These six stocks are hot picks in festival season. here’s why

Earlier this week in its report, Axis Securities said: Festivals are times that bring a state of excitement to life, creating mental space and good vibes between us all and making the global environment conducive to generating demand, especially for consumer products. in the economy.”

“After witnessing two muted years that were impacted due to intermittent Covid-19 disruptions, the party spirit has finally returned to pre-Covid levels. This year the excitement seems to have revived and economic activities are regaining momentum, thanks to the large-scale vaccination campaign undertaken by the Government of India (which reached the remarkable milestone of 213 Cr on 4 Sep 22),” the report adds.

Multiple catalysts are triggering renewed excitement in the air, according to Axis Securities. These are:

1. The remarkable resilience of the Indian economy in FY23 to date, with a slight uptick visible in most high-frequency indicators.

2. The remarkable resilience of the Indian economy in FY23 to date, with a slight uptick visible in most high-frequency indicators.

3. Improvements in urban demand along with rural demand are also poised to improve as normal monsoon revives confidence in demand recovery in rural India.

4. Fully functioning contact-intensive service sectors such as travel and tourism, hotels, schools and colleges post COVID 3.0. Furthermore, all public transport systems like Air, Rail and Bus are now fully operational, supporting a rapid and resilient recovery of economic activities.

5. Remittances (major contributors to rural incomes) are expected to return to pre-Covid levels with the recovery in service sectors.

6. Easing supply chain conditions and cooling commodity prices, providing a break from high inflation. Against this backdrop, market discourse has shifted from worrying about inflation to slowing inflation expectations over the next one or two quarters.

Based on the above themes, the Axis Securities note said: “We recommend the following stocks which are well positioned to benefit from strong festival demand: Maruti; Bajaj Finance; SBI Cards; Trent, Relaxo; V -mart”.

These six stocks are considered long-term wealth creators. Axis Securities’ time horizon for these stocks is 6 to 9 months.

These six stocks are Axis Securities’ top picks during festival season:

Maruti-Suzuki

On the BSE, Maruti Suzuki shares ended at 8,945.70 each per 158.05 or 1.80% Friday. The market capitalization of the company is approximately 2 70,231.76 crores.

In one year, the shares rose by at least 31.5%. Stocks were around 6,801 each on September 9 last year. Its sales climbed 50.52% year-on-year to reach 25,286.3 crores. Operating income amounts to 26,499.8 crores, up 49% YoY for the quarter under review, but down 0.8% QoQ.

For the June 2022 quarter, the company recorded net income of 1012.8 crore up 129.76% from 441 crores in the corresponding quarter of last year.

Axis Securities gave a buy rating with a target price of 9,801 each on stock.

Bajaj Finance

On Friday, NBFC shares closed at 7,183.55 each less 74.45 or 1.03% on BSE. The market capitalization of the company is approximately 4 34,913.12 crore.

Bajaj Finance shares have had a volatile year and its performance was slightly lower by just over 3% compared to the level of September 9 last year. However, stocks have rallied strongly over the past three months, with gains of almost 22%.

Bajaj Finance had a strong quarter in June 2022 (Q1FY23) with net profit up 159% to reach 2,596 crores compared to 1,002 crores in the same quarter last year. Net interest income (NII) increased by 48% to reach 6,638 crore in the quarter under review 4,489 crores in Q1FY22. During Q1FY23, new loans booked jumped 60% to 7.42 million from 4.63 million in Q1FY22.

Axis Securities has set itself a target price of 8,250 each on stock.

SBI cards and payment services

On BSE, SBI Card shares closed at 943.60 each down 1.69% on Friday. The market capitalization of NBFC is approximately 89,011.67 crores.

Although the title has plunged nearly 15% in one year. However, in the last three months of this year, stocks rallied strongly and rose more than 22%.

During Q1FY23, SBI Card reported 105.80% growth in net profit to 626.91 crore compared to 304.61 crores in the same quarter last year. Operating revenue amounted to 3,100 crore in Q1FY23 up 31% yoy and 9% yoy. Interest income reached 1,387 crores in the first quarter of this budget increase of 20% YoY and 10% YoY.

Axis Securities has given a target price of 1,050 each.

Thirty

On BSE, Trent shares closed at 1,379.35 each 1.98% lower. The market capitalization of the company is approximately 49,034.16 crores.

In one year, shares have soared nearly 35%.

In the first quarter of FY23, the company recorded consolidated net income of 114.93 crore against a loss of 138.29 crores in the same period last year. Operating income amounted to 1,803.15 crore – up sharply from 491.99 crore in Q1FY22.

Axis Securities has given a target price of 1,530 each on stock.

Relaxo shoes

On the BSE, shares of Relaxo Footwears closed at 1,012.90 each up slightly on Friday. The market capitalization of the company is approximately 25,213.72 crore.

Over the past three months, stocks have gained nearly 3%.

During Q1FY23, the company recorded a net profit of 38.67 crore against 30.96 crore in Q1FY22. Operating income amounted to 667.15 crores more than 497.13 crores observed in Q1FY22.

Axis Securities has given a target price of 1,120 each on stock.

V-Mart

On BSE, V-Mart shares closed at 2904.30 each per 8.35 or 0.29% on Friday. The market capitalization of the company is approximately 5,741.33 crores.

In Q1FY23, the company recorded a net profit of 20.45 crore against a loss of 28.71 crore in Q1FY22. Operating revenue amounted to 587.88 crores in Q1FY23 versus 177.41 crores in the first quarter of FY22.

Axis Securities has given a target price of 3,350 each on stock.

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