The BSE Sensex was trading 259.29 points down at 60,347.27 in early trade on Tuesday amid selling in shares. It opened 174 points higher at 60,786.07, but soon thereafter, the gains turned upside down and fell into negative territory at 60,347.27. NSE’s Nifty also closed down 57 places at 17,995.95 points. According to brokerage Angel One, here are some stocks that investors should keep an eye on:
Ashok Leyland
Ashok Leyland Limited (ALL) is one of the leading players in the Indian CV industry with a market share of 32% in the MHCV segment. The company also has a strong presence in the fast growing LCV segment. The company is well poised to capture the growth revival in the CV segment and will be the biggest beneficiary of the government’s voluntary scrappage policy and hence rate buy to the stock.
federal bank
Federal Bank is one of the largest old generation private sector banks in India with a net worth of Rs 1.9 lakh crore, with deposits of Rs 1.56 lakh crore and a loan book of Rs 1.2 lakh crore in FY20. The PCR at the end of Q3FY21 was around 67 per cent, which is substantial. The restructuring book is expected to be Rs 1,500-1,600 crore, of which Rs 1,067 crore has been restructured. This is contrary to earlier expectations of a total restructuring of Rs 3,000-3,500 crore.
Suprajit Engineering Limited
It is the largest supplier of automotive cables to domestic OEMs, with a presence in both 2W and passenger vehicles (PV). SEL has outperformed the Indian auto industry in recent years (after a low double-digit decline versus positive growth for the domestic 2W and PV industry in FY2011). SEL is a major beneficiary of production spurts by OEMs around the world and is well insulated from the threat of EVs (developing new products). Its premium valuation is justified due to its strong outlook and top-class quality of earnings.
stove craft
The company is engaged in the business of manufacturing and selling of Kitchen and Home Appliances products like Pressure Cooker, LPG Stove and Non-Stick Cookware etc. under the brand names ‘Pigeon’ and ‘Gilma’. In the pressure cooker and cookware segment, over the last two years, the company has outperformed the industry and its peers. Going forward, SKL is expected to report healthy revenue and profit growth with new product launches, a strong brand name and wide distribution network.
AU Small Finance
It is one of the leading small finance banks with assets under management of around Rs 34,688 crore at the end of Q1FY22. AU SFB has a well-diversified geographical presence in North, Central and Western India. Given its stable asset quality, credit growth is expected to pick up in Q2 of FY22, which should lead to a re-rating for the bank.
HDFC bank
It is the largest private sector bank in India with an asset book of Rs 11.3 lakh crore and a deposit base of Rs 13.4 lakh crore in FY 2011. The bank has a well-stretched book with wholesale assets accounting for about 54 per cent, while retail accounts for the remaining 46 per cent loan book. Given the best-in-class asset quality and the expected rebound in growth from Q2FY22, it is a good pick given the fair valuation at 3.0xFY23 adjusted book, which is at a discount to the historical average. After the announcement of the merger of HDFC with HDFC Bank, its stake increased by about 10 per cent.
Disclaimer: The views and investment tips of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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