InCred lists 20 'high conviction ideas': HDFC Bank, Maruti among 'add' calls; IndiGo, Tata Steel among 'reduce'
Additions: According to InCred, the recent stock price correction has given an opportunity to upgrade 3 stocks to the ‘high conviction list’ – Cyient DLM, Data Patterns, and Tech Mahindra. It has included Data Patterns (ADD) for the benefits of increasing in-house product development and annuity-based exports.
Meanwhile, Tech Mahindra's (ADD) stock correction provides an opportunity to play on leadership change to drive new business wins and profit margin normalisation to industry peers, it noted. Moreover, Cyient DLM (ADD) is a beneficiary of rising defense spending by the USA and Israel, said the brokerage.
Deletions: However, it has removed cement stocks UltraTech Cement and Dalmia Bharat as they have significantly outperformed the benchmark index. While the brokerage has ‘add’ calls on most of its stock ideas, it has 3 with ‘reduce’ calls - Clean Science & Tech, InterGlobe Aviation (IndiGo), and Tata Steel.
Stocks with ‘add’ calls include Ashok Leyland, BCL Industries, Bharat Electronics, Bharat Forge, Camlin Fine Sciences, Container Corporation of India, Cyient DLM, Data Patterns, Globus Spirits, HDFC Bank, KEI Industries, Mahindra & Mahindra Finance, Maruti Suzuki, Reliance Industries, Spandana Sphoorty Financial, Tech Mahindra, and Thermax. Among the stocks with 'add' calls, the brokerage sees multibagger returns in Globus Spirits with 263 percent potential upside (target ₹2,929), followed by Camlin Fine with 103 percent potential upside (target ₹300).
Meanwhile, it expects over 50 percent upside in BCL Industries, Data Patterns, and M&M Finance. Apart from these, the brokerage sees between 20 percent and 47 percent potential upside in Ashok Leyland, Bharat Electronics, CCI, Cyient DLM, HDFC Bank, Maruti Suzuki,
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