Muhurat Picks 2022: Amid the positive triggers, Samvat 2079 looks much brighter and more promising and relative outperformance of the Indian market will likely sustain going forward. The benchmark indices in Samvat 2078 have been massive volatile, as Sensex, and Nifty corrected by around 6-7 per cent so far.

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Factors such as good monsoon, higher reservoir levels, cool-off in commodity prices, and healthy job/labour market cumulatively indicate that the domestic economy would accommodate the prevailing inflation rather smoothly, Axis Securities said in its report.

Similarly, ICICI Securities estimate one year forward, the Nifty target is at 19425 (21x FY24 EPS) with a sectoral bias towards banks, capital goods/infrastructure, and autos, avoiding sectors having more global exposure like IT, oil & gas, and metals.

Brokerages see reasonable opportunities across the market spectrum with the key filter being quality, in this regard, they have shortlisted the top five quality stocks that could give bumper returns in one year.

ICICI Securities Muhurat Picks

Laurus Labs: Buy – Target: 675; Upside: 31%

Laurus has multiple planned capacity expansions in portfolio based on complexity and scale towards strengthening and diversifying business by an increased focus on non-ARV APIs and formulations and high growth CRAMS (Contract Research & Manufacturing Services) segments.

Calibrated focus on CRAMs, stable API order book, increasing reactor volume, expansion of the biologic CDMO, product launches and capacity expansion are some key levers.

On Friday, shares of Laurus Labs closed over 2 per cent higher to Rs 515 per share on the exchanges.

Container Corp: Buy – Target: 890; Upside: 28%

Newer initiatives such as distribution logistics, cement, and food grain transport, and higher terminal utilisation, among others are expected to diversify Concor’s offerings to customers and thereby capture a higher wallet share.

Driven by higher volume growth and incremental revenues from new initiatives, ICICI Securities expect Concor to register a revenue, and PAT CAGR of 22%, and 46%, respectively, in FY22-24E.

On Friday, shares of ConCor closed flat with a positive bias to Rs 695 per share on the exchanges.

Havells India: Buy – Target: 1650; Upside: 32%

ICICI Securities believe Havells will report a strong revenue CAGR of 16% over FY22- 24E led by new product launches, dealer expansion. It also believe softening of raw material prices and the launch of premium products will result in a strong EBITDA margin recovery for the company from H2FY23 onwards (from its lowest Q1FY23 EBITDA margin of 8.5%).

As result, PAT will register a strong CAGR of 20% over FY22-24E. Strong brand, robust balance sheet position & focus on improving profitability of its Lloyds business makes Havells an attractive stock in the FMEG space.

On Friday, shares of Havells India closed over 1.5 per cent higher to Rs 1253 per share on the exchanges.

 

Axis Securities Muhurat Picks

IDFC First Bank: Buy – Target: 70; Upside: 30%

With a strong and granular deposit base, IDFC First Bank is focused on growing its loan portfolio wherein the retail book is expected to drive the same. Axis Securities believe the stock is poised for re-rating given the continuous improvement in the bank’s asset quality, its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25E.

On Friday, shares of IDFC First Bank closed flat with a negative bias to Rs 54 per share on the exchanges.

Westlife Development (McDonald’s): Buy – Target: 870; Upside: 22%

The company is well-placed to capitalize on the growing QSR opportunity on account of driving consistent growth in the SSSG (Single-Store Sales Growth) and keeping the innovation funnel on, launching new products that suit the Indian taste palate; entering and quickly scaling up the growing QSR categories – Fried chicken and coffee; pushing affordability through combo meals.

On Friday, shares of Havells India closed around 1.5 per cent lower to Rs 711 per share on the exchanges.