Stocks To Buy: 54% return explosion! Brokerage said - 'Buy these two stocks, don't miss the opportunity'

Stocks To Buy: Trading was closed on Wednesday with a fall in the stock market. In such a situation, the biggest question in the minds of investors is which stocks can give them good earnings. If we talk about agrochemical companies, then according to Moneycontrol, brokerage company Anand Rathi has advised to buy two of these stocks. These are Sharda Cropchem and Dhanuka Agritech.

In one of these, there could be an increase of up to 54 percent. Both companies have just declared their September quarter results. Sharda has performed well while Dhanuka has faced weather and operational issues. Still the brokerage has confidence in both.

This is the target price

First of all, if we talk about Sharda Cropchem, this company has shown an annual increase of 35 percent in revenue in the second quarter. Meaning, if compared with the same quarter of last year, it has been quite good. The reason is that the sales of products have increased, especially in America and Europe the demand has been strong. The company has also increased its share in NAFTA. The stock in the warehouses has reduced and the demand has been good, which has boosted growth. According to company officials, prices have now stabilized downwards and may increase soon. The company’s sales will increase in new markets. If the tension of trade dispute between America and China has reduced then the growth of the company will remain stable.

Anand Rathi has given buy rating on Sharda and has kept the target price at Rs 1250. On Tuesday, this stock closed around Rs 811, with a slight decline. This means that if the target is reached then a return of about 54 percent can be achieved. This is much above the current price. The company’s business is of pesticides and crop protection medicines, which are essential for farmers.

Brokerage advised to buy this stock also

Dhanuka Agritech’s results were a bit weak. Revenue fell 9 percent. EBITDA i.e. earning margin decreased by 14 percent and profit by 20 percent. The main reason is excessive rainfall in Kharif season. Due to this the sales of products reduced. Despite good product mix, expenses remained high and margin remained at 22.9 percent. Herbicide sales decreased and Dahej plant incurred a loss of Rs 4.6 crore. The company changed next year’s growth forecast from high double digit to flat. Meaning no much increase is expected. Still, Anand Rathi has advised to buy on Dhanuka also. The target price was earlier Rs 1900, now it has been changed to Rs 1530. The stock closed at Rs 1311 on Tuesday. That means an increase of up to 16.6 percent is possible here. The company makes crop protection products and is good in the long run.

Both the companies are in the agrochemical sector, which depends on farming. Sharda focuses more on foreign markets while Dhanuka is strong in the domestic market. The brokerage feels that the challenges will be overcome and stocks will go up. This advice is the brokerage’s own opinion. Before investing, do your own research or ask a certified expert.

(Disclaimer: This news has been published for informational purposes only. If you want to invest money in any of these shares, then first consult a certified investment advisor. StuffUnknownwill not be responsible for any profit or loss of yours.)