When we entered Samvat 2078, we left a very successful Samvat 2077, and investors could explore some investment ideas.
When we entered Samvat 2078, we left a very successful Samvat 2077, and investors could explore some investment ideas. Axis Securities said that SAMVAT 2078 will be a year of balance sheet leverage, which is mainly due to the significant improvement in corporate profitability.
"In general, the Indian market has entered a profit-up cycle, and Nifty's profit growth is expected to exceed 20% in the next two years. As the economic recovery accelerates, more cyclical industries may join the upward trend in anticipation of future government spending increases. "It said in the Samvat 2078 report.
Taking into account all economic and market developments, Axis Securities provides you with a list of 10 stocks belonging to different industries and themes. These stocks are: SBI Life, ICICI Securities, Cholamandalam Investment, Can Fin Homes, KNR Construction, ACC, Cyient, Mindtree, APL Apollo Tubes and Safari Industries. Let's take a look one by one and look at the target price set by the brokerage. 1. ACC Limited CMP: 2236 rupees; target price: 2,570 rupees; upside: 15% Axis Securities believes that capacity expansion and high-end will drive the growth of the stock. The company is expanding its cement grinding capacity by 14% to 39.2 mntpa from the current 34.5 million tons per year (mntpa). This will enable it to cater to the high-demand market in central India, which is showing considerable growth potential driven by increasing housing and infrastructure activities. The new production capacity is expected to be put into production in 22 years. It stated that, considering the additional capacity and strong demand, we expect the company's sales volume to achieve a compound annual growth rate of 7% and a compound annual growth rate of 9% for clock revenue during 21-23 years.
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The company was formed by the merger of 10 cement companies in 1936 and has 17 modern cement plants, 79 ready-mixed concrete plants, a huge distribution network of more than 11,000 distributors, and pan-Indian sales offices
2. Cyient CMP: 1,094 Target price: 1,300 Upside: 19% The second choice of brokers comes from the service industry. It believes that flexible business structure and long-term contracts will accelerate growth, and it is India's leading ER&D service provider. Cyient is headquartered in Hyderabad and is India's leading ER&D service provider. It uses its strong infrastructure and capabilities to provide world-class ER&D solutions for vertical industries, including A&D, communications, railways, oil and gas, high-tech and manufacturing.
3. Mindtree CMP: Rs 4,555 Target price: Rs 5,100 Upside: 12% As encouraging growth and outstanding visibility will drive the stock’s actions, Yes Securities chose Mindtree Ltd from the IT field. Mindtree is part of the L&T Group, one of India's leading IT services and professional digital solutions providers, headquartered in Bangalore. It provides industry-wide solutions, including next-generation services such as cloud computing, digital transformation, the Internet of Things, and machine learning. The company also has expertise in providing high-tech, manufacturing, banking and financial services solutions.
The broker's choice of ICICI Securities is based on the strong Q2FY22, which focuses on expanding the distribution business and good valuation. ICICI Securities Limited (ISEC) is a comprehensive technology company that provides a wide range of services, including retail and institutional brokerage, financial product distribution, private wealth management and consulting services. The total assets under management (AUM) of the company is Rs 5.1 trillion among different products. Currently, it is the fourth largest broker (in terms of NSE active clients) with a market share of 8.6%
5. CAN FIN HOMES CMP: Rs 656. Target price: Rs. 800. Upside: 22% is the stock selection Can Fin Homes is based on the expectation of a rebound in loan growth and strong asset quality. Can Fin Homes is promoted by Canara Bank (30% of shares) and is a 33-year-old retail housing finance company. Headquartered in Bangalore, it has more than 160 branches, 21 affordable housing loan centers and 14 satellite offices throughout India, distributed in 21 states/federal territories.
6. CHOLAMANDALAM INVESTMENT AND FINANCE CO LTD CMP: 604 rupees Target price: 690 rupees Upside: 14% The reason for choosing this stock is the diversified investment portfolio, the expectation of improved collection trends, and the rebound in demand. Cholamandalam Investment and Finance Company Ltd (CIFC) is a diversified secured asset sector, such as auto finance and home equity (mortgage loans). Diversification across departments and regions and better access to funding (through parent-child relationships and strong credit practices) enable CIFC to withstand macro headwinds better than its peers.
7. SBI LIFE INSURANCE CMP: 1172 Target price: 1350 Upside: 15% Yes Securities chose SBI Life Insurance Company (SBIL) as the next option for Samvat 2078. SBIL was established as a joint venture between the National Bank of India and BNPPC, the insurance subsidiary of BNP Paribas. SBI Life enjoys a strong competitive advantage by virtue of its bancassurance business with the National Bank of India. In addition, its diversified product portfolio and strong distribution capabilities have paved the way for the company to achieve faster growth and market share growth.
8. APL Apollo Tubes CMP: 807 rupees. Target price: 960 rupees. Upside: 19%. The idea of choosing this is to perform strongly with the support of strong fundamentals, the brokerage firm said. APL Apollo Tubes (APAT) is one of India's leading manufacturers of branded steel products. The company is headquartered in Delhi NCR and has 10 manufacturing plants that produce more than 1,500 types of MS black pipes, galvanized pipes, pre-galvanized pipes, structural ERW steel pipes and hollow profiles for urban infrastructure, housing, irrigation, solar power plants, etc. Industry applications provide services, greenhouses and engineering. 9. Safari Industries CMP: Rs 840. Target price: Rs 930. Upside: 11%. Securities companies believe that the pick-up of domestic and international travel and the reduction of reliance on Chinese purchases will help this stock. Safari Industries India (SAFARI) Limited is engaged in the manufacture and trade of luggage and luggage accessories. The company's product range includes polycarbonate (PC) zipper suitcases. It also offers various categories of products, such as laptop bags and backpacks. Its backpack categories include daily casual backpacks, laptop backpacks, backpacks, concept backpacks, Overnighter, etc.
10. KNR Constructions Limited CMP: 282 rupees; target price: 325 rupees; upside: 15%. The broker believes that the stock is in a favorable position and can take advantage of the industry's tailwinds. Active government support and strong growth visibility will contribute to this infrastructure share. KNRCL is one of India's leading infrastructure companies, providing engineering, procurement and construction (EPC) services. Over the years, it has accumulated expertise and capabilities to efficiently and timely execute technically complex projects on the basis of individuals and joint ventures. In addition to large-scale EPC irrigation and overpass projects, the company is currently handling 10 HAM (under construction), BOT and Annuity projects in operation.
(Disclaimer: The views/recommendations/recommendations expressed in this article are only provided by investment experts. Zee Business recommends its readers to consult their investment advisors before making any financial decisions.)
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