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5 stocks to buy now that could make you rich

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5 stocks to buy now that could make you rich: Indian equity markets had a stellar run this year with Nifty up around 22%. Nifty Midcap 100 and Nifty Smallcap 100 sharply outperformed with gains of around 43% and 53% respectively. Indian equity markets are likely to extend gains in 2022 as well on account of continuation of economic recovery and strong earnings growth.

5 stocks to buy in 2022 for gains

  1. Bharti Airtel (Target price – Rs 956 per share)

On the back of higher ARPU and continuous growth in the 4G subscriber base, the company reported a robust set of financial performance during Q2 FY22. Consolidated EBITDA increased by 6.3% QoQ while reported PAT stood at Rs 1,134 crore in Q2. Airtel Business vertical, which offers a gamut of digital solutions to the enterprises, could be the next growth engine for the company. Investment in Airtel will be a long term play. Choice Equity Broking assigned a “BUY” rating on the stock with a target price of Rs 956 per share and upside potential of 41.5%.

2. ICICI Bank (Target price – Rs 900 per share)

The lender reported strong performance in Q2 FY22 with PAT growth of 30% YoY driven by healthy loan growth of 17%, margin expansion and lower NPA provisioning. NII grew by 24.8% as NIM improved by 11bps owing to lower reversals, high growth in high-margin unsecured portfolio. Choice Broking assigned “BUY” rating to stock with target price of Rs 900 valuing standalone banking business at Rs 710 (at P/ABV of 2.5x FY24E), and subsidiaries valuation of Rs 190. The upside potential for the stock is 22.3%.

3. HDFC Life Insurance Company Ltd (Target price – Rs 833 per share)

The company reported encouraging numbers in Q2 FY22, with new business premium coming in at Rs 6,596 crore, up 12.3% YoY. Total premium collection was up 14.2% YoY. The company is likely to improve its performance metrics on the back of tailwinds in the sector and the Exide Life deal. Choice Broking values HDFC LIFE at P/EV multiple of 4.4x (based on FY23 EV) to arrive at a target price of Rs 833 and upside potential of 30.3%.

4. Hindustan Unilever Ltd. (HUL) (Target price – Rs 2821 per share)

On the back of 4% YoY volume growth and 7% pricing growth, the company reported an 11.4% growth (YoY) in the consolidated top-line in Q2 FY22. Consolidated EBITDA increased by 10.3% while reported PAT increased by 10.5%. With recovery in consumption continuing at a good pace in the urban markets, the overall sentiment is cautiously optimistic regarding the overall demand recovery in the near term. Despite HUL’s share price correcting around 16.2% in the last three months. Choice Broking assigned a “BUY” rating on the stock with a target price of Rs 2,821 per share and upside potential of 22.6%.

5. Infosys (Target price – Rs 2150 per share)

In Q2 FY22, the company reported a 6.1% sequential growth in consolidated total revenue. Digital revenues increased by 42.4% YoY and formed around 56.1% of the total revenue. At a CMP of Rs 1,866, Infosys is currently trading at a TTM P/E multiple of 37.6x. Based on FY23E earnings, it is trading at a P/E multiple of 30.5x. Considering the robust outlook and company’s growth leadership in the sector, Choice brokerage firm has arrived at a target price of Rs 2,150 per share, 15.2% higher than the recommended price, with an upside potential of 15.2%.