REC, TCS among top 10 Budget picks by SBI Securities with upside potential up to 20%

CMP: Rs 2,152 (as of Tuesday’s closing)

Target price: Rs 2,583
Upside potential: 20%

At CMP, the company is trading at a discount of 79% to the value of its shareholding in Britannia Industries. SBI Securities believes this discount will narrow to 70%-75% in the medium term which provides an upside potential of 20%-45%.

CMP: Rs 4,302.50 (as of Tuesday’s closing)

Target price: Rs 4,828
Upside potential: 12.2%

TCS displayed a strong Q1 performance and FY25 seems to be a better year of growth. With the wage hike well digested, the company’s deal pipeline also stands strong at $8.3 billion.

CMP: Rs 382.35 (as of Tuesday’s closing)

Target price: Rs 455
Upside potential: 19%

SBI Securities remains positive on the growth prospect of NTPC as power demand in India continues to grow at 6% per year which may lead to more thermal capacity addition to meet the medium-term demand. The company also aims to monetize their RE assets via IPO or strategic sale.

CMP: Rs 595 (as of Tuesday’s closing)

Target price: Rs 684
Upside potential: 15%

The company is well poised to deliver strong advance growth led by the sectoral push by the government on the renewable front. Strong recovery pipeline of written off assets will help the co

CMP: Rs 5,512 (as of Tuesday’s closing)

Target price: Rs 6,340
Upside potential: 15%

Earnings are expected to be driven by healthy volume growth and margin expansion through a premium portfolio.

CMP: Rs 553 (as of Tuesday’s closing)

Target price: Rs 645
Upside potential: 17%

Given the company’s consistent strong performance and asset light strategy yielding results, the stock is currently trading at reasonable PE multiples.

CMP: Rs 770 (as of Tuesday’s closing)

Target price: Rs 885
Upside potential: 15%

SBI Securities expects a healthy rebound in the loan book growth in FY25E. Further, Lower credit costs and improvement in operational efficiency are expected to aid RoA improvement.

CMP: Rs 1,546 (as of Tuesday’s closing)

Target price: Rs 1,758
Upside potential: 14%

Amara Raja is a play on the fast growing automobile sector in India and is well prepared for gradual shift towards Li-On battery

CMP: Rs 4,619 (as of Tuesday’s closing)

Target price: Rs 5,504
Upside potential: 19%

A strong order book, huge business opportunity and the company being a market leader in metro coaches segment provide an investment rationale for the stock.

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