Indian stock market indexes hit new highs on Tuesday, with the benchmark Sensex index crossing the 75,000 level for the first time and the Nifty 50 index rising to an all-time high of 22,700.
Markets started FY25 on a strong note, led by healthy corporate earnings, strong domestic economic growth, and optimism about positive global signs. Analysts believe sentiment remains positive on hopes for a positive outcome from the general election and subsequent policy initiatives.
The benchmark Nifty 50 is up nearly 2% so far in April.
Read here: Sensex crossed 75,000 mark for the first time. Nifty 50 crosses his all-time high of 22,700
Yes Securities recommends four stocks to buy in April, believing they have the potential to deliver decent returns of about 20% to 27% over 12 months.
The firm's top picks for April include Hindalco Industries, HCL Technologies, Pricol and Federal Bank.
Hindalco Industries | Purchase | TP: INR725
A firm focus on aluminum and copper downstream operations, a focus on cost optimization projects to ensure global competitiveness, a sustained strong earnings outlook taking into account future capital investments, and a clear outlook for global aluminum prices. With the stock bottoming out, Yes Securities is bullish on Hindalco Industries.
Novelis is a significant contributor to Hidalco's revenue. Novelis' profitability, which accounts for more than 50% of its EBITDA revenue share, is largely insulated from LME aluminum price risk. The brokerage said Hindalco is focused on expanding its downstream business in India and Novelis, a high-margin market.
The stock's rating is “buy” and the target price is INR$725 per share over a 12-month period.
Also read: Stocks to watch: 5paisa's Ruchit Jain recommends these two stocks to buy now
HCL Technology | Purchase | TP: INR1,854
HCL Technologies' business structure is relatively resilient to adverse macro environments. Yes Securities said that while the vertical structure also has an even distribution of individual strengths, its service lines (cloud + IMS) are more skewed and related to current corporate spending.
It added that the company's robust capabilities and scale in the ER&D space, as well as its continued investment to drive digital engineering revenue with strong outsourcing opportunities, should continue to deliver sustainable and predictable growth. .
Yes Securities recommends the target price of HCL Technologies stock as “buy”. INR1,854 shares per share.
Pricol | Purchase | TP: INR508
Yes Securities believes Precor will grow faster than the industry on the back of premiumization trends. Clusters transition from mechanical to digital, basic demand for two-wheelers recovers after a lull, ACFMS (Actuation Control and Fluid Management Systems) sector faces export tailwinds and introduces new products.
Even excluding the impact of new products and acquisitions, the brokerage expects margin expansion, a net cash balance sheet, and very strong growth to drive profitability and support a possible rerating.
There is a “buy” call on the stock price, and the target price is INR508 shares per share.
Also read: Day trading stocks to buy: Anand Rati's experts recommend 3 stocks to buy today
Federal Bank | Purchase | TP: INR190
The Bundesbank expects greater visibility into the diversification of its asset profile outside its core regions, sustained market share growth in both assets and liabilities, traction for new retail products with the right seasoning, and other non-interest income. The brokerage firm said that diversification of the brokerage's comparable business areas by building sources and sustaining earnings growth will trigger a rerating of the stock price.
Federal Bank has shown strong performance with 21% year-on-year growth and 25.3% PAT growth. Yes Securities added that the performance is expected to continue for some time and could lead to a re-rating of the stock.
The target price for Federal Bank shares is recommended as “buy.” INR190 yen per share.
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Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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