Indian stock market place benchmarks BSE Sensex and Nifty 50 surged practically one per cent on Monday, immediately after witnessing a correction of 2 per cent last week. Domestic study and brokerage firm Axis Securities has recommended shopping for six stocks — HUL, SBI Cards and Payment Services, Hero MotoCorp, Relaxo Footwear, Aditya Birla Fashion and Retail Ltd (ABFRL), and Safari Industries, as element of its festive tips. The domestic firm sees up to 20 per cent rally in these stocks on the back of festive season demand. Currently, S&P BSE Sensex sits at 59,295.82, and the NSE’s Nifty 50 index at 17,700 levels.
Stocks to obtain this festive season
Hindustan Unilever Ltd (HUL): The brokerage firm has offered a target of Rs 3,110 apiece, a 3 per cent rise from the earlier close. It likes Hindustan Unilever Ltd’s superior agility and nimbleness regardless of it becoming bigger than peers in capitalizing on the emerging development trends and remaining ahead of the competitors. It says that the close to term development drivers like choose up in discretionary portfolio, tailwinds from GSK-CH integration and gains from investments in digitization, distribution are important development enablers.
Hero MotoCorp: During the festive season, Hero MotoCorp stock may well rally practically 20 per cent from the earlier close of Rs 2847.35. The firm has pegged a target cost of Rs 3,400 apiece. The brokerage expects Hero MotoCorp to continue its dominance in the 2W business driven by the positive aspects of premiumisation of its goods, a sturdy foothold in the entry-level motorcycle segments, and aggressive item offerings in the scooters segment. Its partnership with Ather Energy, Harley Davidson and Gogoro will enable raise its presence in new technologies and premium segment bikes. Additionally, it sees a sturdy recovery in FY22 and FY23 driven by normalisation of the economy.
SBI Cards and Payment Services: The stock may well rally more than 15 per cent to Rs 1,210 apiece, from the earlier close of Rs 1,046.20 apiece. SBI Cards and Payment Services has regained its lost momentum in terms of spends and buyer sourcing as COVID 2. headwinds weakened. The brokerage firm noted that the positive trend on the asset excellent front and a notably decrease quantum of restructuring 2. provide relief. It also believes that the organization has sturdy moats which will assistance robust extended-term development and aiding market place share gains.
Relaxo Footwear: It will take Relaxo Footwear to jump 10 per cent from the last close of Rs 1,171.50 apiece. With a sturdy portfolio of footwear goods and expansion in distribution attain (specifically in southern markets), Axis Securities sees Relaxo effectively poised to accomplish income and earnings CAGR of 19% and 22%, respectively, more than FY21-FY24E. “Strong earnings visibility and strengthening of the balance sheet will keep valuations at a premium,” it mentioned.
Aditya Birla Fashion and Retail: It has a target cost of Rs 250, more than 2 per cent get from the last close. The brokerage firm mentioned that more than the years, ABFRL has constructed a sturdy brand with higher development prospective catering to many categories in the style segments. The firm noted that life-style brands (Louis Philippe, Van Heusen, Peter England and Allen Solly) lead in the men’s formal and casual put on in the mid-premium and premium space and yield a healthier return more than the medium term.
Safari Industries: Safari Industries’ stock cost is set to jump more than 8 per cent from the last close of Rs 851 apiece, through festive season demand. The brokerage firm has suggested shopping for the stock with a target cost of Rs 922 apiece. “Although the company’s near-term earnings outlook remains clouded as travel and people movement continue to be restricted albeit better than previous periods, we think short-haul trips and marriage-led demand could support growth in H2FY22,” it mentioned. The firm also noted important dangers such as sudden spike in COVID instances and ensuing restrictions on travel spike in RM fees and increasing competitive activity.
(The stock suggestions in this story are by the respective study analysts and brokerage firms. TheSpuzz Online does not bear any duty for their investment guidance. Capital markets investments are topic to guidelines and regulations. Please seek advice from your investment advisor just before investing.)