Stocks to buy: Maruti Suzuki, GHCL among four stock picks by StoxBox for near to mid-term amid market volatility

India’s benchmark indices, the Sensex and Nifty 50, traded slightly lower on Friday due to selling pressure in sectors including banking, automotive, real estate, and oil & gas. Broader markets also saw declines, with the midcap and smallcap indices trading over half a percent down.

Despite positive global cues following a 25 basis points rate cut by the US Federal Reserve and the recent election victory of Republican Donald Trump in the US elections 2024, which boosted Wall Street indices, sustained selling by foreign institutional investors (FIIs) in the Indian equity markets has driven a sharp correction in domestic indices.

StoxBox has come out with its top picks in the Indian stock market, spotlighting promising stocks with growth potential despite current economic challenges.

These four stocks to buy include Maruti Suzuki India, Godrej Agrovet, GHCL and Chalet Hotels.

“This selection highlights companies across various sectors that demonstrate resilience and strategic initiatives aimed at bolstering future performance,” StoxBox said.

Here are top four stocks to buy:

Maruti Suzuki India | Buy | Target Price: ₹11,666 – 12,000

StoxBox recommends buying Maruti Suzuki India Ltd. (MSIL) at current market price, with a target price of ₹11,666 to ₹12,000. The company reported a mixed Q2FY25 performance, with a 0.2% YoY revenue growth to ₹35,589.1 crore but missed market expectations. Domestic sales fell 3.9% YoY, while exports grew 12.1%. PAT declined 17.4% YoY due to higher discounts and commodity costs.

However, Maruti Suzuki is optimistic about festive sales, with a 14% YoY growth in retail sales, and is focusing on expanding its EV and CNG offerings, including exports to Japan, StoxBox said.

Godrej Agrovet | Buy | Target Price: ₹750

Godrej Agrovet’s Q2FY25 results show steady performance, with revenue at ₹2,448.8 crore, down 4.8% YoY and EBITDA up 10.9% YoY to ₹223.4 crore due to margin gains. Despite a 7.8% YoY drop in net profit to ₹95.8 crore, the Animal Feed and Oil Palm segments saw margin improvements, while the Dairy segment grew 3% YoY on value-added products. A stronger H2 FY25 is anticipated, supporting a cautiously optimistic outlook, said the brokerage firm.

GHCL | Buy | Target Price: ₹660 – 680

StoxBox picks GHCL with the current market price and a target price of ₹610 in the near term (2 days), with potential upside to ₹660-680 in the coming months.

GHCL demonstrates strong investment potential, with a 51 bps QoQ improvement in EBITDA margin (26.6%) and an 8.4% YoY increase in net profit to ₹154.8 crore. Despite challenges in the global soda ash market, domestic demand, particularly driven by solar glass production, remains positive. Additionally, GHCL’s ₹200-250 crore investment in greenfield projects is expected to contribute to earnings from FY26, StoxBox said.

Chalet Hotels | Buy | Target Price: ₹905

Chalet Hotels delivered a strong Q2FY25 performance, according to StoxBox. It has a target price of ₹905 apiece for Chalet Hotels shares.

Key highlights include a 20% year-over-year (YoY) growth in total income to ₹377 crore and an 18% increase in hospitality revenue to ₹335.2 crore, driven by a steady occupancy rate of 74% and improved revenue per available room (RevPAR) of ₹7,756.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.