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20 top picks by Arihant Capital post Budget 2021 announcements

SBI, Larsen and Toubro, ICICI Bank, ITC and Infosys are among the top 20 picks by the Arihant Capital.

February 03, 2021 / 02:33 PM IST
Sensex
Budget 2021 is being perceived as growth-driven and has a higher outlay for capital expenditure as Capital expenditure is estimated to increase from 1.6% of GDP in FY20 to 2.3% of GDP in FY21 (RE) and to 2.5% of GDP in FY22 BE. The best thing about this Budget is focus on infrastructure rather than direct consumption. Arihant Capital picked 20 stocks post the announcements of Union Budget 2021.
Larsen and Toubro | CMP: Rs 1,449 | Target: Rs 1,850 | Accumulate between CMP and upto Rs 1,250 for price objective of Rs 1,850. Large beneficiary due to its size and capex spending by the government.
Larsen and Toubro | CMP: Rs 1,449 | Target: Rs 1,850 | Accumulate between CMP and upto Rs 1,250 for price objective of Rs 1,850. Large beneficiary due to its size and capex spending by the government.
ABB Power | CMP: Rs 1,383 | Target: Rs 1,812 | Play on Capex pick up, EV infrastructure, wastewater treatment opportunity & renewable energy segment. Accumulate between RS 1,390 and Rs 1,250 for price objective of Rs 1,812.
ABB Power | CMP: Rs 1,383 | Target: Rs 1,812 | Play on Capex pick up, EV infrastructure, wastewater treatment opportunity & renewable energy segment. Accumulate between RS 1,390 and Rs 1,250 for price objective of Rs 1,812.
Ashoka Buildcon | CMP: Rs 97 | Target: Rs 160 | Strong order book, balance sheet improvement, pick up in road movement as it surpasses pre covid levels in most cases, asset monetization. Price objective of Rs 160.
Ashoka Buildcon | CMP: Rs 97 | Target: Rs 160 | Strong order book, balance sheet improvement, pick up in road movement as it surpasses pre covid levels in most cases, asset monetization. Price objective of Rs 160.
Power Mech Projects | CMP: Rs 452 | Target: Rs 700 | Pick up in execution with a strong order book. Valuations attractive on FY22e EPS of RS 70. Accumulate with a price objective of Rs 700.
Power Mech Projects | CMP: Rs 452 | Target: Rs 700 | Pick up in execution with a strong order book. Valuations attractive on FY22e EPS of RS 70. Accumulate with a price objective of Rs 700.
Techno Electric | CMP: Rs 254 | Target: Rs 360 | Decent order book with strong balance sheet. Accumulate between Rs 220-250 for price objective of Rs 360.
Techno Electric | CMP: Rs 254 | Target: Rs 360 | Decent order book with strong balance sheet. Accumulate between Rs 220-250 for price objective of Rs 360.
ISGEC Heavy Engineering | CMP: Rs 377 | Target: Rs 500 | Strong order book and a good pipeline; diversification in newer segment minimize its dependence on sugar. Accumulate between Rs 330-380 for price objective of Rs 500.
ISGEC Heavy Engineering | CMP: Rs 377 | Target: Rs 500 | Strong order book and a good pipeline; diversification in newer segment minimize its dependence on sugar. Accumulate between Rs 330-380 for price objective of Rs 500.
Mahindra Holidays | CMP: Rs 229 | Target: Rs 300 | Huge pent up demand, gradually picking up. Accumulate between Rs 180-217 for price objective of Rs 300
Mahindra Holidays | CMP: Rs 229 | Target: Rs 300 | Huge pent up demand, gradually picking up. Accumulate between Rs 180-217 for price objective of Rs 300
Dollar Industries | CMP: Rs 234 | Target: Rs 360 | New distribution model lead to gaining market share. Valuation attractive than large peers as huge discount. Accumulate for price objective of Rs 360.
Dollar Industries | CMP: Rs 234 | Target: Rs 360 | New distribution model lead to gaining market share. Valuation attractive than large peers as huge discount. Accumulate for price objective of Rs 360.
Century Textiles | CMP: Rs 434 | Target: Rs 600 | Revival in paper business. Pick up real estate segment with good booking. Accumulate with price objective of Rs 600.
Century Textiles | CMP: Rs 434 | Target: Rs 600 | Revival in paper business. Pick up real estate segment with good booking. Accumulate with price objective of Rs 600.
SBI | CMP: Rs 311 | Target: Rs 360 | Recapitalisation of PSU banks, cleaning of stressed assets and spend on infra is a big positive for SBI. The bank has strong liability franchise, reasonable capital position and very attractive valuation. One can accumulate the stock in a price range of Rs 290-310 for a price objective of Rs 360.
