Top 7 Stocks To Invest In 2022
Indian equities markets have enjoyed a fantastic year, with the Nifty up approximately 22%. With gains of roughly 43 percent and 53 percent, respectively, the Nifty Midcap 100 and Nifty Small cap 100 excelled. Due to the continuation of the economic recovery and high-profit growth, Indian equity markets are expected to extend their gains in 2022. Based on the past three decades, the current bull market could last for a few more years, with multifold returns. According to ICICI Direct, while the midcap space is projected to continue to outperform in the medium term, IT companies may lead the rally, which will be supported by cyclical such as Capital goods, BFSI, Real Estate, and Auto stocks. The outperformance of midcap and small size equities is expected to continue in the coming year.
The company posted a strong set of financial results in Q2 FY22, thanks to improved ARPU and continued expansion in the 4G customer base. In Q2, consolidated EBITDA improved by 6.3 percent year over year, while reported PAT was Rs 1,134 crore. The Airtel Business division, which provides a wide range of digital solutions to businesses, might be the company’s next growth engine. Investing in Airtel is a long-term strategy. Choice Equity Broking has given the stock a “BUY” recommendation, with a target price of Rs 956 per share and a 41.5 percent upside potential.
Aditya Birla Fashion & Retail
ABFRL’s balance sheet has been bolstered by recent equity infusions, with net debt falling from Rs 2500 crore to Rs 870 crore. The stock has also experienced a faster 18-month retracement of the complete 52-month corrective downturn, indicating a strong price structure. The stock is predicted to hit Rs 360 in the coming months, representing a 161.8 percent external retracement of the previous significant loss in 2020. According to ICICI Direct Research, the stock has a 31 percent upside potential.
In Q2 FY22, the lender posted good results, with PAT increasing by 30% year over year, thanks to healthy loan growth of 17%, margin expansion, and lower NPA provisioning. Due to decreased reversals and robust growth in the high-margin unsecured portfolio, NII increased by 24.8 percent while NIM improved by 11bps. Choice Broking has given the company a “BUY” rating with a target price of Rs 900, valuing the standalone banking operation at Rs 710 (at a P/ABV of 2.5x FY24E) and the subsidiaries at Rs 190. The stock has a 22.3 percent upside potential.
Liquor stocks have made a tremendous comeback this year, hitting new highs and authoring a long-term chart turnaround. United Spirits’ price has broken out of a six-year consolidation phase, indicating a structural shift and the start of a new bull cycle. In the foreseeable future, the stock price is projected to surpass Rs 1,000. ICICI Direct has set a target price of Rs 1080, with a potential upside of 22%.
Schaeffler India Ltd
The company recorded a 20.7 percent sequential increase in total operating income to Rs 1,487.6 crore in Q3 CY2021. EBITDA margin improved by 99 basis points from quarter to quarter, resulting in a 27.7% increase in EBITDA. The reported profit after tax (PAT) climbed to Rs 170.8 crore. In the future, the company will gain from the automotive sector’s recovery, as well as increased exports to its parent company and other markets. In addition, government measures promoting indigenization will provide a boost to the sector. According to Choice Broking, the stock’s target price is Rs 10,380, with a 20.5 percent upside potential.
HDFC Life Insurance Company Ltd
In Q2 FY22, the company reported positive results, with a new business premium of Rs 6,596 crore, up 12.3% year on year. The total premium collection increased by 14.2 percent year over year. Due to industry tailwinds and the Exide Life transaction, the company’s performance metrics are projected to increase. HDFC LIFE is valued at a P/EV multiple of 4.4x (based on FY23 EV) by Choice Broking, resulting in a target price of Rs 833 and a 30.3 percent upside potential.
The BSE capital good index is showing signs of life after a 13-year hibernation. ABB appears promising in the capital goods area, as it has already broken out of a decade-long consolidation and is continuing to trend higher while maintaining a greater high-low ratio. The stock has experienced a speedier retracement of the previous falling segment, with the nine-quarter decrease retraced in just four quarters. The stock of ABB could rise to Rs 2750. According to ICICI Direct Research, the stock has a 25% upside potential.