Nifty target price increased to Rs 25,638; HDFC Bank among 19 conviction picks: InCred Equities

economictimes.indiatimes.com:

Nifty to 25,683. InCred also came out with a list of 19 high-conviction stock ideas, including HDFC Bank, M&M Finance.

“Factoring in favourable macroeconomic tailwinds led to an upgrade in our blended Nifty-50 target to 25,683 (from 24,084 earlier). The preference for largecaps remains. We have added defensive stocks to our high-conviction ideas list and removed policy-risk stocks in the defence sector,” said a report by InCred Equities.

The March 2024 quarter results were marginally above expectations. FY25F-26F Bloomberg consensus Nifty-50 PAT CAGR of 12% is expected to be driven by telecom, consumer staple, materials, consumer discretionary and capital goods sectors.
With the VIX now back to near-13 level, the domestic brokerage firm states that the strong macroeconomic tailwinds and their FY25F-26F EPS growth outlook of 12% remain intact, which favours utility, consumer and capital goods sectors.
Domestic economic activity continued to remain strong, despite a few challenges from general/assembly elections and the heatwave. The high frequency data on electricity generation and credit growth was impressive while the Goods and Services Tax or GST collections eased from the March 2024 peak level.

“We stay constructive on markets and look for policy action & priorities in the budget slated end-July 2024,” said Pramod Amthe of InCred Equities.

High conviction picks

Following are the high conviction picks with an ‘add’ rating as listed by InCred equities:

Aditya Birla Sunlife AMC, Ajanta Pharma, Ashok