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Domestic brokerage and research firm Angel One Ltd has recommended top picks from different sectors that include 16 stocks such as HDFC Bank, Federal Bank, HCL Technologies, Oberoi Realty, AU Small Finance Bank, Suprajit Engineering, among others.
The brokerage house has ‘Buy’ ratings on Suprajit Engg with a target price of ₹485, Stove Kraft (TP: ₹805), AU Small Finance (TP: ₹848), Sona BLW Precision Forgings (TP: ₹843), Amber Enterprises (TP: ₹3,850).
The brokerage believes Suprajit Engg's premium valuations are justified in its opinion owing to its strong outlook and top-grade quality of earnings. For Stove Kraft Ltd, its expect the company to report healthy top-line & bottom-line growth on the back of new product launches, a strong brand name, and a wide distribution network.
“Sona BLW's combined motor and driveline capabilities have enabled them to gain market share across its products, especially for products related to EV/BEV. Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by ~49% earnings CAGR over FY21-24E," the note stated.
Meanwhile, it also has bullish stance on Sobha Ltd (TP: ₹850), Ramkrishna Forgings (TP: ₹256), HCL Technologies (TP: ₹1,192), Jubilant Ingrevia (TP: ₹700), Deyani International (TP: ₹255), Oberoi Realty (TP: ₹1,208), and Marico (TP: ₹600).
For Ramkrishna Forgings, the brokerage believes that the company has phased out its CAPEX over the past few years during which it was impacted by industry slowdown in certain periods. With the end to the CAPEX cycle, the favorable outlook in the medium term, and sufficient capacity in place, it believes RKFL volumes would be able to post a volume CAGR of 29% over FY21-23E.
Whereas, it has accumulate ratings on Federal Bank shares with a target price of ₹138, HDFC Bank (TP: ₹1,700), and P I Industries (TP: ₹3,700) as part of its top stock picks.
PI Industries' foray into new segments like electronic chemicals and APIs will also help drive growth over the next 3-4 years for the company, as per Angel One.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.