Moneycontrol
Last Updated : Jun 02, 2020 11:07 AM IST | Source: Moneycontrol.com

Slideshow | Angel Broking bets on these 15 stocks that can return upto 30%

Here are the top 15 stocks picked by the Angel Broking with an upside up to 30 percent:

Market jumped 2 percent and extended the rally on the fourth consecutive day on June after government relaxed some lockdown norms to revive the economy. Here are the top 15 stocks picked by the Angel Broking with an upside up to 30 percent:
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The market jumped 2 percent and extended the rally on the fourth consecutive day on June 1 after the government relaxed some lockdown norms in a bid to revive the economy. Here are the top 15 stocks picked by the Angel Broking with an upside up to 30 percent:

Nestle India | Rating: Buy | LTP: Rs 17,157 | Target: Rs 20,687 | Upside: 20 percent. Nestle India manufactures and sells a variety of food products such as Milk & Nutrition, Prepared Dishes & Cooking Aids, Powdered & Liquid Beverages and Confectionery. Going forward, Angel Broking expect healthy growth and profitability on the back of strong brand recall, wide distribution network (4.6mn outlets across India) and new product launches.
2/16

Nestle India | Rating: Buy | LTP: Rs 17,157 | Target: Rs 20,687 | Upside: 20 percent. Nestle India manufactures and sells a variety of food products such as Milk & Nutrition, Prepared Dishes & Cooking Aids, Powdered & Liquid Beverages and Confectionery. Going forward, Angel Broking expects healthy growth and profitability on the back of strong brand recall, wide distribution network (4.6 million outlets across India) and new product launches.

Colgate Palmolive | Rating: Buy | LTP: Rs 1,381 | Target: Rs 1,772 | Upside: 28 percent. Broking house believe that the company should ultimately be able to see sharper market share gain in toothpastes segment on the back of higher ad-spend and re-launch of Colgate Strong Teeth (decent traction seen in last quarter).
3/16

Colgate Palmolive | Rating: Buy | LTP: Rs 1,381 | Target: Rs 1,772 | Upside: 28 percent. Broking house believes that the company should ultimately be able to see sharper market share gain in toothpaste segment on the back of higher ad-spend and re-launch of Colgate Strong Teeth (decent traction seen in last quarter).

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4/16

Avenue Supermart | Rating: Buy | LTP: Rs 2,304 | Target: Rs 2,735 | Upside: 18 percent | Avenue Supermarts owns and operates the supermarket chain ‘D-MART’. Focused on value retailing, it offers a wide range of fast-moving consumer (food and non-food) products, general merchandise and apparel. Angel Broking expects DMART to report consolidated revenue/PAT CAGR of 18%/26%, respectively over FY2019-22E.

P&G Hygiene | Rating: Buy | LTP: Rs 9,982 | Target: Rs 12,230 | Upside: 22 percent. P&GHH manufactures, distributes and markets three major brands in India – Whisper, Vicks, and Old Spice. Sanitary Pads having less than 20% market penetration leaves immense growth opportunity for Whisper. Going forward, Angel Broking expect healthy growth and profitability on the back of strong brand, wide distribution network and new product launches.
5/16

P&G Hygiene | Rating: Buy | LTP: Rs 9,982 | Target: Rs 12,230 | Upside: 22 percent. P&GHH manufactures, distributes and markets three major brands in India – Whisper, Vicks, and Old Spice. Sanitary Pads having less than 20% market penetration leaves immense growth opportunity for Whisper. Going forward, Angel Broking expects healthy growth and profitability on the back of strong brand, wide distribution network and new product launches.

Ipca Laboratories | Rating: Buy | LTP: Rs 1,528 | Target: Rs 1,900 | Upside: 24 percent. 54% of revenue comes from domestic generic and API business. Generics and API continues to provide revenue growth for Ipca. The stock is expected to outperform the Indian Pharmaceutical market (IPM) by 8%-10% p.a in FY 22.
6/16

Ipca Laboratories | Rating: Buy | LTP: Rs 1,528 | Target: Rs 1,900 | Upside: 24 percent. 54% of revenue comes from domestic generic and API business. Generics and API continue to provide revenue growth for Ipca. The stock is expected to outperform the Indian Pharmaceutical market (IPM) by 8%-10% p.a in FY 22.

