Best Stocks to Invest in 2021

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The Indian share market has been witnessing volatility as the second COVID-19 wave is causing fear amongst market participants. India is reporting almost three lakh new cases per day as compared to one lakh cases during the peak of the first wave in 2020. Given the intensity of the second wave, it will take some time for the government to bring it under control. Domestic research and brokerage firm expects the markets to consolidate in the near term. While the sharp increase in Covid cases is a matter of concern, the low mortality rate and expectations of ramp-up in vaccination over the next few months should help limit the fallout from the second Covid wave. “We believe that sectors which are rural-focused or will benefit from increased digitisation and import substitution not only offer long term revenue visibility but are least likely to be impacted due to the second Covid wave,” it said. Below are the Stocks-

HCL Technologies

HCL Technologies is the best stock to invest in 2021 during Covid second wave. This is an Indian multinational information technology services and consulting company, headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of HCL Enterprise.

Stock price: HCLTECH (NSE) ₹956
23 Apr, 2:14 pm IST – Disclaimer
CEO: C Vijayakumar (Oct 2016–)
Founded: 11 August 1976
Headquarters: Noida
Subsidiaries: HCL America, Inc., Geometric Limited, Actian, MORE
Parent organisation: HCL Enterprise
Founders: Shiv Nadar, Arjun Malhotra

The brokerage firm expects a 16 per cent rally in HCL Technologies share price. It has pegged a target price of Rs 1,160. It said that at CMP the stock is trading at a P/E multiple of 17.0x FY22 EPS estimate which is at a significant discount to the other large-cap IT companies like Infosys and TCS and offers tremendous value at current levels given market leader status in Infrastructure management.

IDFC First Bank

IDFC First Bank is an Indian banking company with headquarters in Mumbai that forms part of IDFC, an integrated infrastructure finance company. The bank started operations on 1 October 2015. IDFC FIRST received a universal banking licence from the Reserve Bank of India in July 2015.

Stock price: IDFCFIRSTB (NSE) ₹51
23 Apr, 2:30 pm IST – Disclaimer
CEO: V. Vaidyanathan
Headquarters: Mumbai
Parent organisation: Infrastructure Development Finance Company
Founded: October 2015
Subsidiaries: IDFC Bharat Limited, Idfc First Bank Limited, Asset Management Arm

IDFC is the best stock to invest in 2021. The stock will require to jump 52 per cent from the current levels to hit the target price of Rs 75. IDFC First Bank, post-management change has clearly outperformed in building liability franchise and retail lending. Since new management took charge, every quarter. liability franchise has been strengthened.

Federal Bank

Federal Bank Limited is a major Indian commercial bank headquartered in Aluva, Kochi. The bank has more than 1,200 branches spread across different states in India. It also has its Representative Offices abroad at Abu Dhabi and Dubai.

Stock price: FEDERALBNK (NSE) ₹72.
23 Apr, 3:05 pm IST – Disclaimer
Headquarters: Aluva, Kochi
CEO: Shyam Srinivasan
Founder: K.P Hormis
Founded: 23 April 1931, Nedumpuram
Subsidiaries: Fedbank Financial Services Limited.

A massive 53 per cent rally in Federal Bank stock price can be seen. It has a target price of Rs 110 apiece. NPA’s have remained steady for the bank over the past few years with GNPA for Q3FY21 at 3.38 per cent while NNPA ratio stood at 1.14 per cent. PCR at the end of Q3FY21 stood at 67 per cent .

NRB Bearings Ltd

NRB is India’s largest needle and cylindrical roller bearings producer headquartered in Mumbai. NRB was incorporated in 1965 as an Indo-French venture with Nadella and pioneered the production of needle roller bearings in India.

Stock price: NRBBEARING (NSE) ₹102.90
23 Apr, 3:30 pm IST – Disclaimer
Headquarters: Mumbai
Founded: 1965
Number of employees: 3,000
Subsidiaries: SNL Bearings Ltd., NRB Bearings Thailand Ltd., NRB Bearings Europe GmbH
Key people: Tashwinder Singh, R. M. Vishakha

With the Auto industry back on a growth track and exports also doing well for the company. NRB Bearings stock to rally 49 per cent and do well going forward. The management has highlighted that exports growth should be in excess of 20 per cent for FY21 driven by demand from existing customers as well as new customers.

Escorts Ltd

Escorts Limited is an Indian multinational conglomerate and automotive engineering company that operates in the sectors of agri-machinery, construction machinery, material handling, and railway equipment. Its headquarters are located in Faridabad, Haryana

Stock price: ESCORTS (NSE) ₹1,138
23 Apr, 3:30 pm IST – Disclaimer
Founder: Har Prasad Nanda
Founded: 1960
Headquarters: Haryana
Revenue: 1,700 crores USD (2019)
Number of employees: 10,000 plus (2019)
Subsidiaries: Escorts Construction Equipment Limited

Escorts stock is expected to jump nearly 30 per cent to Rs 1,573. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as better than expected Kharif crop in 2020. The tractor industry to continue to outperform the larger automobile space in FY21 with Escorts a key beneficiary.

