2 min read.Updated: 27 Dec 2021, 12:39 PM ISTLivemint
SBI, GAIL, Tech Mahindra, Aditya Birla Capital, Hindustan Zinc are among the brokerage's top stock picks
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Domestic brokerage and research firm HDFC Securities has shared ten top stocks recommendations for the upcoming year 2022 which includes PSU lender State Bank of India (SBI), GAIL, Tech Mahindra, Aditya Birla Capital, Hindustan Zinc, Mahindra & Mahindra (M&M) among others.
Aditya Birla Capital: Aditya Birla Finance remains focused on building granularity across segments while reducing ticket size across the board. ABHFL continued its focus on affordable housing, which has doubled its AUM in the last 2 years. ABSLAMC is focused on increasing the share of equity-oriented funds overall, which provides a higher margin.
GAIL (India): GAIL is planning to expand in petrochemicals, speciality chemicals and renewables to supplement growth in its core business of natural gas marketing and transportation.
Hindustan Zinc: High operating efficiency is driven by fully integrated operations and low-cost, high-grade zinc reserves and with access to the bulk of lead-zinc deposits, the company should sustain as a low-cost producer of zinc over the medium term.
Ipca Labs: "We are positive on Ipca Labs on the back of 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."
M&M: Mahindra & Mahindra has a strong product pipeline in UVs and tractors to help outperform the industry.
Max Financial: 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 better place to take advantage given their ability to push protection business by leveraging strong brand and existing network.
Max Healthcare: Strong revenue growth is driven by increasing health insurance penetration, better patient mix, increasing ARPOB, growth in medical tourism and focus on specialities. Optimisation of payor mix offers scope for margin expansion.
State Bank of India: SBI is almost immune to any liability-side risks at this juncture, given its expansive, granular deposit base and government’s majority holding. It is better placed to curtail asset quality worries than many other large banks because of its quality of loan books.
Tech Mahindra: 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.
Zee Entertainment (High Risk Pick): The company’s pan-India viewership and focus on digital are likely to anchor growth over the long term. Apart from this, ZEEL’s OTT app Zee5 is well placed to improve its traction leading to revenue improvement & loss reduction.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.