“The market has seen a growing investor base and shows resilience despite macro and short-term challenges and we are confident that it will continue to provide bountiful investment opportunities,” Samco Securities said in a note. And recommended 10 shares for Samvat 2078. The portfolio comprises a mix of large and quality midcap stocks.
“Investors can invest in these 10 recommended stocks keeping in mind their liquidity and risk appetite,” the brokerage said.
Samvat 2078: SAMCO recommends 10 stocks and what it says in the report:
Metropolis Healthcare Limited
“The metropolis could be on track to post strong double-digit growth in the next two years driven by changes in demographics, increased precautionary testing and the government’s healthcare push. With an ROE of 30% and ROCE of 36%, one of the highest among peers and the lowest leverage as evidenced by its debt-equity ratio of 0.16, the company boasts of a strong balance sheet. Growing contribution from the margin-enhancing B2C segment, planned network expansion over the next 3 years, higher sales and patient volumes than competitors, and cost optimization practices have made it a great prospect for investors in the long term.
Asian Paints
“The company has been a consistent wealth maker for more than 5 years now with an average ROE of 28% and ROCE of 39% for its stakeholders. The company’s gross margins have been impacted in the recent quarter mainly due to increase in crude oil and chemical prices. However, the company is confident of increasing the prices of its products and maintaining its EBITDA margin in the range of 18-20%. With the transition from unorganized to organized players expected to fuel its medium to long-term growth in the segment, we remain positive on the paint-maker due to our strong portfolio mix coupled with a strong distribution channel.
ICICI Lombard General Insurance Company
“The insurer has not only delivered decent profit growth of 23.75% CAGR over the last 5 years but also maintained a healthy dividend payout of 21.33%. Its Gross Direct Premium Income has grown at a CAGR of 11.7 percent over the past 13 years. The company’s gap includes its strong brand, qualified management and healthy returns, which makes it a savior in an investor’s portfolio.”
cams
“Computer Age Management Services (CAMS) operates in a highly regulated Registrar and Transfer Agent (RTA) industry. It is a market leader in a monopolistic RTA market with a market share of 70-72% of the total mutual fund AUM. CAMS has maintained its leadership position since 2005-06 and outperformed the MF industry’s AUM growth of over 3% from March-14 to March-20. Compounding sales and profit in the last 10 years grew by 8% and 13, respectively Has a strong and consistent financial track record of growth of 12%.India has one of the lowest MF penetration globally with an AUM-GDP ratio of 12%, which is at a world average of 65%, this is itself a long-term prospect for the overall MF and RTA industry. Provides growth potential. Being a fundamentally strong company, CAMS has a huge potential to grow in India’s underserved mutual fund industry.”
Dabur
“The world is now recognizing the importance of Ayurveda increasing the inclination of a wider audience towards natural products. In the wake of the pandemic, the demand for Ayurvedic healthcare products has seen an increase, and Dabur, with its strong lineage and market position, strengthened With R&D capabilities and healthy financial metrics, it is a clear beneficiary. All these factors combined with its comparatively low beta make Dabur an attractive investment bet.”
Rosari Biotech
“Rosari Biotech is a specialty chemical manufacturer that caters to the home, personal care, textile specialty chemicals, and animal health and nutrition sectors. With a portfolio of 3,500+ products, the company’s revenue stream is well diversified and can be used for any segment. The largest textile specialty chemical maker is expected to close FY12, driven by rising demand for its offerings and substantial price hikes, which should ease the pressure on margins. Given a near-debt-free balance sheet, a healthy track record of ROCE and ROE, and strong profitability, the company’s growth outlook remains solid.”
HDFC bank
“Through increasing investments in technology, the Bank has also recently launched Project Future Ready to enable it to develop a future growth engine and improve the offering and delivery of services. On issuance of credit cards. The lifting of restrictions will also help its retail ambitions. With strong earnings visibility, improving credit mix, stable asset quality, HDFC Bank continues to be a resilient stock and an attractive investment opportunity in the segment.”
afle india
“Affle is a leading ad-tech company that helps enterprises drive user acquisition, engagement and transactions through contextual mobile advertising. It is the only listed stock in the sector in India. Over the last 4 years, the company has Has delivered strong financial performance in Revenue from Operations at 45% CAGR, 42% CAGR in EBITDA, 35% CAGR in Operating Cash Flow.The Management of the Company indicates the Operating Margins to be sustainable and at least 25% in the next 5 years Expects to deliver 30% revenue CAGR.”
Relaxo Footwears Limited
“The Company has grown its revenues and profits at a CAGR of ~9.3% and ~25% respectively for the last five years and maintained healthy ROE and ROCE of 21% and 27% respectively. Huge Growth Potential, Strong Balance The sheet and efficient working capital cycle make RFL a strong investment addition.”
LIC Housing Finance
“After a difficult phase during the first and second wave of Covid-19, India’s second largest pure-play mortgage lender, LIC Housing Finance Limited (LICHFL), is poised for a rebound. The recovery in the real estate sector is generating higher disbursements, which could translate into a gradual recovery in collections, which augurs well for LICHFL in the medium to long term.”
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