GNA Axles Ltd

GNA Axles Ltd. has a large variety of Axle Shafts ranging from 1.5kg to 65kg & having capacity to produce up to 165kg producing about 2 million Axle Shafts annually. Our long-standing global presence is owed to experience in the development and manufacture of Real Axle Shafts.

Stock price: GNA (NSE) ₹390
23 Apr, 3:30 pm IST – Disclaimer
Headquarters: India
Founded: 1993
Subsidiary: GNA Axles Inc.

GNA is expected to be one of the biggest beneficiaries of a strong growth outlook for truck sales in US and European markets which are witnessing a strong recovery in demand. The domestic brokerage house sees a 53 per cent jump in the share price, with a price target of Rs 500.

Ashok Leyland

Ashok Leyland is an Indian multinational automotive manufacturer, headquartered in Chennai, Tamil Nadu, India. It is owned by the Hinduja Group. It was founded in 1948 as Ashok Motors and became Ashok Leyland in the year 1955.

Stock price: ASHOKLEY (NSE) ₹111
23 Apr, 3:30 pm IST – Disclaimer
Parent organisation: Hinduja Group
CEO: Vipin Sondhi (12 Dec 2019–)
Founder: Raghunandan Saran
Founded: 7 September 1948
Headquarters: Chennai
Subsidiaries: Optare, Hinduja Leyland Finance Limited

Demand for MHCV was adversely impacted post peaking out due to multiple factors including changes in axel norms, increase in prices due to implementation of BS 6 norms followed by sharp drop in demand due to the ongoing Covid-19 crisis. Expected target price is Rs 145, a rally of 32 per cent.

Galaxy Surfactants Ltd

One of the leading players in the world of surfactants and specialty care ingredients, exclusively focussed on catering to the Home and Personal Care Industry.

Stock price: GALAXYSURF (NSE) ₹2,635
23 Apr, 3:30 pm IST – Disclaimer
Headquarters: Navi Mumbai
Founded: 1980
Subsidiaries: TRI K Industries Inc, Galaxy Chemicals Inc

Company has a very strong relationship with MNC clients like Unilever, P&G, Henkel, Colgate-Palmolive and supplies raw materials to them not only in India but also in US, EU and MENA region. It has a target price of Rs 2,750, a gain of 7 per cent.

Metropolis Healthcare Ltd

Metropolis Labs is a chain of diagnostic companies, with its central laboratory in Mumbai, Maharashtra. Metropolis Healthcare has a chain of 124 clinical laboratories and 2400 collection centers across 7 countries including India.

Stock price: METROPOLIS (NSE) ₹2,397
23 Apr, 3:30 pm IST – Disclaimer
Founder: Dr. Sushil Kanubhai Shah
Founded: 1980
Headquarters: India
Revenue: 856 crores INR (2020)
Number of employees: 4,500 (2015)
Subsidiaries: R.V. Diagnostic and Health Care Center Pvt. Ltd.

A long term prospects of Metropolis Healthcare, given expected long term growth rates of 15% CAGR, stable margins profile and moderating competitive intensity. It has a price target of Rs 2,850, an upside of 15 per cent.

Carborundum Universal

Carborundum Universal Ltd, a part of Murugappa Group, is one of the largest and oldest conglomerates in India. CUMI is the leading manufacturer and developer of abrasives, ceramics, refractories, aluminium oxide grains, machine tools, polymers, adhesives and electro minerals in India.

Stock price: CARBORUNIV (NSE) ₹481
23 Apr, 3:30 pm IST – Disclaimer
Parent organisation: Murugappa Group
Headquarters: Chennai
Key person: M. M. Murugappan
Founded: 1954
Subsidiaries: Murugappa Morgan Thermal Ceramics Ltd, MORE

While demand from the Auto sector has been robust I expect demand from the metal industry to pick up given increased economic activity. The brokerage house expects a 25 per cent upside in the stock price.

PVR

PVR Cinemas is a film entertainment company in India. The company started as a joint venture agreement between Priya Exhibitors Private Limited and Village Roadshow Limited in 1995 with 60:40 ratio. It began its commercial operations in June 1997.

Stock price: PVR (NSE) ₹1,139
23 Apr, 3:30 pm IST – Disclaimer
CEO: Ajay Bijli
Headquarters: Gurugram
Founder: Ajay Bijli
Founded: June 1997
Subsidiaries: Cinemax India Ltd., SPI Cinemas, PVR Pictures

I expect a massive 77 per cent rally in PVR stock price. It has a target price of Rs 1,800. Multiplex screens are gaining ground in India at the expense of single screens. “Share prices have corrected significantly as most of the theaters are operating at very low capacity utilisation due to the lack of any major releases due to the Covid-19 crisis,” it added.

Note: The stock recommendations in this article are by the experts and brokerage firm. Upvey does not bear any responsibility for their investment advice.

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