Bull run continued for the 5th consecutive day in the stock market riding on the announcements made in Budget 2021. On Friday, the Sensex crossed the 51,000 mark in intraday. At the same time, for the first time, Nifty also managed to cross the 15,000 figure. Since the budget, the Sensex has gained about 4500 points so far. The Sensex and Nifty have gained more than 9% this week. More companies listed on the stock market have released the December quarter results. As such, Sharekhan, one of the country’s best-known brokerage firms, has selected stocks of 10 companies that have released their Q3 results and is expected to grow 15% to 32% by the end of FY2022. Here are Sharekhan’s top 10 pics …
Ipca Laboratories: Sharekhan has set a target price of Rs 2,560 for this company’s stock and expects that the company will give 32% returns to its investors in a very short time. Currently, its share price in the stock market is Rs 1,936.10. The company’s Active Pharmaceutical Ingredients (API) business has seen tremendous demand, which is likely to continue. Apart from this, the company is setting up a new plant of 50MT capacity in Ratlam, Madhya Pradesh, which will be operational next year.
Gujarat Gas: The brokerage firm has set a target price of Rs 500 for Gujarat Gas shares. Currently its share price is Rs 379.75. Sharekhan believes that its shares can give 31% returns to investors in a year. The company’s earnings estimate brokerage firm has increased for FY21-23 due to increasing share in industrial PNG and growth in volume. It is expected that the company’s profit after tax can be 23% CAGR. Because of this it will prove beneficial for investors.
HPCL: Stocks of Hindustan Petroleum Corporation Limited have been given buy ratings by Sharekhan and the target price of its shares has been fixed at Rs 275. The brokerage firm says that its shares can give more than 22% returns to investors in a few days. Currently its stock is priced at Rs 225.30. Increased fuel market share has led to a tremendous growth in volume of the company, due to which the brokerage firm has extended HPCL’s FY2021 earnings. Sharekhan has picked it up due to the company’s attractive valuation and healthy dividend yield.
PNC Infratech: The brokerage firm has set a target price of Rs 300 for the stock of PNC Infratech. Currently its share price is Rs 244.75. Sharekhan believes that its shares can give 22% returns to investors in a year. PNC Infratech is the best pick in road development. The company has benefited the most in the construction of road infrastructure due to healthy balance sheet, strong order book and excellent capital management. In the recent budget, the company will benefit tremendously from the massive announcements of road infrastructure. Because of this it is included in the top 10 pics of Sharekhan.
Trent: Sharekhan has set a target price of Rs 825 for Trent’s stocks. The company’s shares are currently trading at a price of Rs 686.70. The brokerage firm expects its shares to give investors a 20% return this year. The brokerage firm has increased the company’s earnings estimates by 10-12% for FY22. The company’s business has recorded a faster recovery than expected and the company has done tremendous work in the field of innovation and supply chain. Also, it has expanded its store and has also increased digital presence, which will benefit its investors. It has also been supported by a strong brand, stable cashflow and strong balance sheet in the retail sector.
KPR Mill: Stocks of KPR Mill have been given buy (buy) ratings by Sharekhan and its price has been set at Rs 1,100. The brokerage firm says that its shares can give more than 19% returns to investors in a few days. Currently its stock is priced at Rs 921.95. The brokerage firm has increased its earnings estimates by 9.4%. The company’s garment division has grown in sales and the company has also grown in capacity, which is expected to grow rapidly. Because of this, Sharekhan has picked it up.
Cadila Healthcare: The target price of Cadila Healthcare shares has been set by Sharekhan at Rs 560 and it is expected that the company will give 18% return to its investors in a very short time. Right now its share price in the stock market is Rs 475. Net profit of the company increased in the December quarter of this financial year. Also, the company is expected to grow in India and America. In the US, the company’s focus is on specialty and generics products, as well as in India the company is working on new launches. Because of this, Sharekhan has picked it up.
Hero MotoCorp: The brokerage firm has set a target price of Rs 4,030 for Hero MotoCorp’s stock. Currently its share price is Rs 3,428.30. Sharekhan believes that its shares can give 17% returns to investors in a year. The brokerage firm said that there remains strong demand in the two-wheeler segment which is likely to increase further with the economic recovery. Hero MotoCorp will be the biggest beneficiary of the huge demand for bikes in rural areas of the country and Tier 2 and Tier 3 cities. Sharekhan has increased Hero MotoCorp’s estimate of earnings estimates and EBITDA margins.
Mahindra and Mahindra: Stocks of Mahindra & Mahindra (M&M) have been given Buy (Buy) ratings by Sharekhan and set a target price of Rs 1,000 for its stock. The brokerage firm says that its shares can give more than 15% returns to investors in a few days. Currently its stock is priced at Rs 865.60. The brokerage firm believes that its leadership position in the tractor segment and its strengthening position in the LCV segment, as well as the company’s good growth in the UV segment, will greatly benefit its stocks. Also, M&M has focused on the electric vehicles () segment by exit from loss making companies. The company has taken concrete steps to bring Return on Equity (ROE) to 18%.
Honeywell Automation India: Sharekhan has set a target price of Rs 48,200 for Honeywell Automation stocks. The company’s shares are currently trading at a price of Rs 41,948.80. The brokerage firm expects its shares to give investors 15% returns this year. The government plans to accelerate the development of airports and smart cities in the next 5 years. Honeywell Automation will benefit the most from this. Programs such as RERA, Self-reliant India and Industrial Internet of Things will provide considerable support to the company.