SBI | CMP: Rs 311 | Target: Rs 360 | Recapitalisation of PSU banks, cleaning of stressed assets and spend on infra is a big positive for SBI. The bank has strong liability franchise, reasonable capital position and very attractive valuation. One can accumulate the stock in a price range of Rs 290-310 for a price objective of Rs 360.
ICICI Bank | CMP: Rs 603 | Target: Rs 750 | The bank has a strong capital position with strong liability profile coupled with market share gaining position. Asset quality of the bank is much under control. One can buy the stock, Rs 580-600 for a price objective of Rs 750.
ICICI Bank | CMP: Rs 603 | Target: Rs 750 | The bank has a strong capital position with strong liability profile coupled with market share gaining position. Asset quality of the bank is much under control. One can buy the stock, Rs 580-600 for a price objective of Rs 750.
United Spirits | CMP: Rs 573 | Target: Rs 650 | Gaining market share led by premium segment. Valuations attractive with price objective of Rs 650.
United Spirits | CMP: Rs 573 | Target: Rs 650 | Gaining market share led by premium segment. Valuations attractive with price objective of Rs 650.
Indian Bank | CMP: Rs 95 | Target: Rs 150 | Now consolidation benefits to be seen; book less stressed than peers. Valuations are attractive. Accumulate with price objective of Rs 150.
Indian Bank | CMP: Rs 95 | Target: Rs 150 | Now consolidation benefits to be seen; book less stressed than peers. Valuations are attractive. Accumulate with price objective of Rs 150.
Apar Industries | CMP: Rs 367 | Target: Rs 600 | Pick up in execution and good order pipeline. Valuations are attractive. Accumulate with price objective of Rs 600
Apar Industries | CMP: Rs 367 | Target: Rs 600 | Pick up in execution and good order pipeline. Valuations are attractive. Accumulate with price objective of Rs 600
Infosys | CMP: Rs 1,371 | Target: Rs 1,543 | Considering company’s significant contribution from cloud and digital, remains a major beneficiary of this tech upcycle. Accumulate with price target of Rs 1,543 per share.
Infosys | CMP: Rs 1,371 | Target: Rs 1,543 | Considering company’s significant contribution from cloud and digital, remains a major beneficiary of this tech upcycle. Accumulate with price target of Rs 1,543 per share.
Thomas Cook | CMP: Rs 43 | Target: Rs 90 | Strong parentage advantage; pick up in discretionary travel as vaccine; consolation lead to company gaining market share. Accumulate between Rs 40-48 for price objective of Rs 90.
Thomas Cook | CMP: Rs 43 | Target: Rs 90 | Strong parentage advantage; pick up in discretionary travel as vaccine; consolation lead to company gaining market share. Accumulate between Rs 40-48 for price objective of Rs 90.
Kalpataru Power Transmission | CMP: Rs 323 | Target: Rs 480 | Strong order book, aims to be standalone debt free in next few quarters and strong order pipeline. Accumulate between Rs 323 and Rs 280 for price objective of Rs 480.
Kalpataru Power Transmission | CMP: Rs 323 | Target: Rs 480 | Strong order book, aims to be standalone debt free in next few quarters and strong order pipeline. Accumulate between Rs 323 and Rs 280 for price objective of Rs 480.
ITC | CMP: Rs 216 | Target: Rs 300 | No increase in cigarette taxes for ITC, compared to 11-16% increase last year. Cigarette volumes likely to improve consistently. Additional levers like restructuring, FMCG growth. We are positive on the stock and aiming Rs 300.
ITC | CMP: Rs 216 | Target: Rs 300 | No increase in cigarette taxes for ITC, compared to 11-16% increase last year. Cigarette volumes likely to improve consistently. Additional levers like restructuring, FMCG growth. We are positive on the stock and aiming Rs 300.
LIC Housing Finance | CMP: Rs 438 | Target: Rs 500 | In the Union Budget, GoI has proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to March 31, 2022. LIC Housing is one of the key beneficiary in housing finance sector. One can buy the stock in a price range of Rs 400-440 for a price objective of Rs 500.
LIC Housing Finance | CMP: Rs 438 | Target: Rs 500 | In the Union Budget, GoI has proposed to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to March 31, 2022. LIC Housing is one of the key beneficiary in housing finance sector. One can buy the stock in a price range of Rs 400-440 for a price objective of Rs 500.
Raymond Ltd.
Raymond | CMP: Rs 324 | Target: Rs 600 | Discretionary spending pick up; demerger and asset monetization. Accumulate between price Rs 300-327 for objective of Rs 600
Rakesh Patil
first published: Feb 3, 2021 02:24 pm

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