Motilal Oswal has come out with recommendations for the festive season. Here are 5 stocks that the brokerage firm believes have the potential to deliver.
1. Bharti Airtel
Broking firm Motilal Oswal believes that the stock of Bharti Airtel has an upside potential of to 42 per cent.
"Bharti's execution has been top-notch in the last few quarters, evident from strong 16% India Mobile EBITDA growth cumulatively in the last two quarters. Robust 10 million subscriber adds lead to cumulative ARPU improvement of 5%," the broking firm has stated.
The broking firm has set an upside target of Rs 650, against the current market price of Rs 458. The shares of Bharti Airtel were last trading at Rs 460.
2. State Bank of India
Motilal Oswal has set an upside target of Rs 300 on the stock of State Bank of India. This implies a 37 per cent upside from current levels.
"We believe the earnings normalization cycle for SBI has begun and it remains the best play among the PSU banks, on gradual recovery in the Indian economy, with a healthy PCR of 71 per cent, robust capitalization, a strong liability franchise, and improved core operating profitability," the broking firm has said.
Shares of State Bank of India were last seen trading at Rs 220.
3. Crompton Consumer
Another stock recommended by Motilal Oswal is the stock of Crompton Consumer.
"CROMPTON has further consolidated its position in the fans and pumps market, and has become the No.2 player in the Water heaters segment. Despite strong element of pent-up demand playing out recently, we believe underlying demand to be in positive territory, which should sustain/improve going forward," the broking firm has said.
4. HeroMoto Corp
"HeroMoto Corp is poised for faster recovery over other 2W peers due to its rural-focused portfolio and market leadership in the entry and executive segments. Considering its improved competitive positioning post BS6, HMCL should continue to see good demand with its economy-executive focused portfolio," the broking firm has said.
The shares of HeroMoto Corp were last seen trading at Rs 2955 on the NSE.
5. Ultratech Cement
According to Motilal Oswal Ultratech Cement has a strong pan-India distribution network and preferred supplier status for key infrastructure projects. This places it in a good position to tap into expected growth in both retail and institutional (nontrade) cement demand in India.
The shares of Ultratech Cement were last trading at Rs 4,636 on the Bombay Stock Exchange.