1 / 10Bharti Airtel: Bharti’s execution has been top-notch in the last few quarters, evident from a strong 16 percent India Mobile EBITDA growth cumulatively in the last two quarters, said the brokerage. Robust 10 million subscribers additions lead to cumulative ARPU improvement of 5 percent, it added. It expects a 42 percent upside in the next 12 months.
2 / 10State Bank of India: The brokerage sees a 37 percent upside for the public sector lender in the next 12 months. MOSL believes the earnings normalisation cycle for the SBI has begun and it remains the best play among the PSU banks, on gradual recovery in the Indian economy, robust capitalisation, a strong liability franchise, and improved core operating profitability.
3 / 10Hero MotoCorp: As per the brokerage, the stock is poised for faster recovery over other two-wheeler peers due to its rural-focused portfolio and market leadership in the entry and executive segments. Considering its improved competitive positioning post-BS-6, the firm should continue to see good demand with its economy-executive focused portfolio, it added. MOSL sees a 26 percent upside in the stock in the next 12 months.
4 / 10Infosys: The brokerage expects the firm to rise by 26 percent by the next Samvat. MOSL believes Infosys to be a key beneficiary in terms of recovery in IT spends in FY22. Infosys remains its top pick within the sector given its headroom for margin expansion and strong deal wins.
5 / 10UltraTech Cement: As per the brokerage, the company has a strong pan-India distribution network and preferred supplier status for key infrastructure projects. This places it in a good position to tap into expected growth in both retail and institutional (non-trade) cement demand in India, it further noted. It sees the stock rising 21 percent in the next 1 year.
6 / 10ICICI Bank: The private sector lender continues to see strong growth in retail deposits and has succeeded in building a robust liability franchise over the past few years which continues to improve, the brokerage stated. It added that business trends are improving, with disbursement reaching pre-COVID/higher than pre-COVID levels (in some segments). It expects a 20 percent upside from the stock in the next 12 months.
7 / 10Crompton Consumer: According to MOSL, Crompton has further consolidated its position in the fans and pumps market, and has become the number 2 player in the Water heaters segment. Despite the strong element of pent-up demand playing out recently, it believes underlying demand to be in positive territory, which should sustain/improve going forward. It expects the stock to gain 17 percent in the next 12 months.
8 / 10Dabur India: Dabur’s investment case is strong, supported by (a) dedicated focus on the Herbal segment, (b) power brand strategy, (c) a spate of new launches, (d) an increasing direct distribution reach, and (e) cost savings which would be plowed back into the business, the brokerage explained. It sees a 15 percent upside in the stock in the next 12 months.
9 / 10PI Industries: MOSL believes PI has levers in place to sustain the growth momentum, led by (a) ramp-up in operations of two multi-purpose plants, (b) revenue from the Isagro acquisition, (c) sustained growth momentum in the CSM business, and (d) product launches in the domestic market providing earnings visibility.
10 / 10Divi's Labs: The brokerage is positive on the stock given favorable demand for APIs, margin enhancement owing to an increase in the in-house manufacturing of intermediates and additional revenue from the new CAPEX. MOSL sees a 10 percent upside in the stock in 1 year.
