JM FINANCIAL SERVICES RESEARCH
BHEL
CMP: Rs 311 | Target: Rs 360
Focus on nuclear plants as well as new advanced ultra-supercritical thermal power plants of higher efficiency with 800 MW capacity should benefit BHEL in a meaningful way.
PNB Housing
CMP: Rs 781 | Target: Rs 970
Focus on affordable housing as budget announced following incentives PM Awas outlay and allocation of Rs 2.2 trillion under Pradhan Mantri Awas Yojana in the current year is a massive increase. This should help HFCs significantly with PNB Housing being the top pick.
Syrma SGS Technology
CMP: Rs 470 | Target: Rs 525
Focus on manufacturing and an increase in basic customs duty on printed circuit board assembly of specified telecom equipment should benefit Syrma significantly.
MOTILAL OSWAL FINANCIAL SERVICES
Larsen & Toubro
CMP: Rs 3623 | Target: Rs 4,150
The government has maintained the capex target of `11.1 trillion and we expect L&T to remain a key beneficiary of government spending, particularly in areas like water, urban transportation, bridges, B&F and renewables.
Godrej Properties
CMP: Rs 3,111 | Target: Rs 3,600
The much-talked-about indexation norm in the budget will not have any impact on primary housing demand in India. Godrej will continue to deliver 20%-plus growth in the near term.
Senco Gold
CMP: Rs 946 | Target: Rs 1,350
The govt has reduced customs duty on imports of gold and silver. Senco Gold as is one of the most promising players in organised retail jewellery and has a pan-India presence.
IIFL SECURITIES
Kaynes Technology
CMP: Rs 4,142 | Target Rs 4,740
We believe Kaynes is likely to benefit as one of its flagship products, the TCAS, and the interlocking system will help in accelerating into the railway sector.
Quess Corp CMP: Rs 710 | Target: Rs 744
Several schemes for upskilling and training employees and students are positive for staffing companies, like Quess Corp, as the government will spend Rs 2 trillion over 5 years to facilitate employment, skilling, and other opportunities for 41m youths.
Aditya Vision
CMP: Rs 4,890 | Target: Rs 5,452
Several announcements for Bihar are likely to benefit Aditya Vision, which is the dominant electronics retailer with over 50% market share. It is also the largest retailer in the state of Jharkhand and has forayed into eastern Uttar Pradesh.
KOTAK SECURITIES
Adani Ports
CMP: Rs 1,487 | Target: Rs 1,650
The outperformance of the stock can continue, with a boost to margins as the company is sitting on a capacity bank 5-6X of its existing capacity. The group’s financial situation is also improving for its listed entities.
Life Insurance Corp
CMP: Rs 1,161 | Target: Rs 1,300
LIC is well positioned to ride the growth in a highly underinsured market, both in terms of penetration and density. LIC has been diversifying into higher-margin non-par products improving its Value of New Business margins.
Zomato
CMP: Rs 219 | Target: Rs 225
Growth momentum in the food delivery business will remain reasonably healthy. The Blinkit business continues to scale, well driven by new store additions and improving customer engagement.
SHAREKHAN
Hindustan Unilever
CMP: Rs 2,709 | Target: Rs 3,260
Better monsoons and higher allocation to rural development schemes will help in a steady recovery in consumption growth in rural India. HUL will be one of the key beneficiaries.
Canfin Homes
CMP: Rs 831 | Target: Rs 1,050
An additional 3 crore houses under PM Awas Yojana is potentially positive for housing finance companies as it will improve mortgage credit penetration. HFCs like Canfin Homes are likely to be big beneficiaries.
Dee Development Engineers
CMP: Rs 367 | Target: Rs 450
The company is leveraging its industry-leading position and enhancing manufacturing capacities to capitalise on a capex revival which was one of the key focus areas in the Budget.