Samvat 2081 stock pick ideas: 4 smallcap, 1 largecap stock to buy for stellar gains
As bank stocks continue to take charge post solid Q2 performance, here are the few stock ideas by domestic brokerage Bonanza Portfolio for Samvat 2081.
As Indian equities continue to correct after stellar gains recorded in Samvat 2080 with some froth in valuations being removed for some of the pockets, here are the stock ideas for Samvat 2081 that can be rewarding for investors.
Stocks to buy: Newgen Software
Bonanza Portfolio has recommended to buy the software and consulting company. The brokerage is of the view that the company's focus on AI and automation solutions to innovate augments significant value to its offerings.
The company's management aims to achieve US$500mn in revenue over the next 4-5 years, implying a growth rate of over 25 per cent CAGR.
We believe, Newgen is well-positioned to benefit from increased digital transformation investments, with a favorable risk-reward profile, added the brokerage.
Last the compay's scrip traded at Rs 1,201.9, down over 2 per cent.
Stocks to buy: Triveni Turbine
The brokerage house bets on smallcap heavy electrical equipment company as an improvement in export contribution (66% mix) and a strong growth in export orders (74% YoY) provide visibility for both revenue and profitability for FY25.
Order book growth in Q1FY25 was 23% YoY to Rs. 1,726cr (1x Trailing Twelve Months Revenue), driven by a 74% YoY increase in export order intake.
Expansion in turbine capacity - a big boost
With the growing demand from sectors like steel, cement and renewable energy, TTL has expanded its turbine capacity upto 120MW.
The brokerage anticipates increased execution in the upcoming years given the prospects in the global market.
The stock's last traded price is Rs 654.3, down by over 2 per cent.
Stocks to buy: Hindalco Industries
The brokerage undelined that the company is pursuing multiple growth avenues, including commissioning downstream aluminum capacity in India by FY26 and the Bay Minette facility at Novelis by FY27. The company reported robust performance driven by cost control in the aluminum division and record EBITDA in the copper division, which rose 52 per cent on-year due to higher copper prices.
Capex guidance pegged at Rs 55-60 billion
Also, the brokerage highlighted that the Aditya Birla Group company has maintained its capex guidance for FY25 at Rs.55-60 billion, targeting upstream expansions and enhancing downstream margins through value-added product offerings.
Stock to buy: Power Mech Projects
The company boasts a robust order book of Rs.57,793 crore, ensuring strong revenue visibility over the coming years. The company is actively exploring growth opportunities in non-power sectors such as railways, steel, and optical fiber cable projects under BharatNet, further diversifying its business portfolio.
Furthermore, the company is experiencing strong traction and exploring new territories, having bid for projects in Jordan and added new clients in Qatar and Saudi Arabia. With a significant pipeline, the overseas O&M business is anticipated to grow substantially over the next 2-3 years.
Stocks to buy: India Glycols
The brokerage is also bullish on this commodity chemicals stock as the company is aiming to capitalize on the increased adoption of Bio-MEG as a green alternative, expected to remain stable in the future.
India Glycols (IGL) is the largest manufacturer of bio-based glycols in India and globally. It holds a dominant position in the country liquor segment in UP and Uttarakhand. It is also a global leader in Thiocolchicoside API sales, a highly potent a highly potent muscle relaxant
The stock at the last count traded with a cut of over 1 per cent at Rs 1,184.65 per share.