Hot stocks for 2023: Angel One expects these 14 stocks to deliver up to 55% upside

Brokerage Angel One maintained its bullish stance on over a dozen of stocks from across the sectors including banking consumer durables, real estate, auto ancillary and FMCG for the next 12 months. It thinks that Sona BLW Precision Forgings may touch Rs 700 in 2023, indicating an upside of over 55 per cent from the current market price of Rs 450.

Sona BLW is one of India's leading automotive technology companies that derives around 40 per cent of its revenues from battery electric vehicles (BEV) and hybrid vehicles. The company has a strong market share ranging from 55-90 per cent for differential gears for passenger vehicles, commercial vehicles and tractor OEMs in India.

“Given the traction in the BEV or hybrid vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by around 49 per cent earnings CAGR over FY21-24E,” Angel One said.

The brokerage is also optimistic about Amber Enterprises with a target price of Rs 3,000. Shares of the company closed at around Rs 1,999 on December 13. While sharing its view on Amber Enterprises, Angel One added that it expects healthy profitability for Amber on the back of a foray into the commercial AC segment, entry into export markets and participation in the PLI scheme.

Amber Enterprises India is the market leader in the room air conditioners (RAC) outsourced manufacturing space in India.

The brokerage also gave a ‘Buy’ rating to stocks like Stove Kraft, Suprajit Engineering, Sobha Limited, Oberoi Realty, Devyani International and Jubilant Ingrevia with an upside of between 25 per cent and 43 per cent.

In the banking space, Angel One recommended AU Small Finance Bank with a target price of Rs 848, showing an upside of nearly 28 per cent. It is followed by Federal Bank (Target price: Rs 155) and HDFC Bank (Target price: Rs 1,850).

AU Small Finance Bank is one of the leading small finance banks. It has a well-diversified geographical presence across India. AU has a very high exposure to high-margin retail business which accounted for 80 per cent of AUM at the end of FY2022.

PI Industries (Target price: Rs 4,000), Devyani International (Target price: Rs 255) and Marico (Target price: Rs 600) are among the other favourites of Angel One.

“We expect PI Industries to post revenue and PAT CAGR of 17 per cent and 24 per cent between FY22-FY24 driven by 20 per cent growth in the CSM (Custom Synthesis Manufacturing) business over the next 2-3 years. Moreover, foray into new segments like electronic chemicals and APIs will also help drive growth over next 3-4 years for the company,” the brokerage said.

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