Swaraj Engines, Chola Finance Holdings and IIFL Wealth are stocks to buy, says Ashish Kukreja

Swaraj Engines, Chola Finance Holdings and IIFL Wealth are stocks to buy, says Ashish Kukreja



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In a chat with Zee Business Managing Editor Anil Singhvi, market analyst Ashish Kukreja highlighted some sectors that are in focus along with the stocks that are expected to do well in the long term, positional medium term and short term. Know his top picks today

Long Term Pick: Swaraj Engines

Kukreja has put a buy tag on Swaraj Engines stock as the company has one of the strongest Balance sheets. Swaraj Engines is one of the captive players for Mahindra Tractors. Rural themes or Agri themes in current economic conditions or scenarios will definitely do very well. Swaraj Engines is one of the top beneficiaries of this theme. The company is capital efficient, debt free and an excellent cash Generation Company. Swaraj Engines has a good history of paying dividends. The company is going to increase the capacity to 1.5 lk units from 15000 units via internal accruals and there will be no borrowing to increase capacities. This indicates that Swaraj Engines is fundamentally extremely strong. Investors should buy this stock on every dip and eventually the stock is moving towards the target of Rs 1800 – Rs 2000 in next 9 to 12 months.  

Positional Term Pick: Chola Financial Holdings

Chola Financial Holdings will get a huge benefit from the CV cycle revival. This is an extremely well-run financial company. The company will also benefit from the Motor Vehicle act going forward. Chola Financial Holdings is available at a discounted valuation at current market price. The target for this stock is Rs 650 to Rs 700 in next 3 to 6 months. Investors willing to hold for 1 or 2 years can see a target of Rs 900 on the stock. Chola Financial Holdings has a stake in the group’s general Insurance Business indicating further that the stock is undervalued.

Short Term Pick: IIFL Wealth

The AMC sector will continue to see growth of 18{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} to 20{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}. IIFL Wealth stock has not moved in the current market rally and it seems that it can move 15{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}-20{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} any day from here. The company is an amazing proxy play. Recurring income model of the company gives a lot of comfort to their investors. The stock looks undervalued at current levels and can generate good returns from current levels. Target on IIFL Wealth is Rs 1400 to Rs 1500 in short term and Rs 1600 – Rs 1800 in long term. AUM Growth across the board will benefit companies like IIFL Wealth.

 

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