Five analyst stock picks this week
L&T Infotech: This IT company has got an upbeat view from analysts post results, with ICICI Securities assigning it an 18%+ upside on a target price of Rs. 5065. Analyst Devang Bhatt writes, "LTI's ability to win large deals, presence in niche verticals, effectively mine clients, adding Fortune 500 clients, and digital prowess are key drivers. We expect LTI to register 18% CAGR in FY21-23E."
Aegis Logistics: Edelweiss is bullish on this shipping logistics company following the announcement of its joint venture, with an upside of 27.9% on a target price of Rs. 410. "Entry of a credible international partner improves growth visibility as the JV targets a capex plan of INR2,500-4,500cr over five years starting FY23," analyst Himanshu Yadav writes. "We remain positive on AGIS from a long-term view. However, the stock may see short-term weakness in the coming quarters which provides a good entry point, in our view," he notes.
Somany Ceramics: HDFC Securities has initiated coverage on this tiles company with an aggressive buy call. They see a 39.5% upside and a target price of Rs. 940. Analysts Rajesh Ravi and Saurabh Dugar note, "We like Somany for its increased focus on retail sales through a robust distribution and showroom network across India and expanding share of premium tiles sales." They estimate, "We believe these would help its consolidated revenue to grow at a 16% CAGR, supported by capacity expansion and faster growth in the bathware segment."
Infosys: Motilal Oswal continues to be bullish on the Indian granddaddy of IT, Infosys, with an upside of 13.8% on a target price of Rs. 1770. The environment is strong, MOswal analysts Mukul Garg and Anmol Garg say. "The management increased its FY22 USD revenue growth guidance to 14- 16% CC YoY from 12-14%. It characterized the current demand environment to be one of the strongest in a while." While rising attrition is a concern, they write, "We continue to view Infosys as a key beneficiary of a recovery in IT spends in FY22."
Bandhan Bank: Covid outbreaks are still a concern for this private sector bank, Axis Direct analysts admit, but they still see opportunity with an upside of 14.8% on a target price of Rs 355. Analyst Dnyanada Vaidya writes, "We expect collection efficiency to further improve as COVID 2.0 weakens and business activities pick up. The announcement of the Assam Govt. on supporting stress for the MFI borrowers bodes well for the bank, however, the impact and the progress on the same would need to be monitored." But, he points out, "COVID 3.0 continues to pose risk in the normalization of Bandhan’s business#BANDHANBNK #INFY #SOMANYCERA #AEGISCHEM #NIFTY50