Samvat 2079 stocks: Top stock picks for Samvat 2079

Samvat 2079 – the Hindu New Year that begins October 24 – could be a test of nerves as investors brace for more uncertainty as the likelihood of a western recession looms over markets.

With heightened geopolitical concerns, elevated inflation and continued central bank rate hikes keeping investors on their toes, a broad-based bull run in the new Samvat seems unlikely. However, analysts said some stocks could still emerge as winners.

ET has compiled a list of 30 such stocks — 10 each from the large-cap, mid-cap, and small-cap segments — that are recommended by the top 10 brokers.

AXIS SECURITIES

ITK
LTP: Rs 346 | Target: Rs 380

The recovery in cigarettes and the short-term uptrend in agricultural products, hotels and cardboard make ITC a better position in the overall FMCG package, where valuations are high


LTP: Rs 57 | Target: Rs 70

Given the bank’s continued improvement in asset quality and its strategy to improve operating performance with expected operational leverage and superior yield ratios in FY23-25, the stock is poised for a re-rating.


LTP: Rs 763 | Target: Rs 870

Great scope for expansion as the company plans to open over 200 stores over the next 3-4 years, which means 40-50 additional stores annually.

CENTER INTERMEDIATION


Sun Pharma
LTP: Rs 977 | Target: Rs 1,130

The company delivered improved earnings growth, led by continued profitable growth in the specialties portfolio, continued strong performance in domestic formulations and steady growth in global markets.


LTP: Rs 269 | Target: Rs 315

Technology-driven customized products, major exports and after-market services are key strengths. An increase in new orders, led by a revival in industrial investment, will act as a key catalyst for growth.

La Opala
LTP: Rs 400| Target: Rs 442

Last quarter, La Opala expanded its capacity by 45% to 36,000 tons. Management has also indicated expansion into the Borosil glass category, on which it intends to spend Rs 70 crore over the next year and a half.

HDFC SECURITIES


ICICI bank
LTP: Rs 893 | Target: Rs 999

De-risking the loan portfolio by reducing the corporate portfolio and focusing on the no-margin, high-risk retail segment at a time of credit growth in the system, building a resilient balance sheet and tightening underwriting practices remain the key positives.

Bharat electronics
LTP: Rs 106 | Target: Rs 123

Large order backlog of Rs 55,333 crore, improve chip supply situation, push on Aatmanirbhar in defense production,

and diversification into the non-defense business – all of which provide healthy revenue and margin visibility.

and petrochemicals
LTP: Rs 988 | Target: Rs 1,058

Growth could be driven by a change in product mix, the availability of additional capacity, strong growth prospects in the technical ammonium nitrate business, high regulatory barriers to entry, improved capacity utilization, a favorable chemical cycle and a sharp increase in return rates.




axis bench
LTP: Rs 831 | Target: Rs 970

With a strong capitalization ratio of around 17.8%, Axis Bank is poised to fuel higher business growth. That

The Company expects Axis to deliver a 1.5% return on capital and a 15% return on equity in FY22-24.

Apollo tires
LTP: Rs 287 | Target: Rs 335

The company is focused on capital efficiency, asset sweating, controlled capital expenditures, healthy free cash flow generation and balance sheet deleveraging. When deleveraging, the return on capital employed is 13%

to FY24.

Global healthcare companies
LTP: Rs 295 | Target: Rs 345

The deleveraging of the balance sheet and the reduction of losses in new centers have significantly reduced the legacy burden.

IDBI CAPITAL



LTP: Rs 4,165 | Target: Rs 5,248

The company expects a better sales mix from modern, large-scale stores in the future. It has forecast sales to grow 35% and profit after tax at a CAGR of 44% in FY22-24.


LTP: Rs 8,500| Target: Rs 11,500

The company claims to have expanded PIN code services to cover 98% of Indian business needs. The stock trades at a PE ratio of 45 times Bloomberg’s FY23 EPS estimates, which looks attractive.


