Review of Casting & Forging Sector stocks. Strong Buy stocks for long term.
|Stocks||Price||Trailing PE||Price to Book|
|Invest & Precision||300||17.8||2.25||Buy|
AIA Engg Share price: 1660.
Stock is range bound 1450-1800. Good to see stock being bullish on daily charts even during market volatility. Long term support is at 1250-1300, where we find the stock attractive for long term. For short term, on can buy the stock on dips towards 1450-1500 for a target of 1750 and 1900. We see the stock trade at 2500 in a year.
Alicon Castalloy. Share price 615. Target 720. SL 550.
Stock is good fundamentally and can test 660 and 720. It has strong support at 550. We have a hold recommendation in Alicon Castalloy.
Investment & Precision Casting: Share price: 300. Target 350 and 400.
Stock is good fundamentally and is down technically. Support is seen at 260-270 on weekly charts and resistance is seen at 350 on the upside due to daily charts 200 EMA.
We recommend to add stock on dips towards 260-275. Target 350 and 400 in 6-12 month and less than 18 months respectively. Stock trades at 2.25 x book and looks attractive for both short term and long term. Stock has also have a good quarterly result. (3%: Dont add more than 3% of your portfolio.)
MM Forging share price 630. Target 880. SL 530.
Stock is fundamentally strong and technically strong. We see the stock at 720 in 3-6 months and 880 in less than a year. Mutual funds are aggressively adding the stock to their portfolio in recent quarters. Stock has good Margin % and ROE% and a good earning yield. Stock is consolidating at a Price to Book of 4. We see the stock rally towards 880 in less than a year. Time is very conservatively stated. (5-6%: Stock can be added upto 5-6% of your portfolio.)
National Fitting Share price: 163. Target 215. SL 135.
Stock is Fundamentally strong with good Margin%, ROE% and ROCE%. Technically stock is taking support at 200 EMA in weekly charts closer to 150-160. Stock faces resistance at 175-185 due to 200 EMA on daily charts. Stock trades at 4x book and has a PE of 16.4. We see the stock rally towards 215 and 250 as it moves above 190 in 6 months and 1 year respectively. We have a SL of 140. (3%: Stock can be added only upto 3% of your portfolio.)
Ramkrishna Forge share price: 520. Target 630 and 720. SL 450.
Stock is Fundamentally good with good Margin% and ROE%. Stock trades at a PE of 13.8 and Price to Book of 2.24. Valuations are attractive. Mutual funds are increasing stock to their portfolio in recent quarters. Technically stock is finding support at 200 EMA of weekly charts and shall face resistance at 550-570 on upside due to 200 EMA of daily charts. We see the stock go past the resistance and hit our target of 720 in less than a year. (4%: Stock can be added upto 4% of your portfolio.)
We like both Pradeep metals and Nelcast. Pradeep metals being low market cap stock, we do not recommend to hold more than 1% of your total portfolio value, you can also avoid it. Nelcast is seen Promoters increase the stake and we are happy to hold it for a target of 105 and with a SL of 60.
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