Stocks On Growth; Experts Bet on their Recovery Pay
A list of stocks from various experts that are likely to offer recovery pay:
JK Lakshmi Cement:
In the cement space, JK Lakshmi Cement is our top pick given the strong demand outlook and cheap valuations.
It is our top pick in the consumer durable space due to the proliferation of work from home.
Page Industries & Swaraj Engines:
It is our top pick in the consumer discretionary space while Swaraj Engines are our top picks in the Auto & Ancillary space.
We believe that the stock of ACC is well-trained for a re-rating given the strong expected earnings growth and improved profitability.
IDFC First Bank:
The loan book is set to grow at 15.7% CAGR to Rs 1,32,665.3 crore by FY23 driven by faster growth of its retail book to Rs 1,11,933 crore (25% CAGR) and a flattish trend in corporate advances.
Over the period FY17-20, the performance of GCPL had been lackluster. Revenues grew less than 1% CAGR while the earnings grew by a mere 4.7% CAGR given the flattish growth of the Indian market.
The recovering economy is expected to fuel the domestic demand for two-wheelers and therefore an upside potential of 10%-15% can be seen.
With the return of normalcy, the demand for fuel is expected to grow both retail and industrial and therefore an upside of 10% can be expected.
The construction and Infrastructure segment is expected to resume once the pandemic situation comes under control and with economic recovery, this seems to be a lucrative opportunity with an upside potential of 15%
With the restoring of normalcy and reducing travel restrictions, the Aviation sector is expected to come back to pre-COVID levels and an upside of 11% can be seen here.