Just In: 2022's Top 10 Picks for Stock Investors
Investing is a way to put money aside while you are busy with life and have that money work for you so that you can reap the full aids of your labour in the future. Investing is a means to an end result that is more satisfying. Today, we have a variety of platforms through which we can invest our money for a brighter future. If you are an investor, you have probably heard of Stock Markets. The term "stock" refers to the general term used to describe a company's ownership. A broker can help you buy and sell stocks on the exchanges. Owning stock in a company gives you the right to vote in shareholder meetings and receive dividends when and if they are declared. If you own the majority of a company's stock, your voting power increases. In short, by selecting the company's board of directors, you can indirectly control it. Witnessing the best in mind as Indian equity markets had a stellar run this year with Nifty up around 22% and going by the history of three decades, the ongoing bull market may encompass for the next few years with multifold gains. Nifty Midcap 100 and Nifty Smallcap 100 sharply outdid with gains of around 43% and 53% respectively in 2021 and indian equity markets are likely to extend gains in 2022 as well. Noticing the history of three decades lets talk about the top 10 stocks to buy in 2022 for gains.
10 stocks to consider in 2022 for gains-:
Aditya Birla Fashion & Retail
Target price – Rs 360 per share
Aditya Birla Fashion and Retail Limited, formerly named as Pantaloons, is a fashion and lifestyle conglomerate. The Company is entangled in the retail sale of clothing, footwear, and leather articles and the provision of branded fashion apparel and accessories. It operates in two divisions: Madura Fashion & Lifestyle and Pantaloons. ABFRL has strengthened its balance sheet in terms of stock market performance through recent equity infusions, with net debt falling sharply from Rs 2500 crore to Rs 870 crore. In addition, the stock has experienced a faster retracement of the entire 52-month corrective decline in just 18 months, indicating a strong price structure. As a result, the share price is expected to reach Rs 360 in the coming months as it is 161.8% external retracement of the entire previous major decline in 2020. The upside potential for the stock, according to ICICI Direct Research, is 31%.
Target price – Rs 900 per share
ICICI Bank is a leading private sector bank in India, with a target score of Rs890 per share. The bank was founded in 1994 as a wholly-owned subsidiary of ICICI Limited, an Indian financial institution. At September 30, 2020, the bank's consolidated total assets stood at 14.76 trillion. ICICI Bank currently operates a network of 5,288 branches and 13,875 ATMs throughout India. Overall, the lender reported strong stock market performance in Q2 FY22, with PAT growth of 30% YoY, driven by healthy loan growth of 17%, margin expansion, and lower NPA provisioning. NII increased by 24.8 percent, while NIM improved by 11 basis points due to lower reversals and strong growth in the high-margin unsecured portfolio. Choice Broking assigned the stock a "BUY" rating with a target price of Rs 900, valuing the standalone banking business at Rs 710 (at a P/ABV of 2.5x FY24E) and subsidiaries at Rs 190.The stock has a 22.3 percent upside potential.
Target price – Rs 1080 per share
2021 saw a strong recovery in liquor stocks, which led to new highs and a long-term chart turnaround. United Spirits Limited (USL) is an Indian alcoholic beverage company and the world's second-largest spirits company by volume. According to the share's listing, the share's target price is Rs 1080. At the UB Tower, it is a Diageo subsidiary with headquarters in Bangalore, Karnataka. USL's products are available in more than 37 countries. The price of United Spirits has resolved out of its six-year consolidation phase, indicating a structural turnaround and a new bull cycle ahead. In the short term, the stock price is likely to rise above Rs 1,000. ICICI Direct has set a target price of Rs 1080, with a 22% upside potential.
HDFC Life Insurance Company Ltd
Target price – Rs 833 per share
HDFC Life, founded in 2000, is a leading provider of long-term life insurance solutions in India, offering various individual and group insurance solutions to meet a variety of customer needs such as Protection, Pension, Savings, Investment, Annuity, and Health. The company reported encouraging numbers in Q2 FY22, with new business premium coming in at Rs 6,596 crore, up 12.3 percent YoY, while maintaining a target price of Rs 833 per share. The total premium collection increased 14.2 percent year on year. The company's performance metrics are likely to improve due to sector tailwinds and the Exide Life transaction. Choice Broking assigns a P/EV multiple of 4.4x (based on FY23 EV) to HDFC LIFE, resulting in a target price of Rs 833 and a 30.3 percent upside
Target price – Rs 2750 per share
ABB is a world leader in power and automation technologies that help utility and industrial customers improve performance while reducing environmental impact. Power Products, Power Systems, Discrete Automation and Motion, Low Voltage Products, and Process Automation are all divisions of the ABB Group. Considering the achievements mentioned above, ABB has a tight hold in the bull market and a target price of Rs 2750 per share. ABB appears to be on the upswing, having already broken out above a decade-long consolidation and continuing to trend higher while maintaining a higher high-low ratio. The stock has experienced a faster retracement of the previous falling segment, with the nine-quarter decline being completely retraced in just four quarters.ABB's stock price may rise to Rs 2750. According to ICICI Direct Research, the stock has a 25% upside potential.
