The best stock ideas to thrive at Samvat 2078


Samvat 2077 broke all records as the benchmarks saw an almost vertical rally during this period, with the Sensex and Nifty hitting several milestones following a cash-driven rally. The reopening of the economy and the rapid vaccination campaign against Covid-19 have also helped the markets to leap forward. During this period, markets have climbed walls of concern like the second wave of Covid and the threat of a third. Samvat 2078 will be a year of balance sheet leverage, led by significant improvement in corporate profitability, Axis Securities said. AND take a look at the best brokerage choices in the new Samvat. Travel and tourism, infra, housing and banking are some of the topics to watch out for, brokerages said.

AXIS TITLES


CAC
CMP (Rs): 2,373.45

Target Price (Rs): 2,570

Potential increase (%): 8.3

The stock currently trades 9 times and 8 times CY2022 and CY2023 EV / Ebitda, which is attractive compared to other larger peers in the industry, Axis Securities said.

ICICI titles
CMP (Rs): 764.55

Target price (Rs): 940

Potential increase (%): 23

The redesigned business model will help ICICI Securities remain a formidable player in a fiercely competitive landscape and also lead to market share gains, Axis Securities said.

Can Fin Houses
CMP (Rs): 636.70

Target price (Rs): 800

Potential increase (%): 25.6

Can Fin’s ability to maintain the quality of its assets even in a challenging environment reflects its fortified business model despite its much smaller portfolio size compared to its peers, Axis Securities said. Can Fin has significant room for expansion in its assessments, he said.

KOTAK SECURITIES

Hindustan Unilever
CMP (Rs): 2,407.35

Target price (Rs): 2,950

Potential increase (%): 22.5

Hindustan Unilever is confident of consistent double-digit earnings per share growth, helped in part by modest margin expansion, Kotak Securities said. Emphasizing its investment rationale for HUL, the company said the company has reiterated the foundations for HUL’s growth and that it is also a leader in the home care segment.

BPCL
CMP (Rs): 421.65

Target price (Rs): 550

Potential increase (%): 30.4

Kotak Securities remains bullish on BPCL noting the expected recovery in refining margins driven by a sustained improvement in global demand. Marketing margins are strong despite high oil prices, and there is potential for valuation from privatization, the brokerage said.

TIC
CMP (Rs): 226.85

Target price (Rs): 275

Potential increase (%): 21.22

The company is bullish on the stock due to inexpensive valuations and a robust dividend yield. The brokerage estimates 30% year-over-year growth in cigarette business volumes and said the cardboard, paper and packaging and agribusiness segment remain strong for ITC.

MOTILAL OSWAL

National Bank of India
CMP (Rs): 515.55

Target price (Rs): 600

Potential increase (%): 16.4

Among state-owned banks, SBI remains the best game on a gradual economic recovery, Motilal Oswal said. It seems well positioned to report a sharp rise in profits, driven by the normalization of the cost of credit, the brokerage said.

Tata Engines
CMP (Rs): 485.7

Target price (Rs): 560

Potential increase (%): 15.4

Motilal Oswal stated that the takeover is underway in all three businesses of Tata Motors. Tata Motors’ passenger vehicle business in India is expected to experience a structural recovery aided by a renewed product portfolio and market share gains, which will put it on track to achieve breakeven free cash flow. here exercise 23.

APL Apollo
CMP (Rs): 831.55

Target price (Rs): 1,075

Potential increase (%): 29.3

The brokerage expects strong volume growth and improved profitability through a growing shift towards structural tubing, a pan-Indian presence, coupled with diverse product offerings and a giant market share .

ICICIdirect

Baroda Bank
CMP (Rs): 99.05

Target price (Rs): 120

Potential increase (%): 21.15

Bank of Baroda’s margins are expected to remain stable despite reduced lending rates due to benign financing costs, less reversals due to moderation of stress build-up from there, ICICIdirect said. A shift to the new tax regime should also boost profitability, the brokerage said

Bata India
CMP (Rs): 1,995.75

Target price (Rs): 2,380

Potential increase (%): 19.25

ICICIdirect said Bata’s focus on cost reduction, omnichannel, product line change and calibrated retail network expansion through the Assetlight franchise should be structurally positive.

TCNS Clothing
CMP (Rs): 743.7

Target price (Rs): 860

Potential increase (%): 15.6

ICICIdirect expects TCNS Clothing earnings to experience compound growth of 30% in the period FY20-FY24, given the company’s strong brand franchise and healthy balance sheet.

PRABHUDAS LILLADHER

Bajaj Finance
CMP (Rs): 7,414.6

Target price (Rs): 9,096

Potential increase (%): 22.7

Prabhudas Lilladher ranked Bajaj Finance as one of their top picks of Samvat 2078 large cap. The brokerage said Bajaj Finance is expected to post a strong return profile as credit cost pressures ease and auto finance rebounds. Premium valuations are here to stay as the company is seen as a profitable fintech lender, he said.

Indraprastha gas
CMP (Rs): 477

Target Price (Rs): 662

Potential increase (%): 38.78

This is one of the company’s top midcap picks. The company continues to play a role in the growing conversion to CNG, driven by the preference for private vehicles and favorable fuel economy, said Prabhudas Lilladher

Burger King
CMP (Rs): 155.1

Target Price (Rs): 251

Potential increase (%): 61.8

Small-cap Burger King India stock is a “brave choice” by Prabhudas Lilladher. While it will take 2-3 years for the company to report a full turnaround and there may be about a 20% equity dilution to fund the Burger King Indonesia acquisition, the stock seems a gamble. decent from a three to five-year-old perspective, Prabhudas said. Liladher

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