DLF, TVS Motor and more: Anand Rathi suggests 6 stocks that you can buy this Diwali

Syrma SGS Technology: The brokerage has a ‘buy’ call on the stock with a target price of <span class='webrupee'>₹</span>735, indicating an upside of 23%. The brokerage expects Syrma SGS to report revenue/EBITDA/PAT CAGR of 36%/50%/55% over FY23-25 mainly backed by: (1) Increasing customer base with rising wallet share from existing customers, (2) focus on technologies and innovation to increase product offerings, (3) entry into new business verticals (aerospace & defence, medical) which will improve strong order book visibility, (4) highest capacity in the industry; new capacity addition will give it an edge over peers. In the last 1 year, the stock has surged over 111%.

1/6Syrma SGS Technology: The brokerage has a ‘buy’ call on the stock with a target price of ₹735, indicating an upside of 23%. The brokerage expects Syrma SGS to report revenue/EBITDA/PAT CAGR of 36%/50%/55% over FY23-25 mainly backed by: (1) Increasing customer base with rising wallet share from existing customers, (2) focus on technologies and innovation to increase product offerings, (3) entry into new business verticals (aerospace & defence, medical) which will improve strong order book visibility, (4) highest capacity in the industry; new capacity addition will give it an edge over peers. In the last 1 year, the stock has surged over 111%.

IDFC First Bank: The brokerage has assigned a ‘buy’ call on the stock with a target price of <span class='webrupee'>₹</span>114, which implies a potential upside of over 40%. IDFC First has undergone the first phase of its transformation from an infra financier to a granular retail lending bank. Investment in technology and building a scalable liability franchisee would keep costs high in the near term, despite strong granular loan growth. The bank expects the credit card business to breakeven by FY25. 24-25% of the credit card mix are revolvers. The bank expects to reach 13-15% ROE by FY25 and 1.4-1.6% ROA by FY25, said the brokerage. Margins are expected to remain stable as the cost of deposits repricing has peaked and the Indian system is tapering off, it added. In the last 1 year, the stock has risen 46%.

2/6IDFC First Bank: The brokerage has assigned a ‘buy’ call on the stock with a target price of ₹114, which implies a potential upside of over 40%. IDFC First has undergone the first phase of its transformation from an infra financier to a granular retail lending bank. Investment in technology and building a scalable liability franchisee would keep costs high in the near term, despite strong granular loan growth. The bank expects the credit card business to breakeven by FY25. 24-25% of the credit card mix are revolvers. The bank expects to reach 13-15% ROE by FY25 and 1.4-1.6% ROA by FY25, said the brokerage. Margins are expected to remain stable as the cost of deposits repricing has peaked and the Indian system is tapering off, it added. In the last 1 year, the stock has risen 46%.

DLF: The brokerage has a ‘buy’ rating on the stock with a target price of <span class='webrupee'>₹</span>640, implying a potential upside of over 11%. DLF's strong leadership in the Delhi-NCR region, a vast residential project pipeline, a significant rental portfolio, ample land reserves with low carrying costs, and favorable market conditions create a promising environment for substantial growth, said the brokerage. For FY24, the management expects pre-sales to surpass <span class='webrupee'>₹</span>12,000 crore, driven by significant inventory, upcoming launches, and strong demand. They plan to introduce msf of projects valued at <span class='webrupee'>₹</span>19,700 crore, with the majority in Gurugram along with projects in Chennai, Chandigarh, and Noida, it further noted. In the last 1 year, the stock has advanced 48%.

3/6DLF: The brokerage has a ‘buy’ rating on the stock with a target price of ₹640, implying a potential upside of over 11%. DLF's strong leadership in the Delhi-NCR region, a vast residential project pipeline, a significant rental portfolio, ample land reserves with low carrying costs, and favorable market conditions create a promising environment for substantial growth, said the brokerage. For FY24, the management expects pre-sales to surpass ₹12,000 crore, driven by significant inventory, upcoming launches, and strong demand. They plan to introduce msf of projects valued at ₹19,700 crore, with the majority in Gurugram along with projects in Chennai, Chandigarh, and Noida, it further noted. In the last 1 year, the stock has advanced 48%.

MTAR Technologies: The brokerage has recommended a ‘buy’ call on the stock with a target price of <span class='webrupee'>₹</span>2,970 per share, indicating an upside of over 19%. With a strong order book, new global aerospace and clean energy clients, and sustained growth from its major clients, MTARTECH is poised to achieve its projected growth in FY24. The company’s working capital has been affected by delayed payments from a key customer and a decrease in payable days, said Anand Rathi. However, the company is actively addressing this issue by reducing inventories and enhancing payment terms, it added. In the last 1 year, the stock has jumped 54%.

4/6MTAR Technologies: The brokerage has recommended a ‘buy’ call on the stock with a target price of ₹2,970 per share, indicating an upside of over 19%. With a strong order book, new global aerospace and clean energy clients, and sustained growth from its major clients, MTARTECH is poised to achieve its projected growth in FY24. The company’s working capital has been affected by delayed payments from a key customer and a decrease in payable days, said Anand Rathi. However, the company is actively addressing this issue by reducing inventories and enhancing payment terms, it added. In the last 1 year, the stock has jumped 54%.

TVS Motor Company: The brokerage has assigned a ‘buy’ call on the stock with a target price of <span class='webrupee'>₹</span>1,850, implying an upside of over 18%. Anand Rathi believes the company is poised to outperform the industry on the back of new product launches in ICE & EV segments, higher focus on exports and premiumisation, operating leverage, benign input prices and price hikes. (MINT_PRINT)

5/6TVS Motor Company: The brokerage has assigned a ‘buy’ call on the stock with a target price of ₹1,850, implying an upside of over 18%. Anand Rathi believes the company is poised to outperform the industry on the back of new product launches in ICE & EV segments, higher focus on exports and premiumisation, operating leverage, benign input prices and price hikes. (MINT_PRINT)

Mahindra & Mahindra: The brokerage has a ‘buy’ call on the stock with a target price of <span class='webrupee'>₹</span>1,770, indicating an upside of almost 22%. M&M has been the dominant market leader in the domestic tractor market, commanding a market share of 42.9% in Q1FY24 (41.2% in FY23). With its offerings across different brands of Mahindra, Swaraj, Trakstar, and soon-to-be-launched Oja and its well-entrenched sales and service network, it is expected to maintain its leadership position going forward as well. The introduction of a new range of OJA tractors is expected to boost its topline in the future, said the firm. It believes the company’s strategic approach with a strong balance sheet will continue to leverage its performance. In the last 1 year, the stock is up only over 7%. (REUTERS)

6/6Mahindra & Mahindra: The brokerage has a ‘buy’ call on the stock with a target price of ₹1,770, indicating an upside of almost 22%. M&M has been the dominant market leader in the domestic tractor market, commanding a market share of 42.9% in Q1FY24 (41.2% in FY23). With its offerings across different brands of Mahindra, Swaraj, Trakstar, and soon-to-be-launched Oja and its well-entrenched sales and service network, it is expected to maintain its leadership position going forward as well. The introduction of a new range of OJA tractors is expected to boost its topline in the future, said the firm. It believes the company’s strategic approach with a strong balance sheet will continue to leverage its performance. In the last 1 year, the stock is up only over 7%. (REUTERS)

DLF, TVS Motor and more: Anand Rathi suggests 6 stocks that you can buy this Diwali

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