Hindustan Unilever Ltd. (HUL)
Target price – Rs 2821 per share
Hindustan Unilever Limited (HUL), with a target price of Rs 2821 per share in the share list, is a consumer goods company headquartered in Mumbai, India. It is a subsidiary of Unilever, a British company. Its products include foods, beverages, cleaning agents, personal care products, water purifiers, and other fast-moving consumer goods. In Q2 FY22, with 4% YoY volume and 7% price growth, the company reported an 11.4% increase (YoY) in the consolidated topline. With consumption recovery in urban markets at a good pace, overall sentiment is cautiously optimistic about the near-term demand recovery. Although HUL's share price has fallen by around 16.2 percent in the last three months, choice Broking has assigned the stock a "BUY" rating, with a target price of Rs 2,821 per share and a 22.6 percent upside potential.
Target price – Rs 1485 per share
The IT sector has been driving the current bull run, with HCL Technology in a steady secular uptrend since its multi-year breakout in 2020. Because of improved TCV, broad-based nature of growth across services, improved client metrics, and strengthening of management capabilities in Australia, Canada, France, Germany, and elsewhere, the company is well-positioned to deliver strong growth in IT services and ER&D. ICICI Direct Research is still bullish on the stock, with a marked price of Rs 1485. The stock has a 17 percent upside potential.
Target price – Rs 2150 per share
With a target price of Rs 1485 per share in the share's list, Infosys is an Indian multinational information technology corporation that provides business consulting, information technology, and outsourcing services. The company was founded in Pune and is headquartered in Bangalore. The IT sector reported a 6.1 percent sequential increase in consolidated total revenue in the bull market. Digital revenue increased by 42.4 percent year on year and accounted for approximately 56.1 percent of total revenue. Infosys is presently trading at a TTM P/E multiple of 37.6x. It trades at a P/E multiple of 30.5x based on FY23E earnings. The choice brokerage firm has set a target price of Rs 2,150 per share, 15.2 percent higher than the recommended price, with a 15.2 percent upside potential, based on the company's strong outlook and growth leadership in the sector.
Schaeffler India Ltd
Target price – Rs 10,380 per share
Schaeffler India Limited, previously FAG Bearings India Ltd, is a major ball and rolling bearing manufacturer in India, serving the automotive and other core industrial segments. With a price of Rs 9,117 per share, The company reported a 20.7 percent sequential increase in total operating income to Rs 1,487.6 crore during Q3 CY2021. The target price of each share is estimated to grow to 10,380 in 2022. EBITDA margin increased by 99 basis points year on year, resulting in a 27.7 percent increase in EBITDA. PAT was reported to have increased to Rs 170.8 crore. In the future, the company will benefit from the automotive sector's revival and amplified transfers to its parent company and other markets. Furthermore, government policies promoting indigenization will act as a tailwind for the sector. According to Choice Broking, the stock's target price is Rs 10,380, with a 20.5 percent upside potential.
Target price – Rs 956 per share
Bharti Airtel Limited, or Airtel, is an Indian international telecommunications services company headquartered in New Delhi, India. It is present in 18 countries in South Asia and Africa, as well as the Channel Islands. The target price for each share is Rs 956, and the company reported a solid set of financial results during Q2 FY22, owing to higher ARPU and continuous growth in the 4G subscriber base. Airtel Business, which provides a variety of digital solutions to businesses, could be the company's next growth engine. Airtel will be a long-term investment. Choice Equity Broking has assigned the stock a "BUY" rating, with a board price of Rs 956 per share and an upside potential of 41.5% .
Not to Forget the History
The bull market that was initiated in March 2020 has now seen a gain of more than 114 percent in the S&P 500 after only 21 months. This means that it has already outdid the rally from 2002 to 2007, which continued nearly four times as long. After a year like 2021, when the S&P 500 increased by more than 27%, it may be tempting to assume the trend will simply continue in 2022. However, forecasting the stock market is always a difficult task, and 2022 is no exception.