Geojit Financial Services recommends the following stocks:
Rating: BUY
ICICI Bank is India's largest private sector bank with network of 4,504 Branches and 14,146 ATM's across India.
The bank is well placed to capitalize on the improvement in economic cycle with the increasing share of retail business. We expect advances and deposits to grow at a healthy CAGR of 12 percent and 13 percent, respectively over FY16-19E led by strong traction from retail segment.
Although the asset quality stress from corporate loan portfolio has increased, the quality of its retail portfolio is still intact. Increasing share of retail business and continuous focus on reducing stress exposure will also lead to gradual improvement in return ratios.
Rating: BUY
Astra-microwave products Ltd (AMPL) is one among few leading designers and manufacturer of wide array of radio frequency systems, microwave chips, microwave based components and subsystems for Defence, Telecom and Space.
Order book has marginally improved on a YoY basis, which currently stands at Rs 640cr as on December 2016. The order intake guidance for FY18E is at Rs 650cr which is encouraging. Going forward, the future outlook has significantly improved given better visibility on order pipeline. With improvement in sales mix towards higher domestic order execution, we anticipate better earnings growth & margins. We are factoring earnings growth of 20 percent CAGR over FY17E-19E and we maintain BUY rating for the stock.
Rating: BUY
Pidilite Industries Ltd. is a pioneer in consumer and speciality chemicals in India. The company has a diversified product portfolio including adhesives and sealants, construction chemicals, hobby colours and polymer emulsions, among others.
With established brands and wide distribution network, Pidilite enjoys strong pricing power in most of the categories it operates. The company has also leveraged its R&D capabilities well, continuously driving product innovation thus, culminating in successful launch of various products over the years.
Given these inherent advantages, we believe Pidilite will be a strong play on recovery in discretionary spending. We estimate revenue/PAT CAGR of 12.5 percent/17 percent over FY16- 18E and recommend BUY.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
