Top 10 stock calls by Angel Broking: ICICI Bank, Bharti Airtel and more

SUMMARY

Here are the top 10 stock calls by Angel Broking

By Ankit Gohel Jul 28, 2020 12:47:01 PM IST (Published)

Colgate-Palmolive (India) | Buy | Target: Rs 1,620 | The brokerage believes that the company should ultimately be able to see sharper market share gain in the toothpaste segment on the back of higher ad-spend and re-launch of Colgate Strong Teeth (decent traction seen in last quarter).

ICICI Bank | Accumulate | Target: Rs 410 | The brokerage house believes that ICICI Bank is clearly better positioned on the liability side. ICICI Bank is trading at a significant discount to historical average valuations and offers favorable risk-reward from current levels given global tailwinds, it said.

HDFC Ltd | Accumulate | Target: Rs 2,075 | HDFC Ltd is able to raise funds at competitive rates owing to strong operating metrics, experienced management, and industry’s best credit rating. HDFC Ltd is trading at a significant discount to historical average valuations and offers favorable risk-reward from current levels given global tailwinds, Angel Broking said.

Larsen & Toubro | Buy | Target: Rs 1,093 | L&T has a strong order backlog of Rs 3 lakh crore. The majority of the order book is from the central government, state government, and PSU, where the risk of cancellation is low. The brokerage has a 'Buy' call with a target price of Rs 1,093 per share.

Bharti Airtel | Buy | Target: Rs 672 | Telecom operators have increased tariffs by 35 percent in Nov’19. There is a possibility of another round of tariff hikes by telecom companies in FY21 given that tariffs are still very low. “If Vodafone Idea goes out of business, Bharti Airtel would benefit significantly from the addition of subscribers,” Angel Broking said.

Britannia Industries | Accumulate | Target: Rs 4,220 | Britannia has an overall distribution reach of 5.5 millionoutlets.It has narrowed the gap with the No. 1 player. The gap with the largest distributed brand is now just 0.8 million outlets which it expects to bridge soon and thereby become the largest player over the medium to longterm, Angel Broking said.

Dr Reddy’s Laboratories | Accumulate | Target: Rs 4,570 | Dr Reddy’s has a very strong product portfolio with 55-65 percent of its revenue coming from chronic which is a high growth segment and will be least impacted due to lockdown globally, the brokerage said.

Escorts | Buy | Target: 1,275 | With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as the expectation of normal monsoon 2020, the brokerage expects the tractor industry to outperform the larger automobile space in FY21E with Escorts a key beneficiary.

Ipca Labs | Accumulate | Target: Rs 1,900 | The company’s 54 percent of revenue comes from domestic generic and API business. Generics and API continue to provide revenue growth for Ipca. The brokerage expects the company to outperform the Indian Pharmaceutical market by 8-10 percent p.a in FY22.

PI Industries | Accumulate | Target: Rs 1,929 | The company is a market leader in fast-growing custom manufacturing space catering to leading agrochemical companies globally. Angel broking has an 'Accumulate' call with a target price of Rs 1,929 per share.