Indian equity markets have remained resilient so far this year despite the bearish tone in global markets. Going forward, domestic equities are expected to hold on to this resilience. Analysts believe that when bond and currency markets stabilize, equity markets will follow suit which is when the FII selling will peak out. Despite the globally gloomy situation amid high inflation and recession concerns, Yes Securities believes that India remains structurally positive, and is fast emerging as the fastest-growing market in the world. Analysts at the brokerage firm expect FII inflows to resume with renewed vigour. They picked Shree Cement, Greenply Industries, ICICI Prudential Life, Prestige Estates, V-Guard Industries, SBI, HCL Tech as their Diwali 2022 recommendations.
Yes Securities Diwali 2022 Muhurat stock picks
Target price: Rs 25,450| Upside: 20%
According to analysts, the company has a very robust balance sheet which gives it the headroom to grow its capacity aggressively. Its s net cash stood at around Rs 7400 crore and given the cash flow generation in FY23‐25, it is expected to still maintain a very healthy
position even after incurring a capex of Rs 7000 crore.
Target price: Rs 220| Upside: 24%
Analysts at Yes Securities strongly believe Greenply has the capability to make the most of the opportunities and carve a niche as a value‐added industry player. “With a healthy balance sheet and asset‐light approach to growth in certain product segments, we can expect GIL to deliver measurable value to all its stakeholders,” they said.
ICICI Prudential Life Insurance (IPRU)
Target price: Rs 650| Upside: 26%
According to the brokerage report, within private insurers, the industry is getting more polarized in favor of large players backed by India’s largest private banks and financial institutions. “They are better placed to make the most of the burgeoning sector opportunities, and we strongly believe IPRU enjoys a large runway for growth with all its levers in place,” it said.
Prestige Estates Projects (PEPL)
Target price: Rs 550| Upside: 25%
Analysts noted that the company has substantially improved its liquidity position on the books by concluding the Blackstone deal during the year, as also the stake sale of one of their office blocks to CPPIB, thereby setting the stage for next round of growth. “We are upbeat about PEPL’s continued high performance given the sustained pent‐up demand in the residential space, increased traction in leasing, and recovery in retail & hospitality,” they said.
Target price: Rs 301| Upside: 23%
While FY22 brought about challenges in terms of raw material prices surging which led to a contraction in its margins, the raw material price inflation appears to have cooled off from the peak and is likely to aid in gross margin improvement in FY23 and beyond.. “We have a positive stance on the stock as it has been able to deliver on revenue growth, focused on increasing proportion of in‐house manufacturing and premiumization in its growing product portfolio,” the brokerage said.
State Bank of India (SBI)
Target price: Rs 655| Upside: 24%
The State Bank of India is a key beneficiary of the systemic uptick in credit demand. The public sector lender has protected its asset/liability market share in the past 5 years, and with increasing signs of stronger corporate credit demand emerging, analysts at Yes Securities see SBI as one of the best-placed banks to ride the upturn.
Target price: Rs 1210| Upside: 20%
With a strong franchise and unflinching focus on momentum and growth, Yes Securities’ analysts strongly believe HCL will be able to deliver organic growth in capital‐efficient ways and ride the next phase of growth. “At the same time, it would be able to harness key disruptions and seize evolving opportunities,” they said.
*Upside calculated from 14 October 2022 closing price
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)