6 Angel Broking Stock Picks For February For Upside Of Up To 43.5%

Indian indices after being hit severely on Monday (February 14, 2022) have opened on a positive note today. Sensex is up 333 points, while Nifty is near 16,959 levels. Meanwhile Angel Broking in its February top stock picks has recommended some of the miscellaneous stocks:

1. Carborundum: Buy for a target of Rs. 1100, implying upside of 32%

The company is leading manufacturer of abrasives, industrial ceramics, refractories, and electro minerals (EMD) in India having application across diversified user industries. The company is expected to benefit from improving demand scenarios across its end-user industries such as auto, auto components, engineering, basic metals, infrastructure, and power.

The company has a good hold and is gaining market share (supply chain issues/preference for Indian suppliers) and should benefit from a good end-user industry demand. EMD performance is likely to sustain owing to strong pricing and Volumes (due to the China+1 strategy of its customers). "We believe that CUMI's leadership position in the domestic abrasives market, well-diversified presence, launches of value-added products, and healthy cost advantages would sustain the improvement in profitability and enhance cash generation", notes the brokerage.

2. Stove Kraft:

The company is engaged in the business of manufacturing & selling Kitchen& Home appliances products like pressure cookers, LPG stoves, non-stick cookware etc. under the brand name of 'Pigeon' and 'Gilma'.

Post Covid, the organised market players have been gaining market share from unorganised players Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and wide distribution network.

3. Safari Industries:

The company is a leading luggage player and has a market share of 18%. Over the last three years, the company has outperformed luggage Industries in terms of sales growth. Company has a wide distribution network which would support growth going ahead.

Focused product strategy and diversified product portfolio to boost growth. Going forward, we expect the company to report strong top-line & Bottom-line growth on the back of strong growth in the organized sector, wide distribution network, strong brand & promoter initiatives.

4. Sobha: Buy for a target of Rs. 1050

Company operates in Residential & Commercial real-estate along with Contractual business. Companies 70% of residential pre-sales come from the Bangalore market which is one of the IT hubs in India, we expect new hiring by the IT industry will increase residential demand in the South India market.

Ready to move inventory and under construction inventory levels have moved down to its lowest levels. Customers are now having preference towards the branded players like Sobha Developers.

Company expected to launch 17 new projects/phase spread over 12.56mn sqft across various geographies. Majority of launches will be coming from existing land banks. Company having land bank of approx. 200mn Sqft of salable area Its a leading South India realty player. Ready to move inventory and under construction inventory levels have moved down to its lowest levels.

Customers are now having preference towards the branded players like Sobha Developers. Company expected to launch 17 new projects/phase spread over 12.56mn sqft across various geographies.

Majority of launches will be coming from existing land banks. Company having land bank of approx. 200mn Sqft of salable area.

 

5. Amber Enterprise: Buy for a price of Rs. 4150

The company is the leader in the room AC outsourced manufacturing space in India. Amber would outperform the industry due to dominant position in Room AC contract manufacturer, increase in share of business in existing customers and new client additions.

Amber plans to increase revenues from components (by increasing product offerings, catering to newer geographies, adding new clients) and exports (already started in the Middle east).

In the past 2-3 year, Amber has acquired companies like IL JIN Electronics, Ever and Sidwal Refrigeration Industries, which would help in backward integration and also help the company to foray in different segments like railway, metro and defense.

Going forward, we expect healthy profitability on back of foray into the Commercial AC segment, entry into export markets, participation in the PLI scheme.

6. Oberoi Realty:

Oberoi Realty is a real estate company, focusing on the MMR region. Company having business vertices of residential and commercial real-estate.

Company has reported a strong set of numbers in Q2FY22, we expect residential real-estate growth momentum to continue for the next couple of quarters as in Q3FY22 company has launched Elysian Tower B in Goregaon along with this upcoming launch of Thane.

We have seen good consolidation in across India towards top-10 players. Top- 10 players now holds an 11.2% market share as compared to 5.4% in 2017. We believes that top-10 players will continue to gain market share. 

Stock	Current price	Target price	Upside
Carborundum	Rs. 832	Rs. 1100	32%
Stove Kraft	Rs. 633.3	Rs. 866	36.7%
Safari Industries	Rs. 892.05	Rs. 1126	26%
Sobha	Rs. 818	Rs. 1050	28%
Amber Enterprises	Rs. 3493	Rs. 4150	19%
Oberoi Realty	Rs. 871	Rs. 1250	43.5%

 

Disclaimer:

All the stocks and the rationale for buying into them are taken from Angel Broking and are not a recommendation to buy these shares.