ITC, Titan and SBI among top 24 stocks to watch out for in FY24

With the global macro situation throwing the bulls out of gear in FY23, traders are taking a cautious approach while investors are seeing the downturn as an opportunity to accumulate their favourite stocks.

“In this volatile market environment, it is judicious to carefully add positions in a gradual manner in quality stocks, where there is visibility in earnings and comfort on valuation. Also given the near-term volatility in the market it is important for investors to keep an investment horizon of at least 1-3 years, to generate better returns,” Sharekhan said.

To find out which stocks should be on the top of your watchlist, we reached out to various brokerages to curate a list of 24 stocks for FY24.

Sanjeev Hota, Vice President and Head of Research at Sharekhan BNP Paribas 1) L&T
We maintain a Buy on L&T with a revised PT of Rs 2,600 (upgrading our target P/E for the core business), given strong execution and margin tailwinds and improving return ratios in the capex upcycle.

2) ITC
The stock trades at 22.6x and 20.4x its FY24E and FY25E EPS, a stark discount to some large consumer goods stocks. Consistent earnings growth, a strong dividend payout and sustained ESG rating along with potential value-unlocking in the hotel/IT business will reduce valuation gap going ahead.

3) HAL
HAL has strong government support, proven execution capabilities, capacity expansion, improving working capital cycle and healthy cash balance. It trades at ~17x FY24E EPS and ~15xFY25E EPS, lower than listed peers.4) SBI
We believe there is an investment case for gradual improvement in the core ROA trajectory in the near term.

At the CMP, SBI trades at 0.8x/0.7x its FY2024E/FY2025 core ABV. It is our top pick among PSU banks and is available at a bargain valuation.

5) SRF Ltd
Investment in right areas of specialty chemical business would improve earnings quality and safeguard from cyclical packaging film margins. Vinit Bolinjkar, Head of Research, Ventura Securities

6) Tata Motors
Transformation of the JLR and domestic PV business through new models and EV launches, along with a cyclical recovery in CV segment and vehicle scrapping should drive a turnaround in the business performance. Deleveraging and lower capex requirements to drive positive FCF. 7) Varun Beverages
VBL’s efforts on expanding its distribution network and increasing capacity to capitalize on new opportunities by coming out with new products (recently acquired Sting energy drink) will result in increased penetration and improved market share.

8) NTPC
NTPC’s total power generation capacity is at 71.6 GW, out of which 3.2 GW is solar & wind. The company is targeting 32GW of solar+wind capacity by 2032. NTPC’s profitability is backed by long-term PPAs based on cost-plus tariff structure, thereby ensuring adequate recovery of RoE.

9) National Aluminum Co Ltd
The company is the lowest-cost producer of metallurgical grade alumina in the world and lowest-cost producer of bauxite in the world as per Wood McKenzie report. The 1mtpa capacity expansion of the alumina refinery is targeted to be commissioned by Jan’24. 10) Indraprastha Gas
IGL has been awarded 5 GAs to develop 400+ CNG stations, 1.5 Mn+ new connections, and 9,500 Km+ steel pipeline in the next few years, which will likely drive future growth.

11) Bharat Dynamics
BDL is the sole manufacturer of rockets & missiles in India. Increasing demand for rockets and missiles from all the 3 wings of defence – Army, Air Force and Navy has significantly improved the order book, which is likely to sustain for the next 8-10 years. Nirvi Ashar – Fundamental Analyst, Religare Broking

12) Dalmia Bharat
We estimate its revenue/EBITDA/PAT to grow at 23%/25%/31% CAGR over FY22-25E and remain optimistic on the long term growth prospects of the company. We have a Buy rating with a target price of Rs 2,291. 13) Maruti Suzuki
We have estimated its revenue/EBITDA/PAT to grow at 18.8%/41.0%/45.4% CAGR over FY22-25E and have recommended a Buy rating with a target price of Rs 11,501.

14) Britannia Industries
Financially, we have estimated its revenue/EBITDA/PAT to grow at 15%/19%/21.7% CAGR between FY22-25E and have recommended an Accumulate rating with a target price of Rs 5,117. 15) HCL Technologies
We estimate its revenue/EBIT growth in INR terms to grow at 15.3%/17.2% CAGR over FY22-25E and have recommended a Buy rating with a target price of Rs 1,333. 16) ICICI Bank
We remain positive on the bank on the back of credit growth, improvement in asset quality, improving margins and various digital initiatives.

We expect total income/PAT to grow at CAGR of 19%/28% and advances/deposits to grow at a CAGR 19%/13% for the period FY22-FY25E. Target price: Rs 1,157. Varun Saboo, Head – Equities, Anand Rathi Shares and Stock Brokers

17) Bandhan Bank
Worst is in the price. The performance will keep improving from current levels (as highlighted in management commentary). Valuations at 1.2x FY24E book are extremely attractive.

18) Mahindra Finance
It’s already in an upcycle, performance should continue to remain strong. With RBI’s norms over the years strengthening and company’s own internal processes also becoming more stringent, downcycle impact should be lesser. This stock clearly warrants a material valuation rerate.

19) Sagar Cement
This company has consistently been adding capacity moving from about 3mnt to about 11.5 mnt now. They recently closed a successful transaction acquiring Andhra Cement. There should definitely be a valuation rerating here.

