Raksha Bandhan 2022: Gift Your Sisters with Capital Market Stocks for Outstanding Returns – Full List


Stocks to buy: Raksha Bandhan 2022 will be celebrated on August 11 this year. The festival is observed every year to celebrate the bond between siblings. On this day, the sisters tie Rakhi to their brother’s wrists and the brothers, in return, promise to protect their sisters and give gifts. For those looking to celebrate the occasion by giving special gifts to their sisters, we bring you the list of actions that can make sisters financially strong and achieve financial independence.

These stocks are fundamentally sound and come from different sectors. These stocks can generate a nice return of around 25% in the medium and long term. The recommended stocks are those of the national brokerage firm YES Securities.

1. Bharti Airtel – Buy – Target: 901, up: 28%, period: 12 months

Bharti Airtel is a global communications solutions provider with over 490 million customers in 17 countries in South Asia and Africa. We see three growth levers for Bharti: 1) improving the 4G mix, 2) market share gains thanks to VIL, and 3) continued price increases.

We believe that despite the 5G investment payments, Bharti is seeing a shift in its ability to generate FCF (free cash flow) which could result in healthy deleveraging. Industry consolidation has led to several rounds of price hikes, translating into increased ARPU for Bharti.

Airtel has a long-standing relationship for connectivity services with Ericsson and Nokia, while the partnership with Samsung will begin this year. Choosing multiple partners will enable Airtel to deploy 5G services covering ultra-fast speeds, low latency and big data processing capabilities.

2. Axis Bank – Buy – Target: 918, up: 26%, time frame: 12 months

Axis Bank is gearing its book towards high-yield segments. Its market share in net added credit cards improved significantly after a lean CY20. Axis Bank’s push into high-yield segments began to materialize in FY22.

The bank reduced its exposure to the low-yielding offshore portfolio and as such did not pursue low-yielding corporate loans (on the domestic side as well) as the pricing did not make sense. However, management expects the price environment to improve in the short to medium term.

The bank has 69% of its look book in variable rate book form, of which 39% is linked to the Repo rate, 23% is linked to the MCLR rate, 2% is linked to the EBLR rate, 2% is linked to the base rate and 3% are in foreign currency. Fixed rate loans represent 31% of the total loan portfolio.

3. The Ramco Cements – Buy – Target: Rs 931 Rise: 23% Period: 12 months

The management of The Ramco Cements (TRCL) expects volume growth of approximately 12-15% for this fiscal year with increasing utilization of newly added capacity. With the newly added capacities in the East, TRCL is diversifying its geographic existence, increasing its share of blended cement (74% in Q1FY23).

We believe TRCL will generate healthy operating cash flow of INR 26.8 billion and fund its ongoing investments (Rs 8.5 billion) and plans to deleverage its balance sheet over FY23-24E. The company is increasing its share of premium products which reached 24% in Q1FY23.

TRCL owns wind farms whose electricity is partly used for captive consumption and partly sold to the grid. Management indicated that steps are being taken to use 100% of wind energy for captive purposes to offset the inflated overall cost of electricity and increase the share of green energy by around 10% .

4. PSP Projects – Purchase – Target: Rs 725, increase: 18%, period: 12 months

PSP Projects is an integrated EPC company across the construction value chain, from design, construction, mechanical, electrical, plumbing (MEP), interior, O&M services. It is geographically diverse with a presence in six states viz. Gujarat, Rajasthan, UP, Maharashtra and New Delhi.

PSP Projects has 3 verticals – 1. EPC Projects (54% of total backlog), 2. Turnkey (38% of total backlog), 3. Civil Construction (8% of total backlog). It had a total order inflow of Rs 1802 crore in FY22 whereas from FY23 till now it has a total order inflow of Rs 1097 crore.

The company has guided a steady 20-25% growth in order backlog every year. With a strong backlog, fast project execution and a conservative management pedigree, we expect PSP Projects to deliver strong revenue and net income growth over the medium term.

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