Diwali Samvat 2079 Recommendations

Diwali Samvat 2079 Recommendations

Diwali Samvat 2078 Performance

*High + Dividend

 

Outlook:

BPIL is a well-known brand in the decorative paints segment. The decorative and industrial business is looking good as the overall economy’s outlook is positive. The operating margins of the company is improving gradually and is at 15.3% in the Q1FY23. The TTM EPS of the company is at Rs. 9.7. Company is currently delivering the ROCE & ROE of 25.7% and 22.8% respectively. Hence, we recommend to buy the stock for the target price of Rs. 740 with the time horizon of 12 months.

 

 

Outlook:

HDFC Bank’s sound fundamentals, extensive distribution network, and agile operations enables it to be at the top among its peers. The financials of the bank are continuously increasing and the merger with HDFC Ltd. to further strengthen its leadership position. Its aggressive branch expansion plan will drive growth; management has maintained its guidance of adding 1000-2000 branches per annum. The Commercial and Rural Banking would be the key growth enabler given the vast untapped opportunity. On the performance front, HDFC bank shows EPS at TTM of Rs. 71.6 and at the current price of Rs. 1400 it is trading at 20x. We recommend to buy the stock for the target price of Rs. 1650 with the time horizon of 12 months.

 

Outlook:

MSIL is India’s largest vehicle manufacturer and supplier with almost 41 years of experience. The chip shortage may ease in the coming months, allowing the company to clear its order book rapidly. The robust pending order-booking, easing of semiconductors supply constraints and planned new launches in Mid SUV segment to drive double digit volume growth. Benefit of price hikes, stabilizing of metals prices and operating leverage to result in sharp improvement in profitability. On performance front the company’s TTM EPS is Rs. 147. We recommend to accumulate the stock at Rs. 8200 to RS. 8400 for the target of Rs. 9800 for the time horizon of 12 months.

Outlook:

RFL is one of India’s most quality conscious and progressive footwear companies. A dominant player in the open footwear segment with wide distribution reach, competitive pricing, and strong brand recall, renders it an edge over the unorganized footwear market. The e-commerce channel is gaining momentum gradually and managements’ plans to grow the exports by 20-25% on the low base would contribute to the revenue growth. The TTM EPS of the company is at Rs. 9.7 at the end of Q1FY23. Hence, we recommend to buy the stock for the target price of Rs. 1220 with the time horizon of 12 months.

Outlook:

Electrification, automation and digitalization are the long-term growth fields of Siemens. The penetration of automation & digitisation products and services across segments will drive long term growth for the company. The order book of the company is at the all-time high level of close to Rs. 17,000 crores. Various PLI schemes announced for the industries in which company operates will also benefit the company in the longer horizon. Siemens is delivering the EPS of Rs. 34 at the TTM basis. We recommend to buy the stock for the target price of Rs. 3200 with the time horizon of 12 months.

Outlook:

The outlook remains positive on SPIL on the back of sustained scale-up in the specialty portfolio, robust franchise building in the branded generics portfolio, and healthy ANDA pipeline awaiting approval. Company ranks no. 1 in India with 8.5% market share in generic business as of June 2022. The specialty revenue growth has been impressive at an average of 30.0% YoY over the last four quarters. The company has another four new drug application molecules undergoing trials. The TTM EPS of Sun Pharma is Rs. 16; ROE and ROCE is 14.5% and 18% respectively. Hence, we recommend to buy the stock for the target price of Rs. 1200 with the time horizon of 12 months.

Outlook:

TCL has been reporting solid performance consistently despite a challenging environment this adds on to the optimistic view about continued soda ash demand across geographies, which will boost the Revenue. The ongoing global soda ash shortage globally will further improve realisations through heightened pricing. The management expects the positive momentum to continue in the near to short term and aims to leverage digitalisation for further growth. TCL is trading at 19 times at the current price level of 1160; TTM EPS is at Rs. 61. We recommend to buy the stock for the target price of Rs. 1380 with the time horizon of 12 months.

 

Outlook:

Tata Power is expanding its business portfolio across renewables, transmission and distribution, as well as customer centric businesses of Solar Rooftops, Solar Pumps, and Micro grids, EV charging, Energy Services (ESCO), Home Automation and Floating Solar. The company’s focus to shift from a B2G to B2C model would drive robust earnings growth over the next 4-5 years. Higher imported coal prices to lead to improved profitability from the company’s Indonesian mines. The company’s renewables and distribution business makes it the best private player in the sector. Currently Tata Power is trading at the PE of 32x and BV of 3x at the current price of Rs. 215 on TTM basis. Hence, we recommend to buy the stock for the target price of Rs. 280 with the time horizon of 12 months.

 

Outlook:

UTCL, the leading company in the cement industry offers strong growth momentum because of its capacity utilization and better cost management.  Company is structurally improving its cost structure by increasing its green power usage. The management of the company expects demand to grow at 8% CAGR in next 5 years and demand outlook stay positive on the back of increased government spending and positive outlook on real estate industry. On the performance front, the TTM EPS of the stock is at Rs. 250 and it trades at the PE of 24.7 at the current price level of Rs. 6200. Hence, we recommend to buy the stock for the target price of Rs. 7425 with the time horizon of 12 months.

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