​Diwali Picks: Tata Motors, BSE among 10 stock ideas from Sharekhan

"The company sees ample opportunities in the Middle East region in hydrocarbons and renewables. The capex is large in this region, and hence, all players would get a fair share of the pie. The company expects 19,000-20,000 crore of orders to be awarded in the defence segment in the near to medium term," Sharekhan said.

Given a strong asset quality outlook, RoA would inch up closer to ~ 1% on lower credit cost and improved core PPoP.

"We believe valuations are expected to inch higher as the return ratio improves in the coming quarters on the back of an uptick in loan growth, stable margins, and further lower credit cost. At CMP, the stock trades at 0.7x/0.6x its FY24E/25E BV estimates," the brokerage said.

"Birlasoft expects its digital and data business to experience growth momentum due to its strong leadership in ERP and infrastructure. Further, their renewed focus on key sectors such as BFSI and manufacturing verticals is expected to drive the overall performance of the company," the broking firm said.

"We believe that BSE Ltd is likely to deliver strong earnings growth of ~40% CAGR over the next three years driven by an uptick in volumes for Equity & Index derivatives segments and increasing the transaction charges in derivative segment gradually as the company gains sustainable momentum in overall equity derivatives volume over the medium term," Sharekhan said.

"Its rental portfolio is gradually witnessing rising physical occupancies while focusing on doubling its retail portfolio over the next 4-5 years. The exit rentals for March 2024 and March 2025 are pegged at Rs 5,000 crore and Rs 5,600-5,700 crore," the brokerage said.
DLF’s strong leadership position in Delhi-NCR, a strong residential project pipeline, huge rental portfolio, large land reserves at low carrying costs, and strong housing market tailwinds provide a high-growth opportunity, it added.

"Acquisition of Atraco will result in revenues potentially increasing to Rs 4,000 crore by FY2025. Around 95% of its products are exported to US markets. The acquisition is expected to be earnings accretive by Rs 5-6 per share by FY2025," Sharekhan said.

"GKEL is seeing a strong upward trend in export demand starting Q3FY2024. Atraco has strong order bookings till April 2024. Atraco is likely to do revenues in line with CY2024 with capacity utilisation marginally less than 90%," it added.

"We are bullish on HAL’s growth trajectory as it is one of the key beneficiaries of structural reforms in the defence sector. The company’s impending deal with GE and potential export tie-up with countries like Argentina can provide strong long-term growth opportunities," the brokerage firm said.

Once execution of large orders like LCA (Mk1A) picks up pace, the company could post double-digit revenue growth from FY2025E onwards, and it should stabilize at 14-15% sales growth from FY2026 onwards, it said.

"We believe that IndusInd Bank has come out of a tough cycle. Focus on granular growth and building a strong internal risk framework is the right strategy. Near-term business trends look comfortable for the bank and the franchise is looking towards a more predictable performance, brokerage firm Sharekhan said.

"Following the Europe plus 1 global theme, the casting business has been gradually shifting from Europe to low-cost manufacturing countries like India, and BFL has been targeting to benefit from Europe plus 1 theme in the castings segment. The acquisition of casting capacities has now allowed BFL to play in the global casting segment. While BFL has built up strong capacities in-house, it has plugged the gap via suitable inorganic growth opportunities, given it now complements its offerings in forging with castings after the acquisition of casting capacities," Sharekhan said.

With new products and a shift in the demand towards the SUV segment, TML has strongly gained market share in the domestic PV space. TML’s market share in the domestic PV market has improved from 5% in FY20 to 14 % in FY23. Further, acquisition of Ford’s plant would help it to increase its production in a short span of time, given TML is running its plant at its peak capacities," brokerage firm Sharekhan said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)