Infosys, Hindalco and Coforge among Anand Rathi’s best stock picks at Diwali

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Diwali 2021 stock picks: Anand Rathi bought a call on Infosys for a target price of Rs 2,000.

Indian stock indices have given huge returns since the last Diwali and the start of Samvat 2077 i.e. The US Express News New Year which started on November 14 of last year. The Sensex jumped 50% or 20,555 points in the Samvat 2077 and the larger Nifty 50 index climbed 43% or 5,485 points (to the October 26 closing price). The rise came as a result of a rapid economic recovery following the devastating second wave of Covid-19, the rapid pace of vaccinations, government production-related incentive programs for various sectors, and rates of ‘low interest. Meanwhile, investors remain bullish in Indian markets as corporate earnings are expected to remain strong as domestic and foreign investors continue to pump money into the markets, analysts said.

Here are the top Diwali stock picks from brokerage firm Anand Rathi:

Infosys

Target price: Rs 2,000

In the second quarter of fiscal 22, the company posted a strong quarterly performance with year-over-year revenue growth reaching 19.4% and sequential growth accelerating to 6.3% in constant currency. Growth was generalized across geographies and segments with the largest geographic area, North America with growth of 23.1% and the largest segment, Financial Services with growth of 20.5 %, year-on-year in constant currency. Digital wallet revenue grew 42.4% year-on-year in constant currency terms. The company won 22 large contracts over $ 50 million, with a TCV of $ 2.15 billion in the second quarter. We remain bullish on Infosys given its strong digital portfolio, healthy transaction pipeline and higher growth expectations. We are initiating a purchase on Infosys with a target price of Rs 2,000 per share, Anand Rathi said in a report.

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Hindalco

Target price: Rs 578

Hindalco Industries is the world’s largest aluminum rolling and recycling company and a major player in copper. The company is also recognized as one of the largest primary aluminum producers in Asia. The company maintains a presence throughout the manufacturing value chain, from bauxite mining, alumina refining, coal mining, aluminum smelting to downstream rolling, to extrusions and sheets. We believe Hindalco is sticking to its guided strategy with ongoing deleveraging and global operations getting stronger with each passing period. Valuations are still not stretched given the strong operating performance and ongoing deleveraging on the balance sheet as well as strong opportunities to continue growth investments at a comfortable leverage position, said Anand Rathi.

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Coforge

Price target: Rs 6,465

Coforge (formerly NIIT Technologies) is a highly differentiated IT services and solutions company. Coforge enjoys a strong presence in certain vertical sectors and their sub-segments which include insurance (life, non-life, commercial / specialized), travel and hospitality (airlines, travel technology, airports, transport surface area, hotels / hotels / logistics), Banking and financial services (Wealth management / Asset management, Risks / Compliance). In addition to these, the company has a growing presence in retail, healthcare and high tech, manufacturing and public sector / government (outside of India). Based on a strong pipeline of transactions, strong momentum in transaction gains and in particular consistency in large-scale transactions, value creation from the acquisition of SLK Global and solid management guidance for fiscal 22, we recommend buying on the stock.

Indo Count Industries

Target price: Rs 334

Indo Count is one of the largest Indian manufacturers and exporters of bed sheets, bed linen and quilts from India, as well as being the number one supplier of bed sheets in the United States. The company has a comprehensive product portfolio in the premium segment which includes bed linens, trendy bedding, utility bedding and institutional bedding. With a physical presence in India, the United States, the United Kingdom and the United Arab Emirates in terms of showrooms, design studios and warehouses, the company exports to more than 54 countries on 5 continents. . ICIL is well prepared to seize all opportunities thanks to its healthy balance sheet, its financial prudence and its targeted approach.

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Rossari Biotech

Price target: Rs 1,840

Rossari Biotech is one of the leading specialty chemical manufacturers in India, Rossari provides customized solutions for specific industrial and production requirements for the FMCG, apparel, poultry and food industries animal feed through a diverse product line including home and personal care products, and performance chemicals, textile chemicals, and animal health and nutrition products. We believe the company will continue to show growth with strong traction in all of its segments and gradual growth with further increase in usage at its Dahej plant.

Vardhman special steels

Target price: Rs 360

Vardhman Specialty Steels (VSSL) is one of the leading producers of specialty steels in India. Part of the US $ 1.20 billion Vardhman Group, VSSL is one of the leading producers of special and alloy steels primarily for the domestic automotive industry. The company, for more than 40 years, has been meeting various hot rolled bar requirements for engineering, automotive, tractors, bearings and allied industries.

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