INSUBCONTINENT EXCLUSIVE:
Diwali stock picks: SBI, Infosys and PI Industries are among Motilal Oswal's top picks.The S-P BSE Sensex and NSE Nifty 50 indexes have
advanced 11 per cent and 9.55 per cent each respectively since Diwali last year despite heightened volatility due to Coronavirus -induced
The Sensex and Nifty had a rough ride in Samvat 2076 wherein the Sensex and Nifty fell to multi-year lows of 25,638.9 and 7,511.10
respectively in March as the country went into lockdown to curb the spread of Coronavirus pandemic leading to a complete halt of economic
However, the subsequent reopening of the economy lifted the investors' sentiment and the benchmarks again surged to record highs days ahead
of Diwali."Equity markets had a historical journey in Samvat 2076, as it marked a year of huge volatility, unpredictability, pessimism,
The markets touched all time high of 12,431 in Jan'20 and then hits 3 year low of 7511 in Mar'20 as COVID-19 pandemic grips the whole world,
becoming one of the biggest threats to the worldwide economy," the Mumbai-based brokerage firm Motilal Oswal said in a research report."As
we enter Samvat 2077, the markets have seen a complete recovery from the Covid lows, in-line with the improving data points and positive
We expect Nifty EPS growth of 4 per cent in FY21 while expecting a sharp rebound in FY22," Motilal oswal added.With the economic activity
recovering fast, more earnings upgrade cannot be ruled out
Further strong global markets can keep the liquidity abundant in the system, thus providing support to the overall market
However, intermittent corrections cannot be ruled out as there is a risk of second wave of Covid-19 and thus sustenance of economic recovery
From next 12 months perspective, we are positive on IT, Healthcare, Rural-Agri, Telecom, Consumer along with select Financials
We believe another round of fiscal stimulus could help elevate sentiment further.Bharti AirtelTarget price: Rs 650Motilal Oswal recommends
buying Bharti Airtel for a potential upside of 42 per cent
"Bharti's execution has been top-notch in the last few quarters, evident from strong 16 per cent India Mobile EBITDA growth cumulatively in
Robust 10m subscriber adds lead to cumulative ARPU improvement of 5 per cent," Motilal Oswal said in a report.State Bank of IndiaTarget
price: Rs 300Motilal Oswal has advised investing in the country's largest bank by assets for upside of 37 per cent
"We believe the earnings normalization cycle for SBI has begun and it remains the best play among the PSU banks, on gradual recovery in the
Indian economy, with a healthy PCR of 71 per cent, robust capitalization, a strong liability franchise, and improved core operating
profitability," the Mumbai-based brokerage firm said.Hero MotoCorpTarget price: Rs 3,700Motilal Oswal recommends investing on Hero MotoCorp
for upside of 26 per cent
"Hero MotoCorp is poised for faster recovery over other 2W peers due to its rural-focused portfolio and market leadership in the entry and
Considering its improved competitive positioning post BS6, HMCL should continue to see good demand with its economy-executive focused
portfolio," the brokerage firm said.InfosysTarget price: Rs 1,355"We expect Infosys to be a key beneficiary in terms of recovery in IT
Infosys remains our top pick within the sector given its headroom for margin expansion and strong deal wins," Motilal Oswal said.Ultratech
CementTarget price: Rs 5,600"Ulttratech Cement has a strong pan-India distribution network and preferred supplier status for key
This places it in a good position to tap into expected growth in both retail and institutional (non-trade) cement demand in India," the
brokerage said.ICICI BankTarget price: Rs 525"ICICI Bank continues to see strong growth in retail deposits and has succeeded in building a
robust liability franchise over the past few years which continues to improve
Business trends are improving, with disbursement reaching pre Covid / higher than pre-COVID levels (in some segments)," the Mumbai-based
broker said.Crompton ConsumerTarget price: Rs 360"Crompton Greaves has further consolidated its position in the fans and pumps market, and
has become the No.2 player in the Water heaters segment
Despite strong element of pent-up demand playing out recently, we believe underlying demand to be in positive territory, which should
sustain/improve going forward," Motilal Oswal said.Dabur IndiaTarget price: Rs 600"Dabur's investment case is strong, supported by: (a)
dedicated focus on the Herbal segment, (b) power brand strategy, (c) a spate of new launches, (d) an increasing direct distribution reach
and (e) cost savings which would be plowed back into the business," Motilal Oswal said.PI IndustriesTarget price: Rs 2,611"We believe PI
Industries has levers in place to sustain growth momentum, led by (a) ramp-up in operations of two multi-purpose plants , (b) revenue from
the Isagro acquisition, (c) sustained growth momentum in the CSM business, and (d) product launches in the domestic market providing
earnings visibility," Motilal Oswal said.Divi's LabsTarget price: Rs 3,520"We are positive on Divi's Labs given favorable demand for its
APIs, margin enhancement owing to an increase in the in-house manufacturing of intermediates, and additional revenue from new capex," the
