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Kotak Securities picks these 10 potential stock ideas for Samvat 2078

SBI, ITC, and Reliance Industries are among the top 10 Muhurat picks, which are expected to do well in Samvat 2078.

November 02, 2021 / 03:06 PM IST
In Samvat 2077, the Indian market had a good run with the key benchmark indices – Nifty and Sensex - gaining around 50 percent each in the year. While there are a few risks for the market such as the possibility of a third wave of coronavirus, withdrawal of stimulus by global central banks and rising inflation, experts seem positive. Kotak Securities expects a strong economic and earnings revival. In addition to these, a stable Covid-19 situation should provide some short-term support to the market. Here are 10 stocks picks by Kotak Securities for the upcoming year.
In Samvat 2077, the Indian market had a good run with the key benchmark indices – Nifty and Sensex - gaining around 50 percent each in the year. While there are a few risks for the market such as the possibility of a third wave of coronavirus, withdrawal of stimulus by global central banks and rising inflation, experts seem positive. Kotak Securities expects a strong economic and earnings revival. In addition to these, a stable Covid-19 situation should provide some short-term support to the market. Here are 10 stocks picks by Kotak Securities for the upcoming year.
ACC | Target: Rs 2,550 | ACC has impressively kept costs under control despite commodity cost headwinds in 9MCY21. Benefits of master supply agreement and cost-saving initiatives like ‘Parvat’ are reflecting under various cost heads. Its expansion and cost-saving projects provide growth visibility. Kotak Securities expect company’s volumes to grow by 17% in CY21E and by 8% in CY22E.
ACC | Target: Rs 2,550 | ACC has impressively kept costs under control despite commodity cost headwinds in 9MCY21. Benefits of master supply agreement and cost-saving initiatives like ‘Parvat’ are reflecting under various cost heads. Its expansion and cost-saving projects provide growth visibility. Kotak Securities expect company’s volumes to grow by 17% in CY21E and by 8% in CY22E.
BPCL | Target: Rs 550 | Broking house remain bullish on the company noting expected recovery in refining margins driven by sustained improvement in global demand, robust marketing margins despite elevated oil prices and potential value unlocking from privatization.
BPCL | Target: Rs 550 | Broking house remain bullish on the company noting expected recovery in refining margins driven by sustained improvement in global demand, robust marketing margins despite elevated oil prices and potential value unlocking from privatization.
Hindalco Industries | Target: Rs 565 | Broking house expect the company to report free cashflow of Rs 29,575 crore during FY22-24E period. Strong aluminum prices and record margins at Novelis to drive earnings upgrades. With upside risks to earnings across India & Novelis, company offers attractive risk-reward.
Hindalco Industries | Target: Rs 565 | Broking house expect the company to report free cashflow of Rs 29,575 crore during FY22-24E period. Strong aluminum prices and record margins at Novelis to drive earnings upgrades. With upside risks to earnings across India & Novelis, company offers attractive risk-reward.
Hindustan Unilever | Target: Rs 2,950 | The company is market leader in home care segment. The management has called out some softness in rural demand and company is confident of consistent double digit EPS growth partly aided by modest margin expansion.
Hindustan Unilever | Target: Rs 2,950 | The company is market leader in home care segment. The management has called out some softness in rural demand and company is confident of consistent double digit EPS growth partly aided by modest margin expansion.
ICICI Bank | Target: Rs 900 | Kotak Securities maintain the positive view on the stock and remains a top pick. The scope of earning upgrades remain high, with valuation has room for expansion. The broking firm maintain buy with revised fair value of Rs 900.
ICICI Bank | Target: Rs 900 | Kotak Securities maintain the positive view on the stock and remains a top pick. The scope of earning upgrades remain high, with valuation has room for expansion. The broking firm maintain buy with revised fair value of Rs 900.
Infosys | Target: Rs 2,000 | Infosys will outperform TCS on revenue growth for the third consecutive year. Infosys has increased FY22E revenue growth guidance to 16.5-17.5% in c/c (constant currency) from 14-16% earlier. The guidance revision is impressive and reflects strength in demand and market share gains. Broking house forecast good double-digit revenue for the next three years.
Infosys | Target: Rs 2,000 | Infosys will outperform TCS on revenue growth for the third consecutive year. Infosys has increased FY22E revenue growth guidance to 16.5-17.5% in c/c (constant currency) from 14-16% earlier. The guidance revision is impressive and reflects strength in demand and market share gains. Broking house forecast good double-digit revenue for the next three years.
ITC | Target: Rs 275 | The company witnessed gradual improvement in market conditions post mid-June 2021. It launched refreshed packs of many brands in core areas. The FMCG business witnessed 10.4% yoy in revenue growth in Q1FY22 aided by uptick in demand for staples and convenience foods. ITC continues to invest towards distribution expansion in FMCG business. The domestic leisure segment witnessed an uptick since Jun 2021 which augurs well for the hotel business.
ITC | Target: Rs 275 | The company witnessed gradual improvement in market conditions post mid-June 2021. It launched refreshed packs of many brands in core areas. The FMCG business witnessed 10.4% yoy in revenue growth in Q1FY22 aided by uptick in demand for staples and convenience foods. ITC continues to invest towards distribution expansion in FMCG business. The domestic leisure segment witnessed an uptick since Jun 2021 which augurs well for the hotel business.
Larsen & Toubro | Target: Rs 2,100 | HDFC Securities expect 17% CAGR in revenues and 26% CAGR in PAT of L&T’s core Engineering and Construction(E&C) business in FY21-24. Broking firm reiterate positive stance on L&T and value the consolidated core E&C business at 17x earnings multiple.
Larsen & Toubro | Target: Rs 2,100 | HDFC Securities expect 17% CAGR in revenues and 26% CAGR in PAT of L&T’s core Engineering and Construction(E&C) business in FY21-24. Broking firm reiterate positive stance on L&T and value the consolidated core E&C business at 17x earnings multiple.
Reliance Industries | Target: Rs 2,800 | Near-term triggers from (1) recovery in refining, (2) launch of JioPhone Next, (3) plausible hike in telecom tariffs and (4) anticipated strong growth in retail business keeps us constructive on the stock. Broking house expect higher subscriber base and rise in blended ARPU to Rs 168/month in FY2023 which will drive substantial increase in revenues and EBITDA. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
Reliance Industries | Target: Rs 2,800 | Near-term triggers from (1) recovery in refining, (2) launch of JioPhone Next, (3) plausible hike in telecom tariffs and (4) anticipated strong growth in retail business keeps us constructive on the stock. Broking house expect higher subscriber base and rise in blended ARPU to Rs 168/month in FY2023 which will drive substantial increase in revenues and EBITDA. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
State Bank of India | Target: Rs 550 | The company is well positioned to emerge stronger and can see more aggression on growth. Broking firm raise fair value to Rs 550 from Rs 520; and value it at 1.3x adjusted book.
State Bank of India | Target: Rs 550 | The company is well positioned to emerge stronger and can see more aggression on growth. Broking firm raise fair value to Rs 550 from Rs 520; and value it at 1.3x adjusted book.
Rakesh Patil
first published: Oct 28, 2021 12:14 pm

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