Brokerage house SMC Global said in a report that with expectations of a strong recovery in corporate earnings, the Indian market is in a position to continue its uptrend. As part of its Diwali stock picking Considering for Samvat 2078, the brokerage has recommended nine stocks which include ICICI Bank, State Bank of India (SBI), Larsen & Toubro (L&T), and DLF.
Endurance Tech, Prestige Estates, Welspun India, KEC International, Philips Carbon are also part of its top recommendations.
“One of the key rules of investing in a bull market is the gradual shift towards quality stocks. “It is an opportune time for investors to transform their portfolios by selectively buying on dips strategy in quality stocks,” SMC Global said in a note.
Top Stock Picks for Diwali –
State Bank Of India: State Bank of India is well positioned to report strong growth in earnings on account of reduction in credit cost from FY12 onwards. Near Brokerage. Have a Buy rating on the stock with a target price of ₹577 in a time frame of 8 to 10 months.
ICICI Bank: The bank is focusing on increasing core operating profit in a risk-calibrated manner rather than loan growth. Thus, “It is expected that the stock will see a target price of Rs 874 in the time frame of 8 to 10 months.”
L&T: The company will maintain leadership in the E&C segment in India, and is well positioned to benefit from large infrastructure spends in India in the medium term. The target price of SMC is ₹2120.
DLF: The company has maintained its operations despite being hit by the second Covid-19 wave. Comes with a target price of buy rating ₹474.
Endurance Tech: “A strong balance sheet and liquidity position enable the company to proceed on its growth journey without any compromises and the government announced various schemes to strengthen the automobile sector and give a much needed boost,” the note said. SMC has a price target of ₹2,047 in a time frame of 8 to 10 months.
Welspun India: Buy rating with a price target of ₹The brokerage said the 193 comes as the company remains committed in its long-term aspiration to deliver sustainable and profitable volume growth.
Prestige Estates: “Despite the challenging environment, Prestige has achieved highest quarterly sales and collections. New sales were supported by a healthy response to its newly launched project, Prestige Great Acres, and existing inventory across geographies. Thus, it is expected that the stock will see a price target of ₹529.”
KEC International: According to the brokerage, the company is performing well and the management believes that T&D in the domestic, railways and civil segments will be the key drivers of growth. Thus, it is expected that the stock will see a price target of ₹555 in 8 to 10 months.
Philips Carbon Black: “A steady pace of road construction as well as improved freight traffic, the government’s focus on infrastructure, and continued e-commerce demand, could see a rapid volume growth in mining activities, aided by the prospects for import substitution. . buy one with a target price of ₹294.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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