Face company Motilal Oswal has carefully selected leaders in various fields, including banking, hospitality, information technology, automotive, food and beverage, as part of the Diwali and Sam Vat 2078 top picks.
The choice is based on general macroeconomic trends, with high-frequency indicators doing well, exports stimulating a growth cycle in the second quarter of the current fiscal year, and the country somehow coping.
State Bank of India
Justification for Investment: Among public sector banks, SBI continues to do everything possible to restore the gradual recovery of the Indian economy, the investment firm said. Improved core operating results. It appears to be in a good position to report a significant increase in earnings due to the normalization of borrowing costs.
Recovery is ongoing across all three Tata Motors business units. The commercial vehicle business in India had to recover cyclically, but JLR went through a periodic and structural period, supported by a good product mix.
This could restore JLR’s EBIT margins and leave room for surprises in profitability. India’s private fleet (CAGR 34%) will experience a structural recovery, supported by an updated product portfolio and increased market share.
Infosys expects to achieve the highest quartile growth of 2021-22 in the 2020-21 period due to its strong capabilities and sharp increase in transaction acquisitions.
Motilal Oswal expects Infosys to maintain margins, driven by strong revenue growth and subsequent operational leverage, further pyramid leveling and ongoing operational efficiency measures.
Ultratech Cement occupies a leading position in the region and helps maintain first-class prices in most markets. With an annual cement production capacity of 19.5 million tonnes, sales CAGR will be 10% in 2020-21 and 2023-24.
For a securities firm, Ultratech Cement is making money in 2023-24, and its RoE is increasing through 2023-24 due to higher asset turnover due to increased employment, steady decline in debt, and increased EBIT margins. A 15% increase is expected. ..
Recovery from the second wave of COVID is faster than recovery in 2020-21 and continues to improve.
The outlook looks promising as trading channels return to normal, luxury home options increase, and the ongoing strategic review of half of the popular portfolios is completed on December 21.
This gives the Prestige & Above (P&A) segment a bigger advantage. .. Also in terms of growth and profitability, as well as the recent takeover of a new CEO, the potential for success in the P&A segment increases the company’s opportunities.