Updated : 2020-11-12 17:11:22
In the new Samvat, investors need to look at asset class diversification, sector diversification, spreading investments over time. All in all, after a turbulent past year, we can look forward to a relatively sedate but selectively rewarding year, HDFC Securities said. Here are top large-cap Diwali picks by the brokerage:
Infosys | TP: Rs 1,205 | HDFC Securities remains optimistic on Infosys’ revenue and profitability trajectory as well as cost rationalisation efforts with robust execution capabilities, robust balance sheet, steady growth momentum going forward.
CICI Bank | TP: Rs 503 | Despite the challenging environment, the brokerage thinks ICICI Bank can deliver up to 11 percent CAGR growth in NII and 50 percent in net profit over FY2022E. Margins and asset quality may remain stable over the same time frame, the brokerage said. After stake sales and QIP, the capital positioning of the bank will improve significantly.
Bharti Airtel | TP: Rs 597 | The brokerage house remains optimistic about Bharti Airtel’s revenue and profitability trajectory as well as cost rationalisation efforts going forward. It expects to see ARPU at a range of Rs 165-170 in FY21E and Rs 175- 180 in FY22E.
Cadila Healthcare | TP: Rs 508 | Domestic and Wellness businesses should grow in high single digits and low-mid teens, respectively. The stabilization in the price erosion in the US generics business coupled with a strong pipeline would drive growth in the US business, HDFC Securities said.
United Spirits | TP: Rs 645 | United Spirits has been severely impacted by the pandemic due to the government restrictions. As the company is the market leader, it’s expected to recover faster than peers on the back of the recovery in trade business, increase in at-home consumption, festive season sales, resumption in duty-free sales, and benign commodity inflation.
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