Stocks for 2022: From auto to telecom to pharma, top 10 stocks to buy for bumper returns in New Year

As we enter 2022, the domestic brokerage firm - CapitalVia Global Research lists out the top 10 stocks from heavyweights to broader markets

ZeeBiz WebTeam | Dec 31, 2021, 02:33 PM IST

As we enter 2022, the domestic brokerage firm - CapitalVia Global Research lists out the top 10 stocks from heavyweights to broader markets. With huge potential to surge further, the brokerage has picked these stocks from sectors ranging from telecom to auto to pharma for bumper returns. 

The Indian benchmark indices – Sensex and Nifty50 – reported average growth of around 21-23 per cent this year and are expected to grow in the coming year on the back of multiple triggers starting from the biggest economic event – Budget 2022.  

Here are the top 10 stocks:

1/10

Motherson Sumi | Target: 320

Motherson Sumi | Target: 320

We believe that the business will benefit from the industry’s product mix shifting towards hybrid cars and electric vehicles from internal combustion engines. Focus on higher content per vehicle to gain further traction.  

 

(Pic: https://www.motherson.com/)

2/10

GAIL | Target: 170

GAIL | Target: 170

Gail is a beneficiary of increasing gas consumption and government’s focus to expand gas as a key energy transition fuel. Stable volume growth along with higher profitability from gas trading, and LPG segment due to higher oil & gas prices will add value. Gail India is planning to expand in petrochemicals, specialty chemicals and renewables to supplement growth in its core business of natural gas marketing and transportation.

 

(Pic: https://gailonline.com/) 

3/10

IPCA Lab | Target: 2800

IPCA Lab | Target: 2800

IPCA Labs has a strong volume growth in domestic formulation across products, cost competitive and consistent quality in active pharmaceutical ingredient (API) segments. The key therapeutic segments include cardiac, pain management, anti-malarial and anti-diabetic, anti-infectives. The company derived 46 per cent of its revenues from the domestic market while 54 per cent from international markets in FY21.

 

(Pic: https://www.ipca.com/)

4/10

Reliance Industries | Target: 2850

Reliance Industries | Target: 2850

RIL's long-term potential and dominating position in each of its product and service portfolios give it confidence in creating long-term value. Going forward, RIL's consumer business will be the main engine of growth. Following the fundraising, the company's balance sheet is robust, and its traditional operation will continue to generate consistent cash flows. We also see Incremental value accretion from the ‘digital ecosystem’ that will be captured at the Jio Platforms. 

 

(Pic: https://www.ril.com/)

5/10

Mahindra & Mahindra | Target: 1100

Mahindra & Mahindra | Target: 1100

Mahindra and Mahindra, world’s largest tractor manufacturer and the third-largest passenger vehicle manufacturer in India, M&M is targeting 10 times increase in the agricultural implements segment to drive growth in the medium term (by 2027). 

 

(Pic: https://www.mahindra.com/)

6/10

Paras Defence | Target: 1300

Paras Defence | Target: 1300

It wants to take advantage of import substitution opportunities provided by the Indian government's Atmanirbhar Bharat and 'Make In India' programmes. As a result, we favor Paras because of its complex/wide product range, niche defense/space presence, strong customer relationships, and high entry hurdles. 
Given the government's strong emphasis on defence, the stock represents a solid chance for investors to participate in this niche market. 

 

(Pic: https://www.parasdefence.com/)

7/10

Zen Technologies | Target: 300

Zen Technologies | Target: 300

Zen Technologies has got a tremendous boost in manufacturing the drones after the government’s recent drone incentive programme and relaxation in the laws of flying drones. The Indian government authorised a Rs 120 crore production-linked incentive plan for the manufacture of drones and their parts over the next three years. We believe that Zen Tech being the leader in manufacturing drones in India the government incentives would increase the order books and help the company achieve new heights in years to come. 

 

(Pic: https://www.zentechnologies.com/)

8/10

TCS | Target: 4400

TCS | Target: 4400

TCS has formed a very solid client base and has increase its profits during the corona phase. Being the leader of the sector, we expect the momentum to continue and further growth in the company. We have seen the companies switch to digitalization and the IT sector has fully been benefited with this demand and we expect the demand to further continue in the market.

 

(Pic: https://www.tcs.com/)

9/10

Hero MotoCorp | Target: 3200

Hero MotoCorp | Target: 3200

Hero MotoCorp is India’s leading two-wheeler manufacturer in terms of unit sales in a calendar year. It holds nearly 50% of the market share in the Indian motorcycle market. With the new development of the Electronic vehicles Hero Moto is very well placed to be able to lead the market and use its current channel to grow in the coming times. 

 

(Pic: https://www.heromotocorp.com/en-in/)

10/10

Bharti Airtel | Target: 870

Bharti Airtel | Target: 870

Bharti Airtel is a good stock to hold for Long Term. In the past 15 years, the company has successfully survived every difficulty in the industry. The customer base has also steadily increased with quarter on quarter despite the price hike recently which was followed by all the major telecom companies later.  
Bharti Airtel’s lower churn and strong network capability underscore the potential to see similar healthy growth in the coming years as well. 

 

(Pic: https://www.airtel.in/about-bharti/about-bharti-airtel/)

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