Infosys | Rating: Buy | LTP: Rs 699 | Target: Rs 841 | Upside: 20 percent. Under the new management of Mr. Salil Parekh Infosys has become aggressive in terms of signing new deals which is expected to drive growth for the company. In FY19 the company won large deals of USD 6.3 billion as against USD 3.1 billion in FY18. For the first 9 months of FY21 the company has already signed large deals worth USD 7.3 billion. Broking House expect Infosys to report above industry average growth rates on the back of strong deal wins which will drive topline growth. Rupee depreciation from 71 levels to 77 to the US dollar will have a positive impact on top line and bottom-line and will mitigate the adverse impact due to Covid-19 outbreak to a large extent.
7/16

Infosys | Rating: Buy | LTP: Rs 699 | Target: Rs 841 | Upside: 20 percent. Under the new management of Salil Parekh Infosys has become aggressive in terms of signing new deals which are expected to drive growth for the company. In FY19, the company won large deals of $6.3 billion as against $3.1 billion in FY18. For the first 9 months of FY21, the company has already signed large deals worth $7.3 billion. Broking House expects Infosys to report above industry average growth rates on the back of strong deal wins which will drive topline growth. Rupee depreciation from 71 levels to 77 to the US dollar will have a positive impact on top-line and bottom-line and will mitigate the adverse impact due to COVID-19 outbreak to a large extent.

Bharti Airtel | Rating: Accumulate | LTP: Rs 559 | Target: Rs 629 | Upside: 12 percent. Telecom operators have increased tariffs by 35% in Nov’19. There is a possibility of another round of tariff hikes by telecom companies in FY21 given that tariffs are still very low. If Vodafone Idea goes out of business, Bharti would benefit significantly from addition of subscribers.
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Bharti Airtel | Rating: Accumulate | LTP: Rs 559 | Target: Rs 629 | Upside: 12 percent. Telecom operators have increased tariffs by 35% in Nov’19. There is a possibility of another round of tariff hikes by telecom companies in FY21 given that tariffs are still very low. If Vodafone Idea goes out of business, Bharti would benefit significantly from the addition of subscribers.

L&T Infotech | Rating: Accumulate | LTP: Rs 1,842 | Target: Rs 2,038 | Upside: 10 percent. The company has a very strong exposure to the BFSI & manufacturing verticals which accounts for 45% and 17.5% of the company’s revenues and are amongst the least impacted vertical due to the shutdown on account of Covid-19. The company doesn't have a very large exposure to service oriented verticals like travel & Tourism which are amongst the worst impacted due to the Covid – 19 outbreak. We expect the company to out performance the sector. Rupee depreciation to help company's topline and bottomline positively. Post recent correction stock is available at reasonable valuations.
9/16

L&T Infotech | Rating: Accumulate | LTP: Rs 1,842 | Target: Rs 2,038 | Upside: 10 percent. The company has a very strong exposure to the BFSI & manufacturing verticals which accounts for 45% and 17.5% of the company’s revenues and are amongst the least impacted vertical due to the shutdown on account of COVID-19. The company doesn't have a very large exposure to service oriented verticals like travel & Tourism which are amongst the worst impacted due to the COVID–19 outbreak. We expect the company to outperformance the sector. Rupee depreciation to help company's topline and bottom-line positively. Post recent correction stock is available at reasonable valuations.

