Multibagger Stock: With Nifty, the Indian equity markets gained about 22% this year. Nifty Midcap 100 and Nifty Smallcap 100 outperformed with gains of 43% and 53% respectively. The gains in the Indian equity markets are likely to increase in 2022 as well, on the back of continued economic recovery and strong earnings growth. According to the history of three decades, the current bull market is likely to continue with manifold gains for the next few years.
According to ICICI Direct, the midcap space is expected to extend its outperformance in the near future, but IT stocks may lead the rally backed by cyclical stocks like capital goods, BFSI, real estate and auto stocks. Midcap and smallcap stocks are likely to perform better in the coming year as well:-
target price: 956 Rs per share
The company registered a strong set of financial performance during Q2 FY22, owing to high ARPU and continued growth in 4G customer base. Consolidated EBITDA QoQ grew by 6.3%, while the reported PAT stood at Rs 1,134 crore in Q2. The Airtel Business vertical, which provides digital solutions to enterprises, could be the next growth engine for the company. Investing in Airtel will be a long term game. Choice Equity Broking has given a “Buy” rating on the stock with a target price of Rs 956 per share and an upside potential of 41.5%.
Aditya Birla Fashion & Retail
target price: Rs 360 per share
ABFRL has strengthened its balance sheet through recent equity infusion, net debt has come down from Rs 2500 crore to Rs 870 crore. The stock has seen a bullish retracement of the entire 52-month corrective decline in just 18 months, indicating a strong price structure. According to ICICI Direct Research, the share price is expected to touch Rs 360 in the coming months as it is an external retracement of 161.8% from the previous major decline in 2020. According to ICICI Direct Research, the stock is likely to go up 31%.
target price: 900 Rs per share
The lender reported a strong performance in Q2 of FY12 with PAT growth of 30%, driven by healthy credit growth of 17%, margin expansion and lower NPA provisioning. NII rose by 24.8% as NIM improved by 11bps, driven by higher growth in low reversal, high-margin unsecured portfolios. Choice Broking has given a “Buy” rating to the stock with a target price of Rs 900 and a target price of Rs 710 (at P/ABV of 2.5x FY24E) and the valuation of the subsidiary companies with a target price of Rs 190. , The stock may go up 22.3%.
target price: Rs 1080 per share
Liquor stocks registered a strong recovery this year, moving towards new highs on the long-term charts. United Spirits price has exited its six-year consolidation phase, indicating a structural change and a new bull cycle ahead. The share price is likely to exceed Rs 1,000 in the near future. ICICI Direct has set a target price of Rs 1080 with a growth potential of 22%.
Schaeffler India Ltd
Target Price: Rs 10,380 per share
During Q3 CY2021, the company registered a sequential growth of 20.7% in total operating income, which stood at Rs 1,487.6 crore. EBITDA margin increased by 99bps QoQ, leading to an increase of 27.7% in EBITDA. PAT increased to Rs 170.8 crore. Going forward, the company will benefit from a revival in the automotive sector and higher exports to its parent company and other markets. In addition, the government’s policies to promote indigenization will act as a tailwind for the sector. As per Choice Broking, the target price is Rs 10,380 and the upside potential for the stock is 20.5%.
HDFC Life Insurance Company Ltd
Target Price: Rs 833 per share
The company posted encouraging numbers in the second quarter of FY12, with news business premium at Rs 6,596 crore, up 12.3% year-on-year. The overall premium collection grew by 14.2% yoy. The company is likely to improve its performance metrics in this segment due to tailwinds and Exide Life deals. Choice Broking expects HDFC Life to hit a target price of Rs 833 at a P/EV multiplier of 4.4 times (based on FY23 EV) and an upside potential of 30.3%.
target price: 2750 Rs per share
BSE’s Capital Good Index is coming out of 13 years of hibernation showing strength. Within the capital goods space, ABB looks positive as it has already recorded a breakout above the decade-long consolidation and continues the higher trend while maintaining higher high-lows. The stock has seen a sharp retracement of the last falling segment as the nine quarterly’s decline was completely retracted in just four quarters. According to ICICI Direct Research, ABB stock can move up to Rs 2750. The upside probability for the stock is 25%.
Hindustan Unilever Limited (HUL)
target price: Rs 2821 per share
On the back of 4% YoY volume growth and 7% pricing growth, the company posted a consolidated top-line growth of 11.4% (YoY) in Q2 FY22. Consolidated EBITDA increased by 10.3% while reported PAT increased by 10.5%. Despite HUL’s share price falling nearly 16.2 per cent in the last three months, Choice Broking gave a “Buy” rating on the stock with a target price of Rs 2,821 per share and an upside potential of 22.6%.
target price: Rs 1485 per share
The IT sector is leading the ongoing bull run and HCL Technology has been in a steady uptrend after its multi-year breakout in 2020. The company is well positioned to deliver strong growth in IT services and ER&D space on account of improvement in TCV. ICICI Direct Research remains positive on the stock and has set a target price of Rs 1485. The stock has an upside potential of 17%.
target price: Rs 2150 per share
In Q2 FY22, the company registered a sequential growth of 6.1% in consolidated total revenue. Digital revenue grew 42.4% annually and was approximately 56.1% of total revenue. At a CMP of Rs 1,866, Infosys is currently trading at a TTM P/E multiplier of 37.6x. Based on FY23E earnings, it is trading at a P/E multiplier of 30.5x. Keeping in mind the strong outlook and growth leadership of the company in this sector, Choice brokerage firm has fixed a target price of Rs 2,150 per share for the stock. The stock is expected to rise by 15.2%.
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