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The recent fall in commodity prices and depreciation of the rupee against the US dollar is likely to benefit Bajaj Auto, India’s No.1 motorcycle exporter. "Management expects demand to gradually pick up with the economy reviving and BAL would focus on normalising its dealer stock in Q2 which has fallen to ~3 weeks as compared to normal levels of ~6 weeks," HDFC Securities said.

Bharti Airtel enjoys industry-leading average revenue per user (ARPU) of Rs 183 with a 25% gain in one year and the company expects another tariff hike in 2022. However, regulatory and policy changes besides competitive pressures remain key concerns going ahead.

CDSL has been witnessing strong momentum in transaction revenue in the past few quarters, driven by retail activity (online brokers) and pledge income, continued gains market share (stood at ~71% as of Q1FY23), and sustained growth in annual issuer charges (annuity income), driven by BO accounts addition and unlisted opportunity. HDFC Securities said the growth of the business of depositories is directly proportional to the growth of capital markets.

HPCL’s FY23-FY24E capex stands at ~Rs 22400 crore and the company has guided that ~30% of its investments in the next five years would be channelized in non-traditional businesses including chemicals, green hydrogen, wind, power, solar energy, etc. Completion of various ongoing projects will drive growth over the next 3-5 years, HDFC Securities said.

The company is expanding both downstream and upstream to raise its aluminium capacity as well as the share of value add products, which will eventually reflect in an improved EBITDA margin. The positive demand outlook on Novelis’ key end market segments (cans and auto) and the upward revision to EBITDA/t guidance in this quarter do provide comfort on future cash flow generation, the brokerage said.

"We like ICICI Bank because of its strong balance sheet with granular, sticky liability base, lower stress levels, industry best PCR (Provision Coverage Ratio) and adequate CAR (Capital Adequacy Ratio). Its subsidiaries which are leaders in their respective fields add strong value to the overall valuation," HDFC Securities said.

At ~20x FY24E EPS, ITC trades at a steep discount to the FMCG sector. Besides, its 4-5% dividend yield makes it more attractive. The company is one of the leading FMCG companies in the country and, at these valuations, there is limited downside risk, and the risk-reward ratio despite the recent run-up in the share price is favourable for ITC, brokerage said.

The impact of wage revision in Q2FY23 and other margin headwinds could be offset by improving utilisation, absence of visa expenses, and acquisition-related costs. Further, the margin is expected to improve in H2FY23, aided by increased utilisation rate, decreased subcontracting costs, pyramid balancing, lower ESOP expenses, and currency tailwinds.

Reliance forayed into the new energy business in FY22 to focus on renewable and clean energy. Reliance Jio subscriber addition post churn and regular tariff hikes could bring strong revenue visibility going forward, analysts say.

SBI's asset quality improved marginally in Q1FY23 and slippages were lower than the historical average. Given the positive asset quality outlook, credit cost is expected to remain benign and aid RoA recovery.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)