20) Astral
The company has been witnessing a strong demand environment. Expect their performance to remain very strong going forward. CMP around Rs 1300, expect to move to Rs

1800 odd levels. 21) HG infra
The company has been showing strong growth and good accumulation in order booking. We expect a minimum 25%+ revenue CAGR over the next 2-3 years.

The stock is trading around 7x and can easily move to 10x in the base case. Amnish Aggarwal – Head of Research, Prabhudas Lilladher 22) ABB
ABB India remains a structural play in the long run.

Considering robust enquiry pipeline, penetration in Tier 3 & 4 markets driving volume growth across businesses and focus on operational efficiencies, we expect ABB to report revenue and PAT CAGR of 17.5% and 17.6% between CY22-CY24. We have an accumulate rating on the stock with a target of Rs 3371 valuing it at PE of 67x CY24E. 23) Havells
It is India’s leading diversified FMEG player with 21 product verticals covering 70% of household electric sockets.

We have a BUY on Havells with a DCF-based TP of Rs 1447 (implied 47x FY24 earning). 24) Titan
Titan is well-placed to capitalize on long-term growth opportunities. We expect 24.9% EPS CAGR over FY22-25.

We have a BUY rating with DCF based stock price target of Rs 2905.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of Economic Times)

Tags:

amf-bowling listed on couponmatrix.ukbritish-gas-energy listed on couponmatrix.ukclink-hostels listed on couponmatrix.ukco-op-uk listed on couponmatrix.ukdrinkwell listed on couponmatrix.ukprocook listed on couponmatrix.uk
amf-bowling listed on couponmatrix.ukWhether you’re planning a fun activity with family, friends or colleagues, AMF bowling is bound to put a smile on every face! Grab an AMF Bowling promo code from us to cut the cost of your visit to state-of-the-art bowling alleys all over the UK. With mouth-watering food and drink, awesome arcades and exciting virtual reality games, you can guarantee the perfect balance of a little healthy competition and a whole lot of fun! Allow AMF Bowling to banish those Sunday blues or make your birthday one to remember and book your ten pin bowling experience today!
british-gas-energy listed on couponmatrix.ukBelieve it or not, British Gas has been providing energy solutions to UK homes since before Queen Victoria was on the throne - and even before the invention of electricity! Starting life in 1812 as a gas company, British Gas has been (literally) lighting the way for British homes for over 200 years. Today, British Gas keeps over 11 million homes running and, with the latest British Gas Energy discount from us, you can benefit from energy tariffs which are fairly priced and easy to understand.
clink-hostels listed on couponmatrix.ukSituated in the heart of London and Amsterdam, Clink Hostels is perfect when you need somewhere to crash after a night of partying or a quiet place to rest your head after a long day of sightseeing. Explore the urban jungle for less with the discounts available at this affordable hostel chain, including early bird savings, 30% off 7+ night stays and free breakfast. Complete your booking with a Clink Hostels voucher code from Groupon and you’ll find yourself with even more cash to power your adventures. Whether it’s a percentage off your total stay, a free night’s stay or complimentary breakfast, we’ll help you get the best deal possible with our Clink Hostels discount codes. At Groupon, we’re always refreshing our page with new deals, so be sure to check here before placing your Clink Hostels booking – you can save 25% on bookings made more than 30 days in advance, and there’s a 15% youth discount to make your travels as cheap as possible. Place your Clink Hostels booking as far in advance as possible to get the best price, and don’t forget to check if you’re eligible for the youth discount or the free breakfast. We’ve got the scoop on all the best Clink Hostels promo codes available now, so you’ll never miss out on a great deal if you keep our page bookmarked. Travelling around Europe doesn’t have to cost the earth if you let Groupon help you out!
co-op-uk listed on couponmatrix.ukWhether you’re searching for quality convenience food or affordable ingredients to create your own dishes from scratch, allow Co-op Food to fill your cupboards with food while keeping your bank balance intact. Choose one of the UK’s largest food retailers to stock up on your favourite feeds, and add a Co-op discount code from us to cut the cost down to size. Whether you need Co-op cheese for your next dinner party, a tasty sandwich while on the run, or a gooey chocolate cake for a special occasion, you won’t be disappointed.
drinkwell listed on couponmatrix.ukIt can’t promise you won’t wake up with a sore head, but DrinkWell can promise low-calorie yet utterly delicious alcoholic beverages. From vegetarian wine to gluten-free beer, stock up on drink supplies with DrinkWell’s healthier alternatives to traditional alcoholic drinks. All products are stamped with the 100% Happiness Promise, and a DrinkWell discount code from Groupon keeps these ales and spirits as low-cost as they are low-calorie. Check back regularly for the latest DrinkWell promotions, and subscribe to the brand’s newsletter for a chance to win vouchers and other great freebies.
procook listed on couponmatrix.ukSlicing and sizzling a new recipe can become your favourite pastime with ProCook, the knife and cookware supplier who specialise in sending professional cooking equipment direct to your door. Expand your culinary horizons with a ProCook discount code and you slash double digits off everything from cast iron casserole dishes to stainless steel steamer sets. With baking tools, tableware and an array of kitchen accessories to liven up your dining experience, ProCook can help you rediscover the joys of preparing, cooking and serving delicious dishes.