10 Sep , 2021 By : Kanchan Joshi
While the Nifty witnessed a strong rally in August the midcap and small cap space witnessed significant volatility during the month. For the month of September 2021, domestic brokerage and research firm Angel Broking has recommended top stock picks from different sectors including auto, banking and IT companies like Ashok Leyland, HDFC Bank, Federal Bank, L&T Infotech.
Under banks, Federal Bank (target price of Rs110), HDFC Bank (TP Rs1,859) Shriram City Union (TP Rs2,600), AU Small Finance (TP Rs1,520). For Federal Bank, the brokerage said that the overall asset quality held up well in Q1FY22 despite the second Covid wave and it expects asset quality to improve from Q2FY22 given continued opening up of the economy.
For autos, its top picks include Ashok Leyland with a target price of Rs158, Sona BLW (TP Rs609) GNA Axles (TP Rs815) Suprajit Engg (TP Rs390). For Sonal BLW, the brokerage believes that given the traction in the Battery Electric Vehicles (BEV)/Hybrid Vehicle space, Sona Comstar will continue to command higher multiple and gain market share across its products especially for products related to EV/BEV.
In IT, L&T Infotech is its pick for the month with the target price of Rs5,950 per share. The brokerage expects the IT company to post revenue/EBITDA/PAT growth of 18.6%/22.9%/22.4?tween FY20-FY23 given a strong deal pipeline and increased demand for digital solutions.
Other recommendations include Carborundum Universal (TP Rs932), Crompton Greaves Consumer (TP Rs540), Stove Kraft (TP Rs1,175), Dalmia Bharat (TP Rs2650), Safari Ind (TP Rs979) and Bajaj Electrical (TP Rs1,450). Angel Broking expects Bajaj Electrical's healthy profitability on back of strong brand, wide distribution network & strengthen product portfolio.
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