Among industries, metals and information technology grew the fastest, while FMCG grew the slowest. During the fiscal year, stocks in the auto and real estate sectors have performed well. “While FY21 was very stable and progressive, assisted by low estimates and a low base, March was a mixed bag,” said the Chief Investment Officer at Axis Securities. The new fiscal year 2021-22 will focus on earnings growth and sustaining demand momentum.
Top Picks for Stocks
State Bank of India: It will take a 31% increase in SBI stock from the previous close to reaching Axis Securities’ target price of Rs 477. With a balanced PCR, resilient capitalization, a good liability franchise, and strengthened asset quality, SBI remains the best bet on the Indian economy’s gradual recovery among PSU banks.
Tech Mahindra: Axis Securities claims that Tech Mahindra has a long-term sustainable market structure. It has advised a ‘buy’ recommendation and a 14x P/E multiple on its FY23E profits of Rs 81, resulting in a target price of Rs 1,116 per share.
HCL Technologies: The brokerage firm has set a target price of Rs 1,088 per share, an 11% increase. The recent deal pattern is positive for HCL technology and represents momentum in the Retail & CPG, Manufacturing, and BFSI verticals.
Bharti Airtel: Bharti Airtel posted solid numbers in Q2FY21, exceeding both financial and operating expectations. To reach the target price of Rs 676, a 31% increase is expected.
Nifty Target Estimate
The BSE Sensex and Nifty 50 finished the fiscal year 2020-21 on a high note, with positive returns across the council. Axis Securities has kept its December Nifty 50 index goal of 17,200 unchanged. According to the brokerage firm, earnings growth for the entire decade from 2010 to 2020 was very slow, with an earnings CAGR of 7%. (doubling in 10 years). On the broader market, mid and small-cap stocks outperformed large-cap stocks by a wide margin in FY21. According to a domestic brokerage firm, this pattern is expected to continue in FY22, and earnings growth for the broader market is expected to be very high.