With the resiliency of the Indian economy in FY13 visible in most high-frequency indicators, domestic brokerage and research firm Axis Securities has suggested six stocks that investors should consider buying as part of their festive thoughts. Might consider, as it believes the stocks are well-established as beneficiaries of strong festive demand.
Top Festives of Axis Securities stock picking ,
Maruti Suzuki: The brokerage expects demand spurt from new launches coupled with upgradation of existing product portfolio, moderation in commodity inflation and rectification of ECU constraints to improve margins.
“The expected shift towards petrol, CNG and hybrid vehicles will enable the company to gain more market share. Considering the current order book, we expect the company’s volumes to see a strong growth post H2FY23,” the note said. Buy on auto stock with target price of brokerage 9,801 per share.
Bajaj Finance: According to Axis Securities, the company’s digital initiatives and business transformation are significant positives to look forward and are currently progressing well with a sequential improvement in metrics, which has maintained its buy tag on the stock with a target price of Rs. . 8,250 per share.
SBI Card: “Strong business momentum, improved NIM, and muted credit cost will help SBIC deliver better ROA/ROE of 6-6.3%/27-28% in the medium term. RBI’s proposal to integrate RuPay credit cards with UPI is structurally positive for the credit card industry as it will help in increasing the acceptability of credit cards among UPI merchants. With over 1 million RuPay cards, SBIC should be a major beneficiary of the offer,” it said while recommending buy on the stock with a target price of Rs. 1,050/share.
Trent: According to the brokerage, superior store metrics, supply chain optimization, diligent focus on cost rationalization, aggressive store expansion, high contribution from private brands, and innovative offerings in the value space will be key growth drivers in the long run. It has obtained a Buy rating on the stock with a target of 1,530.
Relaxo: “We believe that value players like Relaxo and V-Mart should see an improvement in earnings and profitability as rural and small towns gain market share from small/unorganized players as well as quality value offerings in rural and small towns. Continuous demand for per-money products should improve. Strong festive season, and constant product additions. We recommend Buying with TP 1120.”
V-Mart: Axis Securities believes that value players like V-Mart should see improvement in earnings and profitability as rural and small towns recover along with gaining market share from small/unorganized players, providing quality cost-per-money Continuous demand for products, strong festive season and continuous product additions. Its buy rating on the stock comes with TP 3,350.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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