Top 10 Stock Pick From TCS To SBI For The New Year 2024 By SMC Global

The Indian stock market has had a very exciting year, with the Nifty exceeding the 20,000 mark in September for the first time and the BSE Sensex overtaking the 70,000 mark in December. This is despite unfavourable factors like the war between Russia and Ukraine, the war between Israel and Palestine, global inflation, rising crude prices, the peak US 10-year yield, and a slowdown in consumption.

The brokerage company SMC Global is bullish on the infrastructure, manufacturing, power generation and distribution, and metals sectors for the coming year 2024 since they are expected to see growth and possibly rate drops. Higher consumer spending is anticipated, particularly in light of the approaching elections. The BFSI, IT, and automotive industries will drive earnings growth. SMC Global has picked up 10 stocks from IT, banking, automobile, metals, consumer durables, power, auto ancillaries and capital goods sectors and has given a buy rating on the below-listed stocks.

TCS

CMP: Rs. 3789.45 Target: Rs. 4308 Upside Potential: 14% Recommendation: Buy

The company offers a comprehensive portfolio of generative AI services and solutions which indicates future growth visibility. The addition of new partners and a robust order book and a good pipeline represent sustained business growth. In Q2FY2024, the margin of the company has improved due to cost efficiency and improved utilization besides the attrition rate has also declined close to long-term average.

SBI

CMP: Rs. 643.90 Target: Rs. 791 Upside Potential: 23% Recommendation: Buy

The bank has exhibited healthy performance on various parameters with some parameters showing way better than industry performance and some showing in line with the industry performance. The strong underwriting practices have led to significant improvement in the asset quality of the bank. The management of the bank plans to double its home loan portfolio in the next five years. To achieve its target of doubling the home loan book, the bank is strengthening its underwriting capability to improve delivery.

HCL Tech

CMP: Rs. 1421.75 Target: Rs. 1619 Upside Potential: 14% Recommendation: Buy

Based on the bookings and all the deals that it has signed, it expects very healthy growth in Q3 and Q4. For the entire year, it expects revenue to grow in the range of 4.5% to 5.5%. It expects operating margins for the full year to be around 18% to 19% on the back of some large deal wins and gaining shares on the cost optimization-led deals.

Maruti Suzuki India

CMP: Rs. 10014.10 Target: Rs. 12405 Upside Potential: 24% Recommendation: Buy

The company is expected to maintain its leading market share in the PV industry in spite of fierce competition thanks to its strong brand appeal, robust product lineup, and capacity to release new models on a regular basis. Its revenue growth is also driven by the fact that it has the best distribution network and the highest penetration in rural areas within the PV market.

Hindalco Industries

CMP: Rs. 556.30 Target: Rs. 690 Upside Potential: 24% Recommendation: Buy

According to the management of the company, it has maintained a strong balance sheet and robust cash flows with consolidated net debt to EBITDA ratio below 2 times. Moreover, Domestic demand is strong, especially from pent-up demand from auto (especially EV space), B&C, aerospace (post-resumption of international travel across the globe) and beverage cans. Stable macro conditions to support strong domestic demand. Demand from packaging both domestic as well as globally is immune to recessionary trends. The aluminium market in India will gradually evolve and extrusion and rolling products demand is expected to increase by 100kt in the next 3-4 years.

Havells India

CMP: Rs. 1341.35 Target: Rs. 1668 Upside Potential: 24% Recommendation: Buy

The company has a strong balance sheet and timely price hikes and a revival in Lloyd's margins would be key to earnings upside. Commodity price normalization and product cost-led initiatives would drive further margin improvement. In the last few years the company has expanded its presence in modern format retail, regional retailers and online which gives it a complete presence and helps in new product launches.

JSW Energy

CMP: Rs. 417.40 Target: Rs. 473 Upside Potential: 13% Recommendation: Buy

The management of the company has an ambitious target of reaching 20 GW of installed generation capacity and 40 GWh / 5 GW of energy storage by 2030 along with 1 GW of solar module manufacturing by April 2025. This growth will result in balance sheet size to grow at 22% CAGR from FY 2023-30. These targets are in line with its mission to become carbon neutral by 2050. The Company is well on track to achieve its capacity growth target of 10 GW much ahead of the stated timeline of FY 2025 and being future-ready with increased share of renewable and new energy solutions.

Indian Bank

CMP: Rs. 412.85 Target: Rs. 497 Upside Potential: 20% Recommendation: Buy

The bank reported improvement in its asset qualities along with healthy growth in advances and deposits. Its focus on digital banking will continue to support the business growth going forward. It is strategically expanding the business and its major thrust would be on retail, agriculture, and MSME sectors, targeting 10-12% credit growth in FY24.

Amara Raja Energy & Mobility

CMP: Rs. 762.60 Target: Rs. 904 Upside Potential: 19% Recommendation: Buy

According to the management of the company, the demand signals are positive across all product segments and it will continue to focus on cost optimization and work towards improving the operating margins. Moreover, it is expected to register healthy revenue growth, supported by steady growth in automotive and telecom segments, as well as strong traction witnessed in new energy business with increasing demand for EV chargers and battery packs.

Kalpataru Projects International

CMP: Rs. 630.95 Target: Rs. 761 Upside Potential: 21% Recommendation: Buy

According to the management of the company, the company continue to drive growth and create differentiation by strengthening capabilities organically and through strategic business development in newer areas like data centres, airports, heavy civil, design-build B&F projects, industrial projects and manufacturing expansion. It has established a strong diversified order book, expanded global reach and robust execution capabilities, which makes it well poised to deliver profitable growth while maintaining a strong balance sheet.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.