Stock Picks for 2022: HDFC Securities recommends these top 10 stocks to maximize wealth

Aditya Birla Capital: MCap - Rs 30,227 crore I CMP - Rs 125.1 crore I PAT FY21 - Rs 1126.5 crore

ABCL focuses on leveraging technology and analytics to grow revenue, improve customer experience, optimise cost and build robust, scalable systems, as per HDFC Securities. The company is implementing a common branch infrastructure, which will allow a number of its businesses to enter new locations with a lean and low-cost model and cross-sell products, which could lead to a saving of about Rs 40 crore. Source: Aditya Birla Capital Twitter

GAIL (India) : MCap - Rs 59,213 crore I CMP - Rs 133.4 crore I PAT FY21 - Rs 6136.4 crore

GAIL is planning to expand in petrochemicals, speciality chemicals and renewables to supplement growth in its core business of natural gas marketing and transportation, as per HDFC Securities. It plans to bid for new pipelines put on offer by the regulator. Source: GAIL Twitter

 

Hindustan Zinc: MCap - Rs 155,470 crore I CMP - Rs 368 crore I PAT FY21 - Rs 7980 crore

The Supreme Court allowed disinvestment of the Centre’s residuary 29.5 per cent share in the open market in November. Now, post divestment, it is expected to command better valuation, as per HDFC Securities. Source: Hindustan Zinc Twitter

 

IPCA Labs: MCap - Rs 25,823 crore I CMP - Rs 2035.7 crore I PAT FY21 - Rs 1140 crore

HDFC Securities cites certain reasons for the positive approach towards IPCA Labs. They are as follows - strong volume growth in domestic formulation across therapeutic areas, cost-competitive and consistent quality driving better business prospects in API segment, robust debt-free B/S and strong return ratios and better traction in the international markets such as Europe and Asia. Source: ipca.com

 

M&M: MCap - Rs 104,814 crore I CMP - Rs 843.1 crore I PAT FY21 - 2534.4 crore

The company is planning to launch 13 new products across LCVs, SUVs, and 3Ws to drive growth in the medium term – of this, 20% will be EVs, as per HDFC Securities. The company plans to launch 16 electric vehicles by 2027, out of which 8 will be electric SUVs and 8 light commercial vehicles. It must also be noted that the management has guided for flat to low single-digit growth in FY22 due to a demanding base effect. The tractor market share though is up 190bps YoY to 40.1 per cent. As per HDFC Securities, M&M is targeting a 10x increase in the agri implements segment to drive growth in the medium term. Source: Reuters

 

Max Financial: MCap - Rs 34,374 crore I CMP - Rs 996.1 crore I PAT FY21 - Rs 425.4 crore

A strategic partnership with Axis Bank provides long-term distribution capability, ending uncertainty and market anxiety over the future of Max Life (MAXL) and Axis Bank’s distribution arrangement, as per HDFC Securities. It must be noted that over a long-term period, India’s highly underpenetrated life insurance space is attractively positioned to capture the huge growth opportunity. Large private players are in a better place to take advantage given their ability to push protection business by leveraging strong brand and existing networks. Source: maxfinancialservices.com

 

Max Healthcare: MCap - Rs 38,725 crore I CMP - Rs 399.4 crore I PAT FY21 - Rs 50.3 crore

The company has reduced its net debt significantly, as per HDFC Securities. The strong free cash flows and low debt provides adequate headroom to expand through brownfield, greenfield and M&A. The company focuses on providing tertiary and quaternary care services, contributing ~70 per cent of its hospital revenues. Source: Max Healthcare Twitter

 

State Bank of India: MCap - Rs 435,342 crore I CMP - Rs 487.8 crore I PAT FY21 - Rs 21393.2 crore

SBI is almost immune to any liability-side risks at this juncture, given its expansive, granular deposit base and government’s majority holding, as per HDFC Securities. It is better placed to curtail asset quality worries than many other large banks because of its quality of loan books. Moreover, ample provision coverage will curtail incremental loan loss provisions. On the digitalization front, its YONO app continues to generate strong traction across all metrics. As per HDFC Securities, 37 per cent of retail asset accounts and 58 per cent of savings accounts opened through YONO in Q2FY22. Source: Reuters
 

Tech Mahindra: MCap - Rs 158,969 crore crore I CMP - Rs 1638.2 crore I PAT FY21 - Rs 4428 crore

Tech Mahindra is focused on leveraging next generation technologies including Blockchain, Cybersecurity, Artificial Intelligence, 5G and more, to disrupt and enable digital transformation and to build cutting-edge technology solutions and services, as per HDFC Securities. Tech Mahindra could see improved spending on network operations, 5G, Cloud, AI and customer experience on the communication side in the longer term. Furthermore, the company's net new deal TCVs has been remained significantly higher than the average quarterly deal wins of US$ 400mn -500mn. Tech Mahindra is well positioned to expand a fair share of 5G network services and the company is experiencing a largedeal strategy and customer-led approach. Source: Tech Mahindra Twitter

 

Zee Entertainment: MCap - Rs 34,391 crore I CMP - Rs 358.1 crore I PAT FY21 - Rs 7729.9 crore

ZEEL and Sony Pictures Networks India (SPNI) have entered into an exclusive, non-binding term sheet for the merger of the two companies, as per HDFC Securities. The parent company of SPNI will invest growth capital of ~US$ 1.6bn. The merged entity will become the market leader with ~25% of market share led by wide offerings, robust financials, and strong digital businesses and sports rights. Source: Zee Twitter

 

 

 

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)