Sharing its DIY SIP stock picks, domestic brokerage and research firm HDFC Securities said that its recommended stocks can be bought through the Systematic Investment Plan (SIP) route for a minimum period of 6-12 months.
The brokerage house has recommended twelve stocks for lifts up Joe Aegis Logistics, Bajaj Auto, Bharti Airtel, Central Depository Services Limited (CDSL), Hindustan Petroleum Corporation Limited (HPCL), Hindalco Industries, ICICI Bank, ITC, Persistent Systems, Reliance Industries (RIL), State Bank of India (SBI) Huh. ), and Thermax.
“Aegis Logistics’ (ALL) Liquid division continues to report strong performance, driven by near-perfect utilization and we expect the strong trend to continue in the near to medium term. Moderate to capacity additions led by expansion programs This will lead to increase in volume as well as profitability in the long term,” the note said.
Hindalco is expanding its aluminum capacity as well as downstream and upstream to increase its share of value-added products, which will ultimately be reflected in a better EBITDA margin. According to HDFC Securities, positive demand outlook on key end market segments (Can and Auto) of Novelis and upward revision to EBITDA/T guidance in this quarter provide comfort on future cash flow generation.
“HPCL has reported refinery utilization levels above 100% over the years. Capacity utilization declined in FY22 due to a fire at one of the crude distillation units at Visakhapatnam refinery and closure of Mumbai refinery for capacity expansion. Going forward, with the completion of Visakhapatnam capacity expansion and residue upgradation project, the scale and cash flow is expected to improve.”
Meanwhile, for Persistent Systems, the brokerage expects the impact of the wage revision in Q2FY23 and other margin headwinds to be offset by improvements in utilization, absence of Visa expenses and acquisition-related costs. The company is focusing on better realization in new contracts and higher pricing in some renewals and new contracts.
“It has a strong balance sheet with a healthy cash position that provides investment opportunities in new energy technologies such as hydrogen. Industrial sectors such as steel, power, sugar, F&B and chemicals have registered growth. Better prospects of getting orders from steel, chemical and refinery and petrochemical sectors will give further boost to companies like Thermax.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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