‘Buy’ Star Cement, La Opala, Can Fin Homes, ‘sell’ Colgate Palmolive: Centrum Broking

New Delhi, Jan 28 (SocialNews.XYZ) Brokerage firm Centrum Broking has given a 'buy' call to potential investors for shares of Star Cement, La Opala RG, and Can Fin Homes.

The cement maker Star Cement's volumes had seen an uptick with ramping up of two metric tonnes new grinding unit at West Bengal's Siliguri.

Besides, capital expenditure plan of Rs 17-18 billion in next three years may augur for the company, it added.

The brokerage recommended the investors to 'buy' Star Cement with a target price of Rs 118. It is currently trading at Rs 94.

For tableware maker La Opala RG, the target price is kept at Rs 520, against its current price of around Rs 396.

"Capacity utilisation at both the plants were at 100 per cent. Demand was led by higher spend by consumers on discretionary items and a very strong marriage season," the brokerage said.

Demand outlook for Q4FY22 continues to remains strong despite some sales being impacted in early January due to Omicron.

"Cups and saucers now contributing 25 per cent to the company's top line. Demand is led by strong marriage season (30 per cent demand for La Opala comes from gifting on occasions) and higher spends by consumers on discretionary items. Demand was largely led by domestic markets."

Housing finance company Can Fin Homes shares are seen heading towards Rs 770, against its present price of Rs 617.

"Guidance for Q4FY22 disbursal is better assuming no Covid impact. Hence we raise our loan growth estimate for FY22 from 16 per cent to 19 per cent."

Further, the brokerage has maintained 'sell' call for oral and personal care products maker Colgate Palmolive (India) due to "tepid" revenue growth. "Despite a weak base of last year, oral care category growth seems to have moderated for Colgate owing to rising competitive intensity," the brokerage house said.

Source: IANS