Britannia Industries | Rating: Accumulate | LTP: Rs 3,435 | Target: Rs 3,550 | Upside: 3 percent. The company has an overall distribution reach of 5.5 million outlets. It has narrowed the gap with the No. 1 player. The gap with the largest distributed brand is now just 0.8 million outlets which it expects to bridge soon and thereby become the largest player over the medium to long term.
10/16

Britannia Industries | Rating: Accumulate | LTP: Rs 3,435 | Target: Rs 3,550 | Upside: 3 percent. The company has an overall distribution reach of 5.5 million outlets. It has narrowed the gap with the top player. The gap with the largest distributed brand is now just 0.8 million outlets which it expects to bridge soon and thereby become the largest player over the medium to long term.

Reliance Industries | Rating: Buy | LTP: Rs 1,520 | Target: Rs 1,748 | Upside: 15 percent. Reliance Industries (RIL) is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players. Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
11/16

Reliance Industries | Rating: Buy | LTP: Rs 1,520 | Target: Rs 1,748 | Upside: 15 percent. Reliance Industries (RIL) is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players. Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

PI Industries | Rating: Buy | LTP: Rs 1,582 | Target: Rs 1,784 | Upside: 12 percent. It is a market leader in fast growing custom manufacturing space catering to lading agrochemical companies globally.
12/16

PI Industries | Rating: Buy | LTP: Rs 1,582 | Target: Rs 1,784 | Upside: 12 percent. It is a market leader in fast growing custom manufacturing space catering to lading agrochemical companies globally.

Galaxy Surfactants | Rating: Buy | LTP: Rs 1,362 | Target: Rs 1,610 | Upside: 18 percent. It is a leader in surfactant business catering to the FMCG space with increasing share of speciality care products.
13/16

Galaxy Surfactants | Rating: Buy | LTP: Rs 1,362 | Target: Rs 1,610 | Upside: 18 percent. It is a leader in surfactant business catering to the FMCG space with an increasing share of speciality care products.

Aarti Industries | Rating: Buy | LTP: Rs 981 | Target: Rs 1,284 | Upside: 30 percent. Aarti Industries is well diversified across product, customer, geography and end user industry. Significant opportunity for Aarti will arise from environmental related issues in China and companies looking to diversify supply chains.
14/16

Aarti Industries | Rating: Buy | LTP: Rs 981 | Target: Rs 1,284 | Upside: 30 percent. Aarti Industries is well diversified across product, customer, geography and end user industry. Significant opportunity for Aarti will arise from environmental related issues in China and companies looking to diversify supply chains.

Hindustan Unilever | Rating: Accumulate | LTP: Rs 2,106 | Target: Rs 2,364 | Upside: 12 percent. Hindustan Unilever (HUL) is engaged in manufacturing of branded and packaged FMCG products. Going forward, Angel Broking expect company to report healthy bottom-line growth due to healthy volume growth on the back of strong brand, wide distribution network.
15/16

Hindustan Unilever | Rating: Accumulate | LTP: Rs 2,106 | Target: Rs 2,364 | Upside: 12 percent. Hindustan Unilever (HUL) is engaged in manufacturing of branded and packaged FMCG products. Going forward, Angel Broking expect company to report healthy bottom-line growth due to healthy volume growth on the back of strong brand, wide distribution network.

Dr Reddy's Lab| Rating: Accumulate | LTP: Rs 3,950 | Target: Rs 4,570 | Upside: 15 percent. Dr Reddy’s has a very strong product portfolio with 55%-65% of it’s revenue coming from it’s chronic which is a high growth segment and will be least impacted due to lockdown globally. The company also has a very diversified geographical spread with the US accounting for 38% of revenue followed by RoW (26%), Emerging markets (19%) and India (17%).
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Dr Reddy's Lab | Rating: Accumulate | LTP: Rs 3,950 | Target: Rs 4,570 | Upside: 15 percent. Dr Reddy’s has a very strong product portfolio with 55%-65% of its revenue coming from it’s chronic which is a high growth segment and will be least impacted due to lockdown globally. The company also has a very diversified geographical spread with the US accounting for 38% of revenue followed by RoW (26%), Emerging markets (19%) and India (17%).

First Published on Jun 2, 2020 11:03 am
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