Raksha Bandhan 2022: Gift your sister stocks from capital market for bumper returns – Full list

Stocks to buy: Raksha Bandhan 2022 will be celebrated on August 11 this year. The festival is observed every year to celebrate the bond between brothers and sisters. On this day, sisters tie Rakhi on their brother’s wrists and brothers, in return, promise to protect their sisters and give gifts. For those looking to celebrate the occasion by giving special gifts to their sisters, we bring to you the list of stocks that can make sisters financially strong and achieve financial independence.

These stocks are fundamentally strong and are from different sectors. These stocks can yield a handsome return of around 25 per cent on a mid to long-term basis. The stocks recommended are by domestic brokerage firm YES Securities. 

1. Bharti Airtel – Buy – Target: 901, Upside: 28%, Period: 12 months

Bharti Airtel is a global communications solutions provider with over 490 million customers in 17 countries across South Asia and Africa. We see three levers of growth for Bharti: 1) 4G mix improvement, 2) market share gains from VIL, and 3) continued tariff hikes.

We believe despite the 5G investment payouts, Bharti is witnessing a shift in its FCF (free cash flow) generation capability that could translate into healthy deleveraging. The sector consolidation has led to multiple rounds of tariff hikes, translating into an increase in ARPU for Bharti.

Airtel has a long-standing relationship for connectivity services with Ericsson and Nokia while the partnership with Samsung will begin this year onwards. Choice of multiple partners will enable Airtel to roll out 5G services spanning ultra-high-speeds, low latency and large data handling capabilities.

2. Axis Bank – Buy – Target: 918, Upside: 26%, Period: 12 months

Axis bank is churning its book towards high yielding segments. Its market share in net credit cards added has improved dramatically after a lean CY20. Axis bank’s thrust on high yielding segments started playing out in FY22.  

The bank has brought down exposure to low-yielding offshore book and, as such, has not pursued low-yielding corporate loans (on the domestic side as well) as the pricing did not make sense. However, management expects the pricing environment to improve in the near to medium term.

The bank has 69% of its look book as floating rate book, of which 39% are Repo rate linked, 23% is MCLR rate linked, 2% EBLR rate linked, 2% is base rate linked and 3% is Foreign Currency. Fixed rate loans form 31% of the total loan book.

3. The Ramco Cements – Buy – Target: Rs 931 Upside: 23% Period: 12 Months

Management of The Ramco Cements (TRCL) expects ~12-15% volume growth for this fiscal with the increasing utilization of the newly added capacity. With the newly added capacities in east, TRCL is diversifying its geographical existence thereby higher share of blended cement (74% as of Q1FY23).  

We believe TRCL will generate healthy operating cash flows of INR 26.8bn and fund its ongoing capex (Rs 8.5 billion) and plans to deleverage its balance sheet over FY23-24E. The company is increasing its share of premium products which has reached 24% in Q1FY23.

TRCL has windfarms from which power is partly used for captive consumption and partly sold to the grid. The management has guided that the steps are taken to use entire wind power for the captive purpose to offset overall inflated power cost and increase the share of green energy by ~10%.

4. PSP Projects – Buy – Target: Rs 725, Upside: 18%, Period: 12 Months

PSP Projects is an integrated EPC company across the construction value chain from Design, Construction, Mechanical, Electrical, Plumbing (MEP), Interior, O&M Services. It is geographically diversified with presence in six states viz. Gujarat, Rajasthan, UP, Maharashtra, and New Delhi.

PSP Projects has 3 verticals – 1. EPC Projects (54% of total order Book), 2. Turnkey (38% of total order book), 3. Civil Construction (8% of total order book). It had a total order inflow of Rs 1802 crore in FY22 whereas from FY23 until now it has a total order inflow of Rs 1097 crore.  

The company has guided for steady growth of 20-25% in the order book every year. With strong order book, timely project execution and prudent management pedigree, we expect PSP Projects to post strong topline and bottom-line growth in the medium term.