report strong 3-Y revenue CAGRs in the range of 9-22%. Although commodities like palm oil, cotton and PET (crude) have started to soften since Q1-end, margin pressures remained throughout the first quarter. As a result, companies implemented price hikes in the range of 5-15% YoY, which should help them partially offset the impact in Q1. We expect strong revenue momentum to continue for TITAN. For TITAN, while near-term volatility will be there due to the recent customs duty increases, strong Q1 sales, do present a case for consensus upgrades. However, TCNS should see around 400bps margin decline on negative operating leverage."

Disclaimer

The above stocks were picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.