Angel One bets on these 14 stocks for 11-69% return
Ramkrishna Forgings, HDFC Bank, Stove Kraft, Carborundum Universal, Federal Bank, Amber Enterprises India, HCL Technologies are among top chart picks by Angel One for an upside upto 69 percent.
Indian benchmark indices ended on positive note for the second consecutive day on December 22 amid positive global cues, ignoring rising concerns over a possible third wave due to Omicron variant. Here are the 14 top picks of Angel One with an upside of up to 69 percent.
2/15
Ashok Leyland | Rating: Buy | LTP: Rs 124 | Target: Rs 175 | Upside: 41 percent | Upside: percent | Broking house believe that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a buy.
3/15
Carborundum Universal | Rating: Buy | LTP: Rs 928 | Target: Rs 1,100 | Upside: 18 percent | The company is expected to benefit from improving demand scenarios across its end user industries such as auto, auto components, engineering, basic metals, infrastructure, and power. While demand from the auto sector has been robust, broking firm expect demand from metal industry pick up given increased economic activity.
4/15
Federal Bank | Rating: Buy | LTP: Rs 81.30 | Target: Rs 135 | Upside: 66 percent | It is one of India’s largest old generation private sector banks with total assets of Rs 1.9 lakh crore, with deposits of Rs 1.56 lakh crore and a loan book of Rs 1.2 lakh crore in F21. NPA’s have remained steady for the bank over the past few years with GNPA for Q3FY21 at 3.38%, while NNPA ratio stood at 1.14%. PCR at the end of Q3FY21 stood at ~67% which Angel One believe is adequate.
Suprajit Engineering | Rating: Buy | LTP: Rs 411 | Target: Rs 520 | Upside: 26 percent | Broking house believe the company is prime beneficiary of ramp-up in production by OEMs across the globe and is well insulated from threat of EV (is developing new products). Its premium valuations are justified in our opinion owing to strong outlook and top-grade quality of earnings.
6/15
Stove Kraft | Rating: Buy | LTP: Rs 946 | Target: Rs 1,288 | Upside: 36 percent | Post Covid, organized players are gaining market share from unorganized players which would benefit the player like Stove Kraft. Going forward, Angel One expect Stove Kraft to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and wide distribution network.
7/15
AU Small Finance Bank | Rating: Buy | LTP: Rs 1,026 | Target: Rs 1,520 | Upside: 48 percent | Given stable asset quality, broking house expect loan growth to pick up in Q2FY22 which should lead to a rerating for the bank. Broking house are positive on AU small FInance Bank and recommend a buy with a target price of Rs 1375 (5xFY23 BVPs of Rs 275).
8/15
Safari Industries | Rating: Buy | LTP: Rs 856 | Target: Rs 1,126 | Upside: 31 percent | The Company has a wide distribution network which would support growth going ahead. Focused product strategy and diversified product portfolio to boost growth. Going forward, Angel One expect Safari Industries to report strong top-line & bottom-line growth on the back of strong growth in the organized sector, wide distribution network, strong brand & promoter initiatives.
HDFC Bank | Rating: Buy | LTP: Rs 1,445 | Target: Rs 1,859 | Upside: 28 percent | Given best in class asset quality and expected rebound in growth from Q2FY22, Angel One is positive on the bank given reasonable valuations at 3.0xFY23 adjusted book which is at a discount to historical averages. It value the stock at3.7xFY23 adjusted book and arrive at a target price of Rs 1,859.
10/15
Sona BLW Precision Forgings | Rating: Buy | LTP: Rs 696 | Target: Rs 959 | Upside: 37 percent | The company’s capabilities have enabled them to gain market share across its products especially for products related to EV/BEV. They also have strong market share ranging from 55-90% for differential gears for PV, CV and tractor OEMs in India. Given the traction in the BEV/Hybrid Vehicle space, Angel One believe that Sona Comstar will continue to command higher multiple which is justified by ~47% earnings CAGR over FY21-24E.
11/15
PI Industries | Rating: Buy | LTP: Rs 2,953 | Target: Rs 3,440 | Upside: 16 percent | PI Industries has announced that they will be acquiring the API business of Indswift Labs for a consideration of Rs 1,500 crore. Indswift Labs had clocked revenues of Rs 850 crore in FY21 and provides PI with an entry into the API business which will help provide the company with an additional lever to drive growth.
12/15
Amber Enterprises India | Rating: Buy | LTP: Rs 3,386 | Target: Rs 4,150 | Upside: 22 percent | In the past 2-3 year, Amber has acquired companies like IL JIN Electronics, Ever and Sidwal Refrigeration Industries, which would help in backward integration and also help the company to foray in different segments like railway, metro and defense. Going forward, broking firm expect healthy profitability on back of foray into the Commercial AC segment, entry into export markets, participation in the PLI scheme.
13/15
Sobha | Rating: Buy | LTP: Rs 860 | Target: Rs 1,050 | Upside: 22 percent | Customers are now having preference towards the branded players like Sobha Developers Company expected to launch 17 new projects/phase spread over 12.56mn sqft across various geographies. Majority of launches will be coming from existing land banks. Company having land bank of approx. 200mn Sqft of salable area.
14/15
Ramkrishna Forgings | Rating: Buy | LTP: Rs 914 | Target: Rs 1,545 | Upside: 69 percent | With the end to the CAPEX cycle, the favorable outlook in the medium term, and sufficient capacity in place, Angel One believes company volumes would be able to post volume CAGR of 29% over FY21-23E. RKFL has been able to add new products which have higher value addition. Better mix along with operating leverage is expected to result in ~550 YoY bps EBITDA margin improvement in FY22E. Aided by strong volumes and profitability as well as balance sheet deleveraging, we expect the RKFL’s earnings to jump 10-12x in FY23E-24E from FY21 levels.
15/15
HCL Technologies | Rating: Accumulate | LTP: Rs 1,222 | Target: Rs 1,363 | Upside: 11 percent | Strong deal wins should help drive growth in the services business which should make up for any shortfall in the product business due to the delays in deal signing. At CMP, the stock is trading at a P/E multiple of 21.5xFY23 EPS estimate which is at a significant discount to the other large cap IT companies like Infosys and TCS and offers tremendous value at current levels given market leader status in Infrastructure management.
