Samvat 2078 will go down in the history as one of the most volatile years where in exuberance around Tech stocks and IPO boom was followed by Russia Ukraine war, multi decade high global inflation and fastest interest rate hikes in recent times.
“Amongst this hazy global scenario, India is today looking like a pearl in the ocean with benefits from food security, domestic demand driven economy, PLI scheme across manufacturing and defence, strong banking system with decade low NPA, strong infra capex and rising investments in Unicorns,” said brokerage and research firm Prabhudas Lilladher in a note while sharing its top stock picks for Diwali 2022.
Prabhudas Lilladher's top Diwali stock picks -
Large Cap Stock Picks
Apollo Hospitals Enterprise with a target price of ₹5,000, remains its top pick in the healthcare space; Avenue Supermart (TP: ₹5,121) remains its top pick to play the shift from unorganized to organized market in food and grocery; Bharti Airtel (TP: ₹1,032), ICICI Bank (TP: ₹950) & Mahindra & Mahindra or M&M (TP: ₹1,500) is its preferred pick in the autos space.
Mid Cap Stock Picks
Ashok Leyland with a target price of ₹200 as brokerage believes the company will continue to regain its lost share on the back model launches and revival in bus segment; Chambal Fertilisers & Chemicals (TP: ₹480) & Federal Bank (TP: ₹165).
Small Cap Stock Picks
Jubilant Ingrevia with a target price of ₹860, VIP Industries (TP: ₹1,020) & Westlife Development (TP: ₹847).
Even as high inflation has impacted demand in lower and lower middle sections, festive demand is buoyant with waned Covid impact, good monsoons, pick up in Infra & Real Estate development (Boosts employment) and strong hiring demand across sectors, the brokerage said.
“Although uncertain global environment and expected slowdown in US and Europe remain a concern, we believe India will successfully navigate this period and emerge stronger. We continue to prefer companies with presence in emerging segments, strong balance sheets and business moats,” it added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
