Tata Group stock among 8 high conviction ideas for next few weeks

India’s leading finance company HDFC is a very attractive player in the country's real estate growth story. With the lowest interest rates in a decade, there is tremendous demand for homes across India and HDFC is the best play in the sector. The company has low non-performing assets (NPAs) as compared to the industry average and higher growth rates. The country’s demographic advantage plays an essential role in long-term investment play in HDFC.

(Brokerage: Centrum Broking)

Compared to other private sector banks SBI is trading at a lower valuation. The non-performing assets (NPAs) of the bank are reducing and it is comfortably placed to participate in the upcoming growth opportunities. The largest public sector bank has stakes in listed subsidiaries like SBI Life and SBI Card.
(Brokerage: Centrum Broking)

Considering the sharp improvement in asset quality, decline in provisions in its corporate loan book, large and secured retail loan book and adequate/excess Covid-related provision will help ICICI Bank to come to normalcy faster. Leading private sector bank also has stakes in other listed group companies like ICICI Lombard General Insurance, ICICI Pru Life and ICICI Securities.
(Brokerage: Centrum Broking)

The FMCG company represents a very good investment and trading opportunity. With a focus on strong brands and the backing of Tata group, Tata Consumer is poised for good medium-term growth. We expect consumer business to continue to grow in the near and medium term.
(Brokerage: Centrum Broking)

HCL Tech posted reasonable results in Q1 and has guided that growth momentum is likely to continue in coming quarters as well. With some pressure easing on the margin front, the coming quarter results should see margins returning slowly. The valuations are very attractive with exceptional dividend yield.
(Brokerage: Centrum Broking)

HDFC Bank is the largest private sector bank in India with a loan book of Rs 13.68 lakh crore in Q4FY2022 and a deposit base of Rs 15.6 lakh crore. The bank has a very well spread-out book with wholesale accounting for about 57 per cent of the asset book, while retail accounts for the remaining 44 per cent of the loan book. The bank reported a growth of 10.2/5.3 per cent in NII/PPOP for the quarter on account of loan growth of 20.8 per cent YoY. Restructured advances accounted for 1.14 per cent of advances at the end of the quarter.
(Brokerage: Angle One)

For differential gears for PV, CV, and tractor OEMs in India, the automotive technology company holds a market share of 55 to 90 per cent. The combined motor and driveline capabilities of Sona BLW have allowed them to increase market share across all of their products, particularly those linked to EV/BEVs. Given the popularity of BEVs and hybrid vehicles, Angle One believes that Sona Comstar will continue to command a higher multiple which is justified by about 49 per cent earnings CAGR over FY21-24E.
(Brokerage: Angle One)

The company intends to boost component income by expanding its product line, providing service to other regions, bringing on new customers, and exporting, which has already begun in the Middle East. The acquisitions made by Amber Enterprises over the previous two to three years will aid in the company's backward integration and enable it to enter new markets including the railway, metro, and defence. Angle One expects healthy profitability on the back of its foray into the commercial AC segment, entry into export markets, and participation in the PLI scheme.
(Brokerage: Angle One)


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