HDFC Securities Retail Research Desk is bullish on Aavas Financiers, Kansai Nerolac Paints and Bosch and advises to buy these stocks for a time horizon of two quarters.

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The brokerage said these stocks can be bought at the current market price and at further dips as they may provide better returns due to strong fundamentals, cheap valuations and robust performance.

Aavas Financiers | Buy | TP: Rs 2,555

The stock is currently trading at a premium valuation, which is mainly driven by granular retail book, industry leading growth, best in-class asset quality, and superior return ratios, it said.

"We believe that investors can buy Aavas Financiers Ltd on dips at Rs 2,163 and add more at Rs 1,965 for the base case fair value of Rs 2,361 and for the bull case fair value of Rs 2,555 over the next two quarters," HDFC Securities said.

Kansai Nerolac Paints | Buy | TP: Rs 645

Price hikes, along with cost rationalisation, will stabilise the gross margins and better operating leverage on account of higher utilisations will enhance the operating margins going ahead, said HDFC Securities.

"We recommend a 'buy' on the stock at Rs 531-537 band and add further on dips to Rs 472-478 band for a base case target of Rs 599 and a bull case target of Rs 645."

Bosch | Buy | TP: Rs 14,795

Valuation of the company has corrected over the past few years due to muted bottomline performance. However, with the revival in the automobile industry, the brokerage house believes, the company would be able to pass on the higher raw material costs.

"Investors can buy the stock on to Rs 12,740-12,770 band and add further in Rs 11,720-11,750 band for a base case fair value of Rs 14,030 and bull case fair value is Rs 14,795 in the next two quarters," it said.

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