1 / 10Reliance Industries: The brokerage sees an 11 percent upside in the stock to Rs 2,054 in the coming 12 months. As per the IIFL, the Retail and Jio businesses have enabled significant deleveraging and are turning in a solid performance which is offsetting weakness in the refining segment. It expects Reliance to register 18 percent per annum PAT growth over FY21-23E largely driven by B2C businesses.
2 / 10Infosys: IIFL believes that Infosys is well placed to gain wallet share within clients led by its cloud offerings, automation-led solutions and an institutionalized large deals team with a focus on higher win rates. Underpinned by higher visibility, Infosys has guided for 2-3 percent constant-currency YoY growth in FY21E, a year when most peers will likely witness revenue declines. The brokerage also believes Infosys will outperform TCS on revenue growth by over 500 bps in FY21E, for the first time in 15 years. The brokerage sees a 32 percent upside with a target at Rs 1,400 per share.
3 / 10ICICI Bank: As per IIFL, ICICI Bank is well placed in the current scenario to gain market share across loans, deposits and revenues on the back of its funding position and product offerings. It expects loan growth of 12 percent CAGR over FY20-23E aided by higher growth in the retail loans. Almost all group businesses will end up on a stronger footing versus peers in the medium term, it added. It sees a 27 percent upside in the stock with a target at Rs 530 per share.
4 / 10HCL Technologies: The brokerage believes that HCL’s portfolio is relatively insulated versus peers as it has a lower concentration to verticals like travel, energy, hospitality, etc. and higher exposure to low-impact verticals like BFSI, healthcare and technology. Aided by a healthy mix of recurring product revenue & managed services, it expects HCL Tech to post a US revenue CAGR of 6 percent over FY20-22E with earnings CAGR of 12 percent. IIFL sees a 23 percent upside in the coming 12 months with a target at Rs 1,000 per share.
5 / 10Dr. Reddy's Laboratories: The brokerage said that Dr Reddy’s Laboratories is India’s second-largest pharmaceutical company in terms of revenue with US Formulations accounting for 39 percent of the revenue in FY20. It further added that DRL has recently had a string of good new launches in the US market and the momentum is likely to sustain, with anticipated launches for generic Nuvaring & Vascepa in FY22E. It sees a 19 percent upside in the stock in 12 months with a target at Rs 5,800 per share.
6 / 10Tube Investments of India: With 56 percent of consolidated revenues linked to the auto sector, IIFL believes that the firm is a direct play on domestic auto-recovery on account of its strong leadership position in the auto components segment (2W and PV), supported by well-spread manufacturing capacities. It has taken a conscious call to lower dependence on the auto sector and made tremendous progress over the past four years in the non-auto business, added IIFL. The brokerage sees a 13 percent upside in the stock with a target at Rs 751 per share.
7 / 10Apollo Tyres: Apollo Tyres is the largest CV tyre manufacturer in India, with 25 percent market share in the Truck and Bus segment and 15 percent market share in PV segment. IIFL believes that FY21 is likely to be a tough year due to a continued fall in original equipment (OE) sales but the situation is likely to improve sharply in FY22, with a strong rebound in OE sales and normalization of replacement demand.
8 / 10Persistent Systems: Persistent Systems, a mid-size IT services company, would benefit on account of large deal wins in the past few quarters. Led by a restructured sales-force and driven senior management, IIFL believes Persistent could witness double-digit revenue CAGR over the next three years. The BFSI vertical and its Salesforce practice are likely to be key revenue drivers for Persistent, it added. It sees a 32 percent upside in the stock in the next 1 year with a target at Rs 1,470 per share.
9 / 10JB Chemicals & Pharmaceuticals: The company has been outperforming the Indian pharma market and IIFL expects this outperformance to sustain on account of new launches and strong growth in the focused-products group. The brokerage forecasts the firm's EPS to log 18 percent CAGR over FY20-23E. It also sees a 14 percent upside in the stock with a target at Rs 1,125 per share.
10 / 10Security & Intelligence Services (India): The firm is one of the leading providers of private security and facility management services in India. IIFL believes that SIS can benefit from the weakening of informal and marginal competitors in the current environment and expects SIS to be the least-impacted among business services companies. The brokerage expects a 46 percent upside in the stock with a target at Rs 560 per share.
