According to brokerage and research firm Yes Securities, in the midst of the current uncertainty, volatility can be anticipated as an inevitable factor because any negative news from Europe or any new escalation of hostilities between Russia and Ukraine might throw all asset classes out of synchronisation.
Despite this, India continues to have a sound structural foundation and is currently the global market with the fastest rate of growth. It is important to highlight that markets like Indonesia and the Philippines, which have comparable profiles to India, are also seeing downgrades, according to the paper.
Shree Cement is one of Yes Securities’ top stock selections for Diwali in 2022. According to Yes Securities, which has maintained a Buy recommendation on the company and a target price of 25,450, Shree Cement has a very strong financial sheet, giving it the flexibility to develop its capacity quickly.
Greenply Industries: The brokerage firm is convinced that Greenply Industries (GIL) has what it takes to seize the moment and establish itself as a player in the value-added sector. It can anticipate that GIL will provide quantifiable value to all of its stakeholders with a sound balance sheet and an asset-light approach to expansion in specific product sectors. (TP: ₹220)
Insurer ICICI Prudential Life: “Within the private insurance sector, there is a growing polarisation in favour of the major firms supported by the biggest private banks and financial institutions in India. They are better positioned to take advantage of the growing sector prospects, and we are convinced that IPRU has a sizable development runway with all of its levers in place. (TP: ₹650)
Projects by Prestige Estates: Given the persistent unmet demand in the residential market, the improved leasing situation, and the rebound in the retail and hospitality sectors, Yes Securities expressed optimism about Prestige Estates’ ability to maintain its strong performance. (TP: ₹550)
V-Guard Industries: The brokerage has a favourable opinion of the stock since it has demonstrated the ability to increase revenue while concentrating on premiumizing its expanding product line and increasing the percentage of in-house manufacturing. (TP: ₹301)
SBI: “SBI has maintained its asset/liability market share over the last five years, and with rising indications of a stronger corporate credit demand, we regard SBI as one of the best equipped banks to ride the upturn.” (TP: ₹655)
HCL Technologies: The brokerage believes that HCL Tech will be able to deliver organic growth in capital-efficient ways, ride the next phase of growth, and at the same time, it would be able to harness key disruptions and seize evolving opportunities. The company has a strong franchise and an unwavering focus on momentum and growth. (TP: ₹1,210)