With heightened geopolitical concerns, elevated inflation, and continued rate tightening by central banks keeping investors on the edge, a broad-based bull run in the new Samvat seems unlikely. But analysts said some stocks could still emerge as winners.
ET has compiled a list of 30 such stocks — 10 each from large-cap, mid-cap, and small-cap segments — recommended by the 10 leading brokerages.
ITCLTP: Rs 346 | Target: Rs 380 The recovery in the cigarette business and uptick in agri, hotels, and paperboard in the near term makes ITC a better play in the entire FMCG pack where valuations are high
LTP: Rs 57 | Target: Rs 70 The stock is poised for a re-rating, given the continuous improvement in the bank’s asset quality and its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25.
LTP: Rs 763 | Target: Rs 870 Large headroom for expansion, as the company plans to open over 200 stores in the next 3-4 years, implying an additional 40-50 stores annually.
CENTRUM BROKING Sun PharmaLTP: Rs 977 | Target: Rs 1,130 The company delivered improved earnings growth led by continued profitable growth in the speciality portfolio, sustained strong performance in domestic formulations, and steady growth from global markets.
LTP: Rs 269 | Target: Rs 315 Technology-driven customised products, significant exports, and after-market services are key strengths. An upsurge in order inflow led by a revival in industrial capex will act as a key growth catalyst.
La OpalaLTP: Rs 400 | Target: Rs 442 Last quarter, La Opala expanded its capacity by 45% to 36,000 tonnes. The management has also indicated to expand into the Borosil glass category, for which it intends to spend Rs 70 crore over the next oneand-a-half years.
HDFC SECURITIES ICICI BankLTP: Rs 893 | Target: Rs 999 De-risking its loan book by reducing its corporate portfolio and focusing on high margin-less risky retail segment in times of credit growth pick-up in the system, building a resilient balance sheet and more stringent underwriting practices remain the key positives.
Bharat ElectronicsLTP: Rs 106 | Target: Rs 123 Large order backlog of Rs 55,333 crore, easing chip supply situation, thrust on Aatmanirbhar in defence production, and diversifying into non-defence business — all provide healthy revenue and margin visibility.
and PetrochemicalsLTP: Rs 988 | Target: Rs 1,058 Growth could be driven by a change in product mix, availability of additional capacities, strong growth prospects in the technical ammonium nitrate business, high regulatory entry barriers, improving capacity utilisation, favourable chemical cycle, and a strong uptick in return ratios.
Axis BankLTP: Rs 831 | Target: Rs 970 With strong capitalisation levels at about 17.8%, Axis Bank is poised to pedal higher business growth. The firm expects Axis to deliver a return on assets of 1.5% and return on equity of 15% over FY22-24.
Apollo TyresLTP: Rs 287 | Target: Rs 335 The company is focused on capital efficiency, asset sweating, controlled capex spending, healthy free-cash flow generation, and deleveraging the balance sheet. With a debt reduction, the return on capital employed is seen at 13% by FY24.
Healthcare Global EnterprisesLTP: Rs 295 | Target: Rs 345 De-leveraging the balance sheet and reducing losses across new centres have substantially eased legacy overhangs.
IDBI CAPITAL LTP: Rs 4,165 | Target: Rs 5,248 The firm expects a better revenue mix from modern large-sized stores, going forward. It has forecast revenue to grow 35% and profit after tax to grow at a CAGR of 44% over FY22 -twenty four.
LTP: Rs 8,500 | Target: Rs 11,500 The company claims to have increased the pin-code services to cater to 98% of India’s business needs. The stock is trading at a PE ratio of 45 times FY23 Bloomberg earnings per share estimates which looks attractive .
LTP: Rs 372 | TP: Rs 381 The company is tied up 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 BankLTP: Rs 893 | Target: Rs 980 The bank reported a broadbased loan growth. Overall loan growth improved to 17% YoY in FY22 from 14% in FY21. While this was driven by the retail and SME segments, with a 20%/ 33% growth, respectively.
JB ChemicalsLTP: Rs 1,910 | Target: Rs 2,380 With JB’s cardiac segment growing at 20% plus, acute brands making in-roads in tier-2 and tier-3 markets, and robust traction in newer therapies like respiratory, paediatrics, and diabetes, JB is well-placed to deliver 15-16% organic CAGR in India sales over FY22-25.
LTP: Rs 318 | Target: Rs 357 A strong presence in the underserviced and expanding affordable housing finance segment, the difficult-to assess self-employed segment, impeccable asset quality, superior profitability, and strong capitalisation would ensure that premium valuations ahead sustain.
JM FINANCIAL SERVICES Titan CompanyLTP: Rs 2,646 | Target: Rs 3,100 Focus on in-house brands, domestic sourcing, and channel mix is further improving the margin outlook for the company. The upcoming festive and wedding season should see pent-up demand supporting aggressive growth expectations from all three verticals.
LTP: Rs 2,262 | Target: Rs 2,730 The company continues to be debt free with a sizeable net worth of Rs 3,573 crore on a consolidated basis. This will help to leverage the balance sheet for future expansion activities.
Metro BrandsLTP: Rs 899 | Target: Rs 1,070 The recent shift of consumer behaviour towards footwear, now considered a fashion statement rather than a value purchase a few years ago, has led to increased premiumisation of products and improved store level unit economics across the sector , leading to the re-rating of the sector.
IndusInd BankLTP: Rs 1,218 | Target: Rs 1,450 Bank’s business growth is likely to accelerate as key businesses, viz., vehicle and microfinance recover. The brokerage expects loan and profit CAGR of 18% and 40% over FY22-24.
CAMSLTP: Rs 2,562 | Target: Rs 3,000 CAMS is a market leader with a 70% share in India’s mutual fund registrar and transfer agent (RTA) industry. Mutual fund and non-mutual fund businesses to register an FY22-25 revenue CAGR of 13 % and 20%, with a 15% CAGR in profits.
Lemon TreeLTP: Rs 86 | Target: Rs 110 Lemon Tree is in a sweet spot with business travel picking up, as 86% of its rooms are located in business destinations
PRABHUDAS LILLADHER Bharti AirtelLTP: Rs 783 | Target: Rs 1,032 Bharti’s return on equity is to improve to 22.1% for FY25 from 6.9% in FY22. We expect a free cash flow of Rs 39,800 crore for FY25 with a reduction in net debt to Rs 54,800 cr.
Ashok LeylandLTP: Rs 147 | Target: Rs 200 Multiple price hikes, a positive demand outlook, and softening raw material costs could lead to margin expansion at Ashok Leyland.
LTP: Rs 543 | Target: Rs 860 Co’s vertical integration business model enables global leadership, while specialty chemicals lead earnings growth aided by capital allocation.
RELIGARE BROKING LTP: Rs 995 | Target: Rs 1,333 The firm is positive on long-term growth prospects as it would be driven by a strong order book across verticals, continuous demand for a service business, and robust digital capabilities. The stock is trading at a comfortable valuation.
United SpiritsLTP: Rs 829 | Target: Rs 1,093 Religare likes United Spirits in this segment, given the positive industry growth prospects and the company’s tie-up with global giant Diageo, constant focus on premiumisation and renovation.
LTP: Rs 266 | Target: Rs 331 NAM’s consistent increase in equity assets, industry-leading retail assets, focus on growing SIP book, and strong presence in B-30 cities augments growth prospects well.