According to certain brokerages, a few large-cap equities that haven’t been able to outperform the Nifty50 in 2023 can provide substantial profits in 2024. According to certain brokerages, a number of stocks, including Infosys Ltd., State Bank of India (SBI), HDFC Bank Ltd., Divis Laboratories Ltd., JSW Steel Ltd., Life Insurance Corporation of India, and Reliance Industries Ltd. (RIL), appear to be poised for a comeback in the upcoming year.
Infosys provided a meagre 1.25 percent return in 2023 against an increase in the Sensex of 18.15 percent; in the same period, SBI earned 4.69 percent, HDFC Bank 5.10 percent, RIL 9.2 percent, JSW Steel 12.87 percent, Divis Laboratories 16.20 percent, and LIC 17 percent.
According to Tanvi Kanchan, Head of Corporate Strategy at Anand Rathi Shares & Stock Brokers, there is a good argument for three equities that saw little increase in 2023 but may see a large increase by 2024.
“The stock I would recommend most is SBI because it has had a flat stock performance even after an incredibly strong year in terms of earnings. Currently trading below its 2 price-to-book value, SBI presents an attractive investment opportunity as it is positioned as a proxy for India’s growth narrative. My cautious goal of Rs. 800 for SBI in 2024 represents a roughly 25% increase from current levels. Divs Laboratories is my second choice; it underperformed the Nifty and Nifty Pharma indexes. I predict a goal of Rs 5,000 for Divis Labs because I expect the pharmaceutical sector to continue to be strong due to good values and relatively low ownership, as well as an optimistic outlook on overcoming margin problems and US pricing pressure,” Kanchan stated.
Kanchan’s stock choice is JSW Steel as well. The prospect of rate reductions in the US and a possible economic rebound in China offer a positive environment for the metals market to rebound. “I have set a target of Rs 1,100 for JSW Steel in light of this. Together, these three equities show my bullish investing portfolio for 2024,” Kanchan stated.
Choice Broking’s Deven Mehta, an equity research analyst, believes that rate-sensitive industries have a bright future because rate cuts are expected from the US Federal Reserve and the Reserve Bank of India.
“The banking and IT industries are expected to do well. Nifty member Wipro has demonstrated strong technicals, indicating a possible ascent to the Rs 560 level in 2024 with a breach over Rs 445. Following a muted 2023 as a result of the merger of HDFC and HDFC Bank, HDFC Bank is anticipated to recover. There might be a shift at HDFC Bank in the direction of Rs 2,000, according to Mehta.
Infosys is favored by Sunil Nyati, Managing Director of Swastika Investmart Ltd. He declared that he was concentrating on companies with sound growth traits, the capacity to support cost-cutting initiatives as well as discretionary spending, and the ability to trade at fair prices. According to Nyati, Infosys fits the bill.
He predicts that Infosys’ growth would return to normal in FY25, reaching 9.1% from anticipated 2.1% in FY24. Nyati enjoys SBI as well. He claimed that the bank is expanding its loan book much more prudently, which provides more security.
“The continued success of the liability franchise bodes favorably for credit costs. We believe that the franchise’s qualities are undervalued in its valuation. He proposed a fair value of Rs 725 for the stock and stated, “We should see the bank trading at higher levels as the quality of earnings would continue to surprise positively and could it be longer than expected.”
According to Nyati, LIC shares have increased recently as a result of the surge in PSU finance equities and the excitement surrounding its new, subpar product, “Jeevan Utsav.” “Its IRRs are marginally lower than peers; volume growth and profitability can be enhanced with a compelling marketing proposition. “Valuations are still low, giving ample leeway,” he stated, recommending a reasonable price of Rs 1,040 for the shares.
Rupak De, Senior Technical Analyst at LKP Securities, has a positive outlook on Reliance Industries (RIL) based on technical charts. As to his statement, the stock has shown a possible reversal from a downtrend on the monthly chart by signaling a ’rounding bottom’ breakout. “It has also continued to trade above an important long-term moving average,” he added, recommending a target price of Rs 3,200 for the company. According to the technical analyst, one might purchase the stock between Rs 2,580-2,610, with a stop loss set at Rs 2,340.
