Earlier this week, Axis Securities in its report said, festivals are times that bring life into a state of excitement, create mind space and good vibes among all of us and create an overall environment for demand creation. Customize it, especially for consumer products. In Economy,
“After witnessing two silent years, which were intermittently affected due to the Covid-19 disruptions, the festive spirit has finally returned to its pre-eminent.covid Level. This year, the enthusiasm has picked up again and economic activities are gaining momentum, thanks to the massive immunization drive undertaken by the Government of India (which crossed the remarkable milestone of 213 crores as on 4 September 22),” Report added.
According to Axis Securities, several catalysts are creating renewed enthusiasm in the air. These are:
1. Significant resilience of the Indian economy in FY13, with growth visible in most high-frequency indicators.
2. Significant resilience of the Indian economy in FY13, with growth visible in most high-frequency indicators.
3. Improvement in urban demand along with rural demand is on the verge of recovery as a normal monsoon is instilling confidence in rural India to improve demand.
4. Fully functioning contact-intensive service sectors such as travel and tourism, hotels, schools and colleges post COVID 3.0. In addition, all public transport systems such as air, rail and bus are now fully operational, leading to a rapid and resilient recovery in economic activity.
5. Remittances (major contributor to rural income) are likely to return to pre-Covid levels with pick-up in service sectors.
6. Easing supply chain conditions and cool-off in commodity prices, providing relief from high inflation. In this context, the market narrative has shifted from inflation concerns to a cool-off on inflation expectations in the next one or two quarters.
Based on the above themes, Axis Securities Note said, “We recommend the following stocks which are well placed for the beneficiaries of strong festive demand: Maruti; Bajaj Finance; SBI Cards; Trent, Relaxo; V-Mart “
These six stocks are seen as long term wealth creators. The time frame of Axis Securities for these shares is 6-9 months.
These six stocks are Axis Securities’ top picks for the festive season:
maruti suzuki
Shares of Maruti Suzuki closed on BSE above 8,945.70 158.05 or 1.80% on Friday. The market cap of the company is approx. 2,70,231.76 crores.
Shares have gained at least 31.5% in one year. shares were around 6,801 each on September 9 last year. Its sales grew 50.52% year over year 25,286.3 crores. revenue from operations 26,499.8 crore, up 49% YoY for the quarter under review, however, down 0.8% QoQ.
For the June 2022 quarter, the company posted a net profit of 129.76 percent increase as compared to 1012.8 crore 441 crore in the same quarter last year.
Axis Securities has a Buy Rating with a target price of 9,801 each on stock.
Bajaj Finance
NBFC shares closed on Friday 7,183.55 down one by one 74.45 or 1.03% on BSE. The market cap of the company is approx. 4,34,913.12 crore.
Bajaj Finance has had a volatile year and has underperformed a little over 3% compared to last year’s September 9 levels. However, the shares have made a strong recovery in the last three months with gains of around 22%.
Bajaj Finance sees a strong quarter of June 2022 (Q1FY23), with net profit up 159% 2,596 crore as compared to 1,002 crore in the same quarter last year. Net Interest Income (NII) up 48% 6,638 crore in the quarter under review from 4,489 crore in Q1FY22. During Q1FY23, new loans booked grew 60% to 7.42 million as against 4.63 million in Q1FY22.
Axis Securities sets target price of 8,250 each on stock.
SBI Card & Payment Services
SBI Card shares closed on BSE 943.60 each recorded a fall of 1.69 per cent on Friday. The market cap of NBFCs is approx. 89,011.67 crore.
However, the stock has lost about 15% in one year. However, this year the stocks have made a strong recovery in the last three months and have gained over 22 per cent.
During Q1FY23, SBI Cards registers a growth of 105.80% in net profit 626.91 crore as compared to 304.61 crore in the same quarter last year. stood on revenue from operations 3,100 crore in Q1FY23 growing at 31% yoy and 9% qoq. came in interest income 1,387 crore in the first quarter of this financial year, a growth of 20% year-on-year and 10% on a quarterly basis.
Axis Securities has given a target price of 1,050 per.
trent
Trent shares closed on BSE 1,379.35 each, down 1.98%. The market cap of the company is approx. 49,034.16 crore.
The shares have gained about 35 per cent in one year.
In the first quarter of FY23, the company reported a consolidated net profit of 114.93 crore against loss of 138.29 crore in the same period last year. was on revenue from operations 1,803.15 cr – Strongly . at over 491.99 crore in Q1FY22.
Axis Securities has given a target price of 1,530 each on stock.
Relaxo Footwears
Shares of Relaxo Footwears closed on BSE There was a marginal increase of 1,012.90 each on Friday. The market cap of the company is approx. 25,213.72 crores.
Over the past three months, the shares have gained about 3%.
During Q1FY23, the company made a net profit of 38.67 crore vs. 30.96 crore in Q1FY22. was on revenue from operations 667.15 crores. more than 497.13 crore views in Q1FY22.
Axis Securities has given a target price of 1,120 each on stock.
v mart
Shares of V-Mart closed on BSE by 2904.30 up 8.35 or 0.29% on Friday. The market cap of the company is approx. 5,741.33 crores.
In Q1FY23, the company posted a net profit of 20.45 crore against loss of 28.71 crore in Q1FY22. stood on revenue from operations 587.88 crore in Q1FY23 as compared to 177.41 crore in Q1 of FY22.
Axis Securities has given a target price of 3,350 each on stock.
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