Reliance Industries, Motherson Sumi Systems, Gail India, Ipca Laboratories, Mahindra and Mahindra, Paras Defence, Zen Technologies, Tata Consultancy Services, Hero MotoCorp and Bharti Airtel are among the top 10 picks of CapitalVia Global Research.
Benchmark indices Sensex and Nifty rose over 20 percent each in the year 2021 led by the strong economic recovery . All the sectoral indices ended the year in the green with power and metal indices adding over 60 percent each. Here are the top ten chart picks by CapitalVia Global Research for the the upcoming year 2022.
2/11
Reliance Industries (RIL) | Target: Rs 2,850 | RIL's long-term potential and dominating position in each of its product and service portfolios give it confidence in creating long-term value. Going forward, RIL's consumer business will be the main engine of growth. Following the fund raising, the company's balance sheet is robust, and its traditional operation will continue to generate consistent cash flows. We also see incremental value accretion from the ‘digital ecosystem’ that will be captured at the Jio Platforms. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
3/11
Motherson Sumi Systems | Target: Rs 320 | We believe that the business will benefit from the industry’s product mix shifting towards hybrid cars and electric vehicles from internal combustion engines. Focus on higher content per vehicle to gain further traction.
4/11
Gail India | Target: Rs 170 | Gail is a beneficiary of increasing gas consumption and government’s focus to expand gas as a key energy transition fuel. Stable volume growth along with higher profitability from gas trading, and LPG segment due to higher oil & gas prices will add value. Gail India is planning to expand in petrochemicals, specialty chemicals and renewables to supplement growth in its core business of natural gas marketing and transportation.
Ipca Laboratories | Target: Rs 2,800 | Ipca Lab has strong volume growth in domestic formulation across products, cost competitive and consistent quality in active pharmaceutical ingredient (API) segments. The key therapeutic segments include cardiac, pain management, anti-malarial and anti-diabetic, anti-infectives. The company derived 46 percent of its revenues from the domestic market while 54 percent from international markets in FY21.
6/11
Mahindra and Mahindra | Target: Rs 1,100 | Mahindra and Mahindra, world’s largest tractor manufacturer and the third-largest passenger vehicle manufacturer in India, is targeting 10 times increase in the agricultural implements segment to drive growth in the medium term (by 2027).
7/11
Paras Defence and Space Technologies | Target: Rs 1,300 | It wants to take advantage of import substitution opportunities provided by the Indian government's Atmanirbhar Bharat and 'Make In India' programmes. As a result, we favor Paras because of its complex/wide product range, niche defense/space presence, strong customer relationships, and high entry hurdles. Given the government's strong emphasis on defence, the stock represents a solid chance for investors to participate in this niche market.
8/11
Zen Technologies | Target: Rs 300 | Zen Technologies has got a tremendous boost in manufacturing the drones after government’s recent drone incentive programme and relaxation in the laws of flying drones. The Indian government authorised Rs 120 crore production-linked incentive plan for the manufacture of drones and their parts over the next three years. We believe that Zen Tech being the leader in manufacturing drones in India. The government incentives would increase the order books and help the company achieve new heights in years to come.
Tata Consultancy Services (TCS) | Target: Rs 4,400 | TCS has formed a very solid client base and has increase its profits during the corona phase. Being the leader of the sector, we expect the momentum to continue and further growth in the company. We have seen the companies switch to digitalization and the IT sector has fully been benefited with this demand and we expect the demand to further continue in the market.
10/11
Hero MotoCorp | Target: Rs 3,200 | Hero MotoCorp is India’s leading two-wheeler manufacturer in terms of unit sales in a calendar year. It holds nearly 50% of the market share in the Indian motorcycle market. With the new development of the Electronic vehicles, the company is very well placed to be able to lead the market and use its current channel to grow in the coming times.
11/11
Bharti Airtel | Target: Rs 870 | Bharti Airtel is a good stock to hold for long-term. In past 15 years, company has successfully survived every difficulty in industry. The customer base has also steadily increased with QoQ despite the price hike recently which was followed by all the major telecom companies later. Bharti Airtel’s lower churn and strong network capability underscore the potential to see a similar healthy growth in the coming years as well.
