After the sharp recovery in July, stock-specific actions are what many analysts have warned are going to be moving the equity markets forward.
These stocks also are a neighborhood of Emkay Global’s Alpha Portfolio and range from industry leaders within the FMCG and banking space to information technology majors and pharma companies.
After the sharp recovery in July, stock-specific actions are what many analysts have warned are going to be moving the equity markets forward. In such times, brokerage and research firm Emkay Global has made an inventory of large-cap stocks that they believe have the potential to rise further. These stocks also are a neighborhood of Emkay Global’s Alpha Portfolio and range from industry leaders within the FMCG and banking space to information technology majors and pharma companies. within the current risk-averse environment where bigger has been safer, these stocks could offer some comfort to investors with their strong leadership position.
Aurobindo Pharma
With the US business of the pharmaceutical major growing rapidly from $250 million a couple of quarters ago to $400 million, analysts at Emkay Global believe the corporation has shown exemplary execution. “The company may be a key beneficiary of product shortage opportunities within the US, given its robust supply chain management and wide product portfolio,” Emkay said. Aurobindo Pharma has also been getting to go debt-free which might benefit the corporate going forward. Pharma stocks are enjoying a robust run available markets and with a various set of products offered by Aurobindo Pharma, it’s unlikely to face concentration risks.
Bharti Airtel
The telecom major is probably going to profit from the growing number of 4G subscribers and might see some benefit coming from the growing problems for Vodafone-Idea. “The record provides some comfort, with net debt-to-EBITDA expected to say no to 2.3x in FY22E vs 3.2x in FY20. Additionally, moderation in CAPEX spends, as guided by the management, shall aid cash generation also,” Emkay Global said. India’s three telecom operators might be exploring the likelihood of a tariff hike soon which can improve Bharti Airtel’s Average Revenue Per User.
HDFC Bank
India’s largest private sector lender HDFC Bank has been witnessing growth as customers rush to safety in these uncertain times. Although there are risks even to HDFC Bank at this juncture, it’s far better placed in comparison to peers. “We believe that the bank’s otherwise strong underwriting standards, risk management, and recovery architecture should limit the impact,” they said. Today the bank received approval from the Federal Reserve Bank of India to appoint Sashidhar Jagdishan because of the new director and CEO of the bank when Aditya Puri quits later this year.
Infosys
The Information Technology major gets the backing of analysts at Emkay Global who have replaced Reliance Industries in their Alpha Portfolio with Infosys. Infosys managed to beat revenue and margin expectations within the April-June quarter. IT companies have had bargain wins within the half-moon of this fiscal helping their revenues grow. “We believe that the worst of the margin decline is behind Infosys and that we could still see strong margin performance, aided by revenue growth also as operational levers like onshore/offshore shift and parasitization,” said Emkay Global.
Britannia
In a shift towards the consumption of grocery within the wake of the spreading virus, Emkay Global believes Britannia’s leadership position within the biscuits category is what is going to help the corporation. “Besides a gentle innovation pipeline, distribution expansion and market share gains in biscuits, the company’s step-up in new launches across adjacent categories are likely to enhance its growth momentum,” Emkay Global noted.
