Diwali Top Picks: Top 5 stocks on Religare Broking hotlist for Samvat 2080
SBI Life Insurance, Axis Bank, Maruti Suzuki India, Tata Consultancy Services and ITC are among the top chart picks for Samvat 2080 from Religare Broking.
Tata Consultancy Services | Analysts believe from a medium-to-long-term perspective factors such as strong demand for newer technology, record order inflows, client willingness to commit for long-term deals and investment towards development of technology as well as up-skilling of employees will play out. Besides, improving margins and managing cost as well as the company’s focus continue on translating deals to revenue gives the confidence of revival. On the financial front, analyst estimated its revenue/EBIT to grow at 16.5/19.8% CAGR over FY23-25E. The stock price has seen decent correction post its Q2FY24 results, thus making its valuation attractive for investment. Revised rating to Buy from Accumulate while maintaining target price of Rs 4,089.
2/5
ITC | The company will continue its focus on the ITC Next strategy which would aid in building future ready portfolio as well as scaling up non-cigarettes business, specially FMCG, by innovating, renovating and premiumising products. Besides, the demerging hotel business is moving as per company’s plan which is positive. Overall, the growth prospects remain optimistic and financially estimated its Revenue/ PAT to grow at 15%/19.2% CAGR over FY23-25 and assign a 'buy' rating with a target price of Rs 535.
3/5
Axis Bank | Analysts remain positive on Axis Bank on the back of growing assets book, premiumisation of deposits, growing wealth management business and its market position in the credit card segment. The asset quality of the bank continues to remain robust. Also, the acquisition of the premium customers presents an opportunity for the bank to cross sell its other products. Analyst expect NII/ PPOP/PAT growth of 11%/15%/9% over FY23-25. Buy rating on the bank with a target price of Rs 1,167.
4/5
Maruti Suzuki India | With superior product mix and favourable commodity prices broking house anticipate, MSIL will continue to gain market share in its key pockets which will eventually aid in revenue growth. Financially, estimate its revenue/EBITDA/PAT to grow at a CAGR of 18.2%/34.9%/33.5% over FY23-25. From a valuation perspective it is currently available at an attractive valuation, with favorable risk to reward ratio. Hence, recommend a Buy with a target price of Rs 12,714, assigning a PE of 27x on its FY25 EPS.
5/5
SBI Life Insurance | Analysts remain positive on SBI Life Insurance on the back of strong growth in its core operations which enables the company to increase its market share. The company is rightly placed in the resurgence of ULIP products due to its higher proportions of such products in its overall product mix. Expect APE/NBP/VNB to grow at a CAGR of 19%/21%/23% over FY23-25. Buy rating on the company with a target price of Rs 1,644.
