Private sector lender IDFC First Bank, auto and tractor manufacturer Mahindra & Mahindra Ltd. are among the six names that brokerage firm Anand Rathi Securities is recommending investors for Samvat 2080. For the ongoing Samvat, the Nifty 50 has gained close to 9% so far, while broader markets have outperformed.
The brokerage sees potential upside ranging between 15% and 37% among these six names over the next 12 months.
Stock | Price Target (12-Months) | Potential Upside |
Mahindra & Mahindra | 1,770 | 18% |
TVS Motor Company | 1,850 | 15% |
IDFC First Bank | 114 | 37% |
Syrma SGS Technology | 735 | 20% |
MTAR Technologies | 2,970 | 20% |
DLF | 640 | 16% |
Lets take a look at these six names in greater detail:
Mahindra & Mahindra
Mahindra & Mahindra is the dominant market leader in the domestic tractor market with a market share of nearly 43%. Anand Rathi believes that the company is likely to maintain its leadership position courtesy of its well-entrenched sales and services network, offerings across different brands, and the soon-to-be launched Oja.
It also has a healthy pipeline to introduce five new products on the INGLO platform from December 2024. “We believe that the company’s strategic approach with a strong balance sheet will continue to leverage its performance,” the brokerage said. It has recommended a “buy” rating with a price target of ₹1,770.
TVS Motor Company
It expects the company to outperform the industry on the back of new product launches in the ICE and EV segments, greater exports focus, premiumisation, operating leverage, benign input prices and price hikes. Anand Rathi’s “buy” rating on the stock comes with a price target of ₹1,850.
IDFC First Bank
The Mumbai-based private lender has undergone the first phase of its transformation from being an infra financier to a granular retail-lending bank. However, the brokerage expects costs to remain high in the near-term due to investing in technology and building a scalable liability franchise, despite strong and granular loan growth.
Syrma SGS Technology
With an order book of over ₹3,500 crore, of which ₹2,200 crore to ₹2,300 crore worth of orders are to be delivered in the next 12 months, Anand Rathi features Syrma as one of its top picks. The company has also planned a capex worth ₹200 crore to ₹250 crore for the year.
MTAR Technologies
The company is also considering new facilities in Europe and the US to enhance its supply chain and competitiveness. The management has maintained its financial year 2024 order book target of ₹1,500 crore. Anand Rathi has a price target of ₹2,970 on the stock.
DLF
(Edited by : Hormaz Fatakia)
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.