Stocks to buy: YES Sec sees Nifty hitting 32,000 in 2025; 16 stocks that may return up to 100% in 2022
The broker said with abundant liquidity to keep equities in the reckoning and growing institutional participation in the Indian markets, India is expected to continue gaining share in the emerging markets basket.
Analysts at YES Securities are enthused by potential increase in household consumption that they project will increase in the next four years to 46 per cent with household savings at 19 per cent of GDP. This will increase the quantum of disposable income to be spent on consumption.
This echoes the thoughts of Jefferies’ Global Head of Equities, Christopher Wood, who has skewed his portfolios in India’s favour expecting higher domestic demand.
“Interestingly, consumption will not be dented by inflation. YES research sees tell-tale signs of consumption revival on both ends of the spectrum – higher agricultural production to deal with food price pressure and increasing average monthly spend per credit cards in India,” YES Securities said.
The broker said India’s demographic dividend will bolster this consumption with India’s young population highest among top 10 economies in the world. It believes the gig economy will see a huge uptick with over 80 million jobs expected to be added in this decade and the contribution to GDP rising to as high as 10 per cent.
Earnings to rescue
The YES Bank-owned broker believes most troubled sectors will come out of the woods as earnings grow. The report entails reasons for trouble and the new reality of sectors like telecom, capital goods, pharma, banks, asset management, real estate, cement, discretionary, building materials among others.
Global markets have been volatile recently as indications are that the US Fed will start raising interest rates sooner than expected. The move will likely suck liquidity out of the market.
But, YES Securities believes US Taper Tantrums will not spoil the party on Dalal Street. Rise in the cost of capital will be extremely gradual with the FED normalizing ultra-cheap monetary policy. Indian trends are expected to follow the global benchmark.
Up to 100% upside
Here are YES Securities’ 16 stock picks that it believes may return up to 100 per cent in calendar 2022:
– Apollo Pipe (TP: Rs 1070, Upside: 100 per cent)
– Gland Pharma (TP: Rs 4500, Upside: 17 per cent)
– Polycab (TP: Rs 2723, Upside: 11 per cent)
– Sunteck Realty(TP: Rs 619, Upside: 24 per cent)
– CCL Products(TP: Rs 500, Upside: 18 per cent)
– ICICI Pru (TP: Rs 836, Upside: 47 per cent)
– Prestige Estate (TP: Rs 621, Upside: 32 per cent)
– Tata Motors (TP: Rs 566, Upside: 14 per cent)
– Reliance (TP: Rs 2860, Upside: 19 per cent)
– IGL (TP: Rs 620, Upside: 31 per cent)
– CRISIL (TP: Rs 3750, Upside: 30 per cent)
– VMart (TP: Rs 4516, Upside: 22 per cent)
– Dalmia (TP: Rs 1890, Upside: 41 per cent)
– IndiaMart (TP: Rs 9218, Upside: 40 per cent)
– SBICards (TP: Rs 1400, Upside: 51 per cent)
– SBIN (TP: Rs 660, Upside: 40 per cent)
