Yes Securities, brokerage and research firm has recommended twelve stocks that it considers as Top Picks for a time-frame of 12 months.
Here are the 12 stocks as recommended by Yes Securities:
PRINCE PIPES
Prince Pipes & Fittings (PP&F) is a leading plastic pipes manufacturers in India. PP&F possesses 6 percent market share of an overall industry. The company’s strong brand imageand strategic tie-ups company is likely to expand their market-share. Moreover, industry is witnessing a meaningful transition from unorganized to organized segment which will further enable the company to outperform industry growth by registering 15 percent CAGR in volumes over FY21-FY24E.
Target price: Rs 1,091
GREENPANEL INDUSTRIES
Greenpanel is among the largest players in MDF industry with 35 percent market share and with industry set to grow by 25 percent CAGR over coming five years. Currently Greenpanel has total capacity of 5.4L CBM/annum capacity and in order to cater the growing demand, company is expanding their capacities by 1.2Lcbm/annum. Over FY21-FY24E we expect volume growth of 18 percent CAGR.
Target Price: Rs 470
APOLLO PIPES
Apollo Pipes is currently trading at P/E(x) of 25x on FY24E EPS as compared to industry average of 34x. We believe, as Apollo Pipes is on the cusp of becoming a leading pan-India player, it should fetch similar valuations compared to other pan-India players. Apollo Pipes is trading at 22x on FY24E EPS of Rs 76.5.
Target Price: Rs 2,250
ACRYSIL
Acrysil is one of only four global players and the only Asian manufacturer of Quartz sinks with German technology - the sole approved technology by global Quartz sink vendors. Acrysil Ltd is likely to become one of the biggest beneficiaries of the robust global demand for Quartz sinks.
Target Price: Rs 995
DALMIA BHARAT
Dalmia Bharat to witness robust volume growth as COVID-led-demand destruction had dented the industry volume by 12 percent y/y in FY21, despite that the company's volume had increased by 7 percent y/y due to the incremental capacity and eastern market robust demand. Thus, we believe Dalmia Bharat's volume is likely to grow substantially by 10/16 percent y/y in FY22/23E.
Target Price: Rs 2,640
INDIAMART
India Mart has a huge opportunity to grow as only 2 percent of addressable MSMEs pay for priority listing services in India compared to 4 percent in China. Also 55 percent of MSMEs have some sort of digital presence compared to 90 percent in China. Strong revenue growth outlook along with growing margin trajectory led by positive operating leverage makes it an attractive play in online classified space.
Target Price: Rs 10,200
PNC INFRA
Strong Balance sheet, improvement in Net Working Capital Days and double-digit margin profile to support.Recent order inflows, continued focus on asset monetization and comfortable balance sheet provide comfort.
Target Price: Rs 460
POLYCABS
Polycab has undertaken a journey of transforming itself into a strong B2C player and we expect the trend to continue with increase in its distribution presence; it is working on a five-year vision Project Leap where it plans to double its revenue to Rs200bn by FY26E. Stock is trading at only 19x EV/EBIDTA on FY24, which is at significant discount to electricals peers.
Target Price: Rs 3,300
ICICI BANK
In ICICI, we see an ability to increase, prospectively, the share of higher-yielding loans in a risk calibrated manner. ICICI currently trades at an implied valuation of 2.2x standalone FY23 P/BV.
Target Price: Rs 1,112
GLAND PHARMA
Foray in to complex injectables like peptides, hormones and newer dosage forms like pens, cartridges to support growth beyond next 2-3 years. While no listed peer in India, globally closest overlap is with Recipharm and Catalent. Recipharm and Catalent trade at lower multiple and reckon Gland with a much better ROE (average 23 percent vs. mid-teens for Catalent) and margin should trade at a premium.
Target Price: Rs 4,925
SBI CARDS
New card issuances, spends and receivables and profits should start recovering from Q2 FY22 after being impacted in the preceding quarters due to pandemic waves. SBI Cards, a subsidiary of SBI, is the only listed pure-play credit card issuer. Thus, would continue to command a much higher valuation than most Banks and NBFCs.
Target Price: Rs 1,625
CRISIL
Our bullish stance on CRISIL is premised on a) dominant market share in India rating business pie, b) diversified revenue mix (less-cyclical), c) improving margins, and d) robust corporate governance and superior rating performance (better average default rates and stability rates). On a 12 percent revenue CAGR, we see 18 percent earnings CAGR during CY21- 24. Improved earnings trajectory and escalation of RoE will cause rerating of valuation.
Target Price: Rs 4,460
(The views and recommendations made above are those of individual analysts or broking companies)
