Macquarie suggests these 10 stocks. Here is the list

SUMMARY

As the situation remains highly fluid in the Indian stock market amid the three-week lockdown, global brokerage Macquarie has came up with its Bottom-Up Top-10 Buy Ideas.

By Ankit Gohel Apr 3, 2020 8:37:12 PM IST (Updated)

Macquarie expects loss due to defaults to be low for the bank.

Macquarie said that its Rs 830 target price is set at 17x FY22 EPS with a ~30% upside.

“Even after factoring in loan growth / credit costs of 8.5% / 2.7% for FY21E in our bear case scenario (post COVID) the stock offers upside of ~50% today,” Macquarie said.

The brokerage believes that the GSK merger provides a strong platform to grow foods portfolio.

In current volatile global macro environment, the brokerage said HCL has a low exposure to BFSI (21% of revenues) and a diversified business mix with software: services mix of 35:65, the brokerage said.

The brokerage believes that EM volatility and any further material headwinds in the South Africa tender and Middle East businesses pose a downside risk.

Even without factoring in contribution from big-ticket US launches, Macquarie expects the company to report double digit earnings growth over FY21/22E.

While near-term volume growth outlook is muted, as demand recovers in 2HFY21, Ultratech is well positioned to leverage on it with current utilization (FY20e) at 74% and pan India presence, the brokerage said.

Macquarie believes that the fears on gas marketing are overblown.

The brokerage sees a short sharp volume recovery post lockdown.