LTP: Rs 372 | TP: Rs 381

The company is affiliated with institutions such as JPMorgan, KKR, Portman Holdings, ASK Capital, Motilal Oswal, ICICI Ventures and Planet Smart City, which has benefitted the company’s growth trajectory, internal processes and corporate governance practices




ICICI bank
LTP: Rs 893 | Target: Rs 980

The bank reported broad-based loan growth. Total loan growth improved from 14% in FY21 to 17% year-on-year in FY2022, driven by the retail and SME segments, with growth of 20% and 33%, respectively.

JB Chemicals
LTP: Rs 1,910 | Target: Rs 2,380

With growth in JB’s cardiac segment of over 20%, acute brands making gains in Tier 2 and Tier 3 markets, and robust traction in newer therapies such as respiratory, pediatrics and diabetes, JB is well positioned to… To deliver 15-16% organic CAGR in India sales over FY22-25.


LTP: Rs 318 | Target: Rs 357

A strong presence in the underserved and expanding affordable home finance segment, the hard-to-value self-employed segment, impeccable asset quality, superior profitability and strong capitalization would do so

ensure premium ratings continue.

JM FINANCIAL SERVICES


Company Titan
LTP: Rs 2,646 | Target: Rs 3,100

The focus on private label, domestic sourcing and channel mix further improves the margin prospects for the company. In the upcoming holiday and wedding season, pent-up demand should support aggressive growth expectations from all three sectors.


LTP: Rs 2,262 | Target: Rs 2,730

The company remains debt free with a substantial net worth of Rs 3,573 crore on a consolidated basis. This will help leverage the balance sheet for future expansion activities.

Metro brands
LTP: Rs 899 | Target: Rs 1,070

The recent shift in consumer behavior towards footwear, which a few years ago was now considered more of a fashion statement than a value buy, has led to increased premiumization of products and improved store unit economics across the sector, leading to a reassessment of the sector.




IndustryInd Bank
LTP: Rs 1,218 | Target: Rs 1,450

The bank’s business growth is likely to accelerate as its key businesses, namely vehicles and microfinance, recover. The brokerage firm expects a CAGR for loans and earnings of 18% and 40% over FY22 through FY24.

KAMS
LTP: Rs 2,562 | Target: Rs 3,000

CAMS is a market leader with a 70% stake in the Indian Mutual Fund Registrar and Transfer Agency (RTA).

Mutual fund and non-mutual fund companies to register a CAGR of 13% and 20% for FY22 through FY25 revenue, with a

15% CAGR in profit.

lemon Tree
LTP: Rs 86 | Target: Rs 110

Lemon Tree is in a good spot when it comes to business travel, with 86% of the rooms being used for business

Destinations

PRABHUDA’S LILLADHER


Bharti Airtel
LTP: Rs 783 | Target: Rs 1,032

Bharti’s return on equity is expected to improve to 22.1% for FY25 from 6.9% in FY22. We expect free cash flow to be Rs 39,800 crore for FY25 with net debt reduced to Rs 54,800 crore.

Ashok Leyland
LTP: Rs 147 | Target: Rs 200

Several price increases, positive demand prospects and falling raw material costs could lead to a margin expansion at Ashok Leyland.


LTP: Rs 543 | Target: Rs 860

Co’s vertical integration business model enables global leadership while specialty chemicals leads earnings growth, supported by capital allocation.

RELIGIOUS MEDIATION



LTP: Rs 995 | Target: Rs 1,333

The company is positive on long-term growth prospects as it would be driven by a strong backlog across industries, continued demand for a services business and robust digital capabilities. The stock is trading at a comfortable valuation.

united spirits
LTP: Rs 829 | Target: Rs 1,093

Religare likes United Spirits in this segment given the industry’s positive growth prospects and the company’s association with global giant Diageo, constant focus on premiumization and renovation.


LTP: Rs 266 | Target: Rs 331

NAM’s steady rise in equity investments, industry-leading retail assets, focus on growing SIP book and strong presence in B-30 cities all improve growth prospects well.

https://economictimes.indiatimes.com/markets/stocks/news/top-stock-picks-for-samvat-2079/articleshow/94975013.cms Samvat 2079 stocks: Top stock picks for Samvat 2079

Russell Falcon

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