For the month of October 2021, domestic brokerage and research firm Angel One (earlier known as Angel Broking) has recommended top stock picks from different sectors including auto, banking and chemical stocks like Ashok Leyland, Escorts, HDFC Bank, Federal Bank, PI Industries among its top picks list.
Angel Broking’s has ‘Buy’ recommendation on these auto-related stocks: Ashok Leyland with a target price ₹158, Sona BLW (TP ₹719), GNA Axles (TP ₹1,233), Suprajit Engineering (TP ₹390).
Given the traction in the BEV/Hybrid Vehicle space, the brokerage believes that Sona Comstar will continue to command higher multiple and gain market share across its products especially for products related to EV/BEV.
For Suprajit Engineering, it believes that the company is prime beneficiary of ramp-up in production by OEMs across the globe and is well insulated from threat of EV (is developing new products).
Under banking, its top stock picks include Federal Bank (target price of ₹110), HDFC Bank (TP ₹1859) Shriram City Union (TP ₹3002), AU Small Finance (TP ₹1,520).
Given stable asset quality, Angel expects AU Small Finance’s loan growth to pick up in Q2FY22 which should lead to a rerating for the bank.
In chemicals sector, PI Industries is its pick for the month with the target price of ₹3,950 per share. “PI Industries has announced that they will be acquiring the API business of Indswift labs. The entry into the API business will help provide the company with an additional lever to drive growth,” the note said.
Other recommendations include Carborundum Universal (TP ₹1060), Stove Kraft (TP ₹1288), Safari Ind (TP ₹979), Sobha (TP ₹870), Whirlpool India (TP ₹2,760), Lemon Tree Hotel (TP ₹54), and Amber Enterprises with a target price of ₹3,943.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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