Birlasoft, ICICI Bank among top Diwali stocks in Edelweiss

Edelweiss top stocks for Diwali –

Birlasoft: The brokerage said enhanced efficiencies due to better deal signing, focus on niche verticals, top client growth and tail cutting are responsible for better profitability.

Brigade Ant: Edelweiss believes that Brigade is the best game on revival in the residential market and will continue to maintain its market share given its asset light model, strong brand and execution track record.

ICICI Bank: In terms of valuation, ICICI is trading at a discount to larger peers like Kotak and HDFC Bank. “The valuation gap should be closed, leading to a 22-25% CAGR growth in the share price over the next two years,” the note said.

HFFC: The broker believes that Home First Finance Company is well-established to capitalize on the high growth yet foraying into the affordable housing market.

Indo Count: With several industry tailwinds such as strong US import demand, ‘China plus one’ strategy, attractive valuations and continued export incentives, Edelweiss continues to prioritize Indocount in the textiles sector.

IndusInd Bank: “The stock is currently trading at a discount to the 4 largest private banks. We believe it has the potential to trade at 2.2xP/ABV, which means 30% in the next 2 years -35% return.”

Infosys: Edelweiss expects Revenue / EBIT / PAT to grow 40% / 41% / 42% from FY21-FY23E. It believes margins will remain resilient due to operating leverage, higher offshoring and higher utilization.

INOX Leisure: ILL is well positioned to meet the strong demand as majority of Indians will be vaccinated. In addition, ILL is expected to aggressively add screens post normalization, which should aid revenue growth.

Max Health: “We believe MHI is the best game in the Indian hospital sector. Its increased bed capacity at a lower cost will not only boost the topline but also generate higher ROCE.”

Mindtree: The NXT acquisition will allow Mindtree to build deep domain expertise and establish them as one of the leading partners to leverage data and analytics.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.