From HCL Tech to ICICI Bank, Kotak Securities' top stock picks for July

SUMMARY

The benchmark indices have more or less been range-bound as they continue to remain directionless in the absence of any significant developments in terms of macro-economic factors. From now till the end of FY22, Kotak Securities expects modest returns from the Indian market considering strong economic recovery and a gradual increase in global and domestic bond yields. It will be a good 'buy on dips' market, it added. Here's a list of stocks the brokerage prefers for the month of July:

By Pranati Deva Jul 5, 2021 1:33:48 PM IST (Published)

HCL Tech | Target: Rs 1,080 | Upside: 9.8% - The brokerage has an 'add' rating on the stock. It believes that the healthy pipeline provides comfort for the stock on the growth front and expects earnings to grow 6.6 percent in FY22E and 11 percent in FY23E.

ICICI Bank | Target: Rs 710 | Upside: 12.5% - The brokerage has a 'buy' call on the stock. As per the brokerage, the lender has been ticking all the right boxes and delivering solid growth in a challenging environment. It said that the lender is likely to recover from the COVID-19 episode faster than peers.

LIC Housing Finance | Target: Rs 600 | Upside: 27.7% - The brokerage has an 'add' call on the stock. It expects the firm to deliver 15 percent EPC CAGR during FY22-24E and an RoE of 13-14 percent in this time.

NCC | Target: Rs 105 | Upside: 20.7% - The brokerage has a 'buy' call on the stock. It added that a robust order backlog gives strong revenue growth visibility for the next 2-3 years. It is optimistic on future order inflows based on a positive outlook for infra capex.

SAIL | Target Rs 170 | Upside 29.8% - The brokerage has a 'buy' call on the stock. It noted that SAIL is well-positioned to benefit from a strong steel up-cycle, adding that expansion projects will drive volume growth and operating leverage. The balance sheet has also significantly improved and deleveraging should continue, stated the brokerage.

Sun Pharma | Target Rs 740 | Upside 10% - The brokerage has an 'add' call on the stock and raised FY22-23E estimates by 4-5 percent factoring in lower marketing spend. The firm reported strong domestic business growth of 13 percent YoY, it said, adding that Ilumya ramp-up remains on track. Continued execution in specialty provides the potential for further re-rerating and will drive strong earnings growth, noted the brokerage.