Five largecap stocks to bet on post-March quarter results

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The initial quarterly results showed that India Inc is on the track to report robust financial results for the quarter ended March 31. Meanwhile, brokerages are coming up with their stock calls post financial results. Here are the top largecap stocks they have recommended so far considering the present market scenario.

ACC: Analysts retained their bullish view ACC after it posted 74.16% year-on-year (YoY) growth in consolidated net profit at Rs 562.59 crore for the quarter ended March 31. Motilal Oswal retained ‘Buy’ on ACC with a price target of Rs 2,205. “ACC trades at a 35-60% valuation discount to peers Shree Cement, UltraTech and Ramco. We believe such a large discount is excessive as ACC has arrested its market share losses since CY17. Cost is expected to stay in check aided by savings in logistic costs and with planned expansions, the proportion of inefficient assets would decline, improving profitability,” the brokerage said.

HDFC Bank: Emkay Global Financial Services is positive on HDFC Bank with a price target of Rs 1,850, given its cross-cycle best asset-quality, strong franchisee or capital profile, better growth outlook and superior return profile. However, it highlighted that RBI’s suspension of new card acquisition due to continued tech outages remains an overhang on the stock.

Infosys: Geojit Financial Services has a ‘Buy’ call on the IT major with a price target of Rs 1,614. “Strong traction and growth momentum, large deal wins coupled with improved focus on executional abilities improves the medium-term outlook of the business,” the brokerage said.

Nestle India: FMCG major Nestle India reported a 14.62% rise in its net profit to Rs 602.25 crore for the quarter ended in March 2021 driven by an increase in sales volume of its key products. The company, which follows January-December financial year, had posted a profit of Rs 525.43 crore in the same period a year ago. Emkay Global Financial Services retained ‘Buy’ on Nestle with a price target of Rs 16,800 post March quarter earnings. “Recent lockdowns may impact Q2 and CY21 earnings but are likely to be temporary and should not affect our CY22-23 forecasts,” the brokerage added.

Tata Consultancy Services (TCS): Phillip Capital maintained ‘Buy’ on TCS with a price target of Rs 3,700. “TCS reported strong results, inline with expectations. Dollar revenue grew over 4.2% CC QoQ while margins remain stable-inline with estimates. The deal flow at $9.2bn was the biggest positive surprise (up over 35% qoq)-providing a strong foundation for robust growth in FY22.