Diwali picks: 6 stocks to buy as recommended by Anand Rathi

27 Oct , 2021 By : Kanchan Joshi

As part of its Diwali 2021 stock picks, domestic brokerage and research firm Anand Rathi has recommended six stocks that one can look to buy which includes Infosys, Hindalco, Coforge, Indo Count Industries Ltd, Rossari Biotech Ltd and Vardhman Special Steels Ltd.

Anand Rathi's top stock picks for Diwali -

Infosys: As per the brokerage, the company benefits from its strong presence across varied industries and markets. The company has stepped up its hiring program. With a strong start to the financial year, good deal momentum in Q2, a robust pipeline, the company is increasing its annual revenue guidance. The buy rating comes with a target price of Rs2,000.

Hindalco: Explaining its rationale, Anand Rathi said that Hindalco's valuations are still not stretched considering the solid operational performance and ongoing balance sheet deleveraging together with strong opportunities for pursuing growth capex at a comfortable leverage position. It has a target price of Rs578 per share.

Coforge Ltd: “Robust deal pipeline along with strong deal wins momentum and particularly consistency in large deal wins, value creation from SLK Global acquisition and strong FY22 guidance from management," the note stated with giving a price target of Rs6,465 on the stock.

Indo Count Industries: An uptick in the demand for Home Textile is seen owing to various factors like China 1 strategy, US Ban of Xinjiang cotton, strong demand in value added categories such as health and hygiene. Appropriate Product Mix, Government incentives (RoSCTL, RoDTEP) will aid in strengthening margins, the brokerage pointed. It has a target price of Rs334.

Rossari Biotech: In terms of strategy, management continues to focus on leveraging its R&D capability and introducing new business lines within core chemistries. The stock recommendation comes with a price target of Rs1,840 apiece.

Vardhman Special Steels: Expansion of capacity of rolled products, Increase in utilisation levels and strategic partnership with Aichi Steel Corp. (Toyota Group subsidiary) augurs well inlong term for the company, as per Anand Rathi which has Rs350 target price on the stock.