3 stocks to buy now when markets have fallen sharply from highs


ultra-technological cement

Ultratech Company is the largest cement producer in the country. In fact, Ultratech has 22 integrated manufacturing units, 27 grinding units, a Clinkerization unit and 8 Bulk Packaging Terminals. In the white cement segment, UltraTech is launched under the Birla White brand. Shares of Ultratech have fallen from levels of Rs 8,269 to current levels of Rs 6,350. The company reported a dovish set of numbers for the quarter under review with domestic gray cement volume flat y-o-y, white cement volume down by 5% year-on-year.

Operating income improved by 9.5% year-on-year to Rs 157,673 crore on a consolidated basis. The company reported volume growth in the Central and South region and volume decline in the East and West regions (geographically). The company is witnessing the demand for various infrastructure constructions, such as the construction of highways, railways, subways, irrigation projects, airports, and the urban housing market. On average, capacity utilization for the quarter was 90%. As infrastructure development and construction take place, the company is likely to benefit from the same, being the largest player in the country.

Ultratech Cement – ​​Buy with a target price of Rs 7600

Ultratech Cement – ​​Buy with a target price of Rs 7600

The brokerage firm, Anand Rathi, continues to be positive about the company thanks to its strong business model, high operating margins, improved balance sheet, increased retail market share, brand transition, optimization of the acquired business and capacity expansion.

“We maintain our BUY rating on the stock, however, with a lower price target of Rs 7,600 per share due to slower growth in demand, rising interest rates and fuel and power costs,” the broker said.

The company acquired a majority stake in RAK White Cement, the market leader in the GCC region with a capacity of 0.9 metric tons of clinker and 0.6 metric tons of white cement. The company has synergies with Birla White and will enhance its leadership in the market. This additional capacity will also help the company meet growing demand in the Indian markets. The company will now suspend the white cement capacity expansion plan in India. Investors who want to buy the shares will now have to pay a price of Rs 6,350.

Buy Dalmia Bharat shares with a target price of Rs 1851

Buy Dalmia Bharat shares with a target price of Rs 1851

Brokerage firm Anand Rathi sees several reasons to buy Dalmia Bharat shares. The company’s operating performance was affected by the considerable increase in costs. Aiming to reach a cement capacity of 48.5 million tons by fiscal year 2024, the company started its 2.9 million tonne Murli cement capacity in Maharashtra. And it is also targeting a 25% share of green power by FY23. Despite ongoing capex, the company became net debt free (net debt/EBITDA: -0.6x as of March 31, 2020).

“The huge price increases during the quarter helped to restore its revenue growth. Its fourth quarter revenue grew 7.3% y/y, but its EBITDA decreased 11% y/y due to high coke prices sale of a non-core asset, its net debt-free position and a definitive capital allocation policy would strengthen its balance sheet The Murli plant was commissioned Jan 22 We hold a buy, with a lower target of Rs 1,851 (previously Rs 2,411),” Anand Rathi has said.

Max Financial Services – Buy with a target price of Rs 950

Max Financial Services – Buy with a target price of Rs 950

Max Financial Services owns and actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance.

Max Financial Services posted strong growth in VNB even as APE fell 4% year-on-year. Within segments, Protection/Non-PAR grew strongly while ULIP/PAR declined. As a result, the protection mix increased in 4QFY22. On the distribution front, both bancassurance channels and their own were witnessing the pressure.

“VNB margin improved to 31.9% in 4QFY22 (from 24.9% in 3QFY22), driven by better pricing and a higher Protection/Non-PAR business mix with management guidance to spread to remain in 25-26% range We expect VNB spread to hold at 26-27% and estimate 20% APE CAGR during FY22-24 This would imply 19% VNB CAGR during FY22-24E Hold buy in the stock with a price target of Rs 950 (based on 2.5x FY24E EV and a 20% holding discount),” the brokerage said. Shares of Max Financial Services were last traded at Rs 729 on the National Stock Exchange. The stock is a good buy now if you are a long-term investor.

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