Stocks for 2021: Buy these 9 stocks this new year for up to 31% upside potential

Friday ushered in the new year 2021. After the turbulent journey the stock markets took in 2020, stocks are now expensive as Dalal Street hit new all-time highs. National research and brokerage firm Axis Securities believes the new year will see growth revive. In a recent note, Axis Securities said that key issues for 2021 will be dominated by digital gaming, healthcare and telecommunications, while small and mid-cap stocks are increasingly advancing. With these trends in mind, the brokerage has listed nine stocks that it believes could grow this year.

Colgate Palmolive

Target price: Rs 1,745

The company has a strong market share of more than 50% in the Indian toothpaste market. Colgate Palmolive runs an oral care segment and a personal care segment. The firm has said that it will not compromise on volume growth and will still maintain a competitive position in the market through a judicious balance between prices and volumes, according to Axis Securities. “Colgate took advantage of Natural’s tailwind momentum and increased the reach of its natural product portfolio by 2x outlets. Household penetration of the natural products portfolio has increased 70 basis points to date, ”the brokerage firm said. The firm’s shares closed at Rs 1,577 a share on Friday, translating into a potential upside of 11%.

Infosys

Target price: Rs 1,404

India’s second largest IT services company has a strong presence in all geographies. Infosys management has revised its upward guidance to 2% -3% from 0% -2% previously for revenue growth in CC terms for the current fiscal year. Settlement earnings remain strong for Infosys and therefore they are negotiating their settlement portfolio. The IT leader recently won a $ 3.2 million contract from Daimler that will see the latter transform its IT operating model and infrastructure landscape into workplace services, service desk, data center, networks and SAP Basis together with Infosys. Infosys is currently trading at Rs 1,260, resulting in a 12% increase to the target price.

Bharti airtel

Target Price – Rs 676

The telecoms major has seen a rebound in connections recently and shares have even soared 29% in recent months after a long period of decline. “Airtel has launched several products for businesses as it is trying to take advantage of the growth of ‘Work from home’. Its key launches include Airtel Blue Jeans, Airtel Secure, Airtel Cloud and Airtel IQ for B2B clients, ”the report says. The telecommunications firm has continued to diversify its offerings and, becoming a solutions provider, continues with its offering in cloud, security, data center and CPaaS solutions. Bharti Airtel shares closed at 515 rupees apiece on Friday. The potential upside of the target price is 31%.

Relaxo footwear

Target Price – Rs 925

The company’s products include rubber / EVA slippers, canvas shoes, athletic shoes, sandals, school shoes and leather footwear, Axis Securities said. “Relaxo has maintained healthy operating cash flows, asset turnover (~ 3x) and EBITDA margins throughout the years, making it a capital efficient business,” they added. Relaxo Footwear’s growth will be driven by higher capital spending. “Despite the slowdown, the company is moving forward with its capital investment plan of adding additional capacity of one lakh pairs per day at its Bhiwadi plant with an estimated capital investment of Rs 90 crore due to strong demand for the brands Flite PU and Sparx “. The shares are trading at Rs 800 per share, which translates to a 16% increase.

Amber companies

Target Price – Rs 2,800

Amber has a strong market share in the air conditioner market. The company meets 49% of the customer’s requirements for outdoor units, 78% for indoor units, and 60% for window air conditioning. The firm remains a key game on the PLI issue that many believe will provide the Indian industrial sector with the necessary boost. “Amber is well positioned to rapidly expand its operations and seize the opportunity under any PLI scheme announced by the government, as a large proportion of CA and CA components are currently being imported,” Axis Securities said. The brokerage firm sees a potential upside of 18%.

Ujjivan Small Financial Bank

Target Price – Rs 47

The SFB transitioned from NBFC in 2017 and now serves individuals and businesses in low- and middle-income categories. “We believe that the accelerated diversification from a microfinance to a small finance bank and the recent increase in franchise liabilities after a slow start bodes well for the bank,” the brokerage firm said. The target price of Rs 47 would result in a 20% increase from current levels.

Star cement

Target price – 115 rupees

Located in the region of the national capital, Star Cement is the largest cement company in the region. The Northeast region contributes 75% of total revenue with strong brand visibility that allows the company to enjoy premium prices in the region, according to the report. Financially, Star Cement is in a healthy position with low debt and strong profitability ratios. Axis Securities analysts expect the company to improve its EBITDA margins from 20.6% in fiscal year 20A to 23.9% in fiscal year 23. It is seeing a 13% rise for the stock to reach its price. objective.

Solara Active Pharma Sciences

Target price: Rs 1,350

API was the theme for 2020 and it doesn’t look like it’s going away anytime soon. Solara Active Pharma is a global pure gaming API player with over 80 commercial APIs. “Solara has the highest gross margins ~ 57% in the industry, reflecting that the company has pricing power and value-added products in the portfolio,” Axis Securities said. The API theme will also be key to watch in 2021 as it aligns with the PLI theme. To reach the target price, the stock could rise 14% from current levels.

NOCIL

Target Price – Rs 176

NOCIL is the leader in the domestic rubber chemicals market with a ~ 40% share and a ~ 5% global market share. “We observe that there has been a significant improvement in the overall business since H2FY21, volumes and prices are experiencing an improving trend that is expected to improve significantly in FY22 thanks to the commercialization of new capacity, the increased contribution of new products and base low, ”Axis said. The brokerage firm sees a 22% increase for the shares.