HDFC Bank, SBI Cards, Tata Steel and more: InCred lists 24 high conviction picks for June
Dabur India and Zydus Lifesciences with ‘add’ calls; and PG Electroplast with a ‘reduce’ rating. Meanwhile, deletions include APL Apollo Tubes, Bharat Electronics, Data Patterns, Camlin Fine, and Titan Company.
The brokerage had ‘add’ recommendations on all these stocks as well.Addition to the list:Dabur India (ADD): Beneficiary of the recovery in rural markets and the healthcare segment.Zydus Lifesciences (ADD): Complex generic product launches to be key growth drivers for its US business sales and profitability.PG Electroplast (REDUCE): Dependence on the new air-conditioner and laptop manufacturing business to scale up sales looks stretched.Deletion from the list:APL Apollo Tubes (ADD): Flattening volume growth and weakness in EBITDA/t is an area of concern.Bharat Electronics (ADD): Government policy risk unaccounted at a rich valuation of 46x FY26F EPS i.e +2SD above the 5-year mean.Data Patterns (ADD): A sharp run-up in the stock price has resulted in the stock trading at 45x FY26F EPS, making the risk-reward unfavourable.Camlin Fine (ADD): Challenges to Vanillin scalability are limiting profitability benefits.Titan Company (ADD): High gold price impact on demand and competition intensity impact on the EBITDA margin are the areas of concern.Apart from these, among its high conviction picks, the brokerage sees maximum upside in Globus Spirits of 127 percent. It has an ‘add’ rating on the stock with a target price of ₹1,562.Globus Spirits has experienced an expansion in gross profit margin due to increased selling prices of Indian Made Indian Liquor (IMIL) effective from April 1, 2024, following the new excise duty policy. The company also benefited from the normalization of fuel costs and the successful expansion of
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