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Mirae Asset Capital Markets has unveiled its top 10 stock picks for the upcoming quarter, spotlighting a range of companies that have demonstrated strong performance and growth potential. Here’s a closer look at the selected stocks and what investors can expect:

1) Bank of Baroda (BoB)

Mirae Asset Capital Markets has set Bank of Baroda's target price at Rs.300, offering an expected return of 18.1% from the current share price of Rs.254. Bank of Baroda maintains a positive outlook with growth targets of 12-14% for loans and 10-12% for deposits. The bank's strong capital base supports a projected 13% loan CAGR over FY24-26E.

2) ICICI Bank

ICICI Bank, with a target price of Rs.1,400, offers an expected return of 16% from the current share price of Rs.1,208. The bank reported impressive Q1FY25 results, showcasing a 15% YoY increase in PAT to Rs.111 billion, driven by strong Return on Assets (RoA) of approximately 2.2%, robust Net Interest Margin (NIM), and diversified income streams. Loan growth picked up by 3% QoQ, while deposits grew by 0.9%. The bank's asset quality remains stable, and it is targeting a 17% CAGR over FY24-26E.

3) Jupiter Lifeline Hospitals

Jupiter Lifeline Hospitals has a target price of Rs.1,502, presenting an expected return of 14% from the current share price of Rs.1,315. The hospital showcased a robust Q1FY25 performance with an 18% YoY revenue growth to Rs.2.8 billion. The company's expansion plans, including new hospitals in Pune and Indore, are set to drive future growth.

4) Mrs. Bectors Food Specialities

Mrs. Bectors Food Specialities has a target price of Rs.1,565, offering an expected return of 12% from the current share price of Rs.1,395. The company demonstrated strong growth in Q1FY25, with revenue rising by 17.4% YoY to Rs.4,394 million, led by a 22.4% growth in the biscuit segment.

5) Infosys

Infosys has a target price of Rs.1,960, offering an expected return of 11% from the current share price of Rs.1,758. Infosys delivered a strong Q1FY25 performance, upgrading its revenue growth guidance to 3-4% in constant currency YoY. The company saw a 3.6% QoQ revenue increase, bolstered by large deals and growth in BFSI and India sectors.

6) Cholamandalam Investment and Finance Company (CIFC)

Cholamandalam Investment and Finance Company (CIFC) has a target price of Rs.1,575, offering an expected return of 10% from the current share price of Rs.1,432. CIFC reported mixed results for Q1FY25, with AUM growing by 6.8% QoQ, though disbursements and asset quality showed some weakness. NIM improved to 6.8%, and CIFC maintains its disbursement growth guidance of 20-25% for FY25. With an optimistic AUM growth outlook, the company remains well-positioned for the future.

7) Varun Beverages

Varun Beverages has a target price of Rs.1,734, offering an expected return of 10% from the current share price of Rs.1,577 as of July 25, 2024. The company reported a 28.7% year-over-year increase in Q2CY24 revenue to Rs.73.3 billion, with a 28.1% rise in volume. Gross margins improved to 53.7%, and EBITDA margins reached 27.2%. The company showed strong performance in both the Indian and international markets.

8) LTIMindtree

LTIMindtree's target price is Rs.5,900, offering an expected return of 6% from the current share price of Rs.5,562. The Q1FY25 results showed stable revenue growth of 2.5% QoQ, driven by large deals. The EBIT margin improved to 15.0%, although it was slightly below estimates. The company expects continued growth in Q2, supported by BFSI and AI investments; however, margin pressures are anticipated.

9) Mphasis

Mphasis has a target price of Rs.3,185, offering an expected return of 5% from the current share price of Rs.3,030. Mphasis experienced a slight revenue decline of 0.1% QoQ due to reduced DXC business and project completions. Nevertheless, the EBIT margin improved to 15.0%, and new deal TCVs surged by 80% QoQ. Despite a muted Q1FY25, Mphasis’s strong growth pipeline justifies the target price.

10) Apollo Hospitals

Apollo Hospitals reported a robust 15% YoY revenue increase to Rs.50.85 billion in Q1FY25. Operating profit surged by 32.6% YoY, and PAT grew by 31% YoY to Rs.3.05 billion. The company's expansion plans, including the addition of new hospitals and improvements in digital services, support a strong investment case. The stock trades at 33x/26x FY25E/FY26E EV/EBITDA.

Mirae Asset Capital Markets’ top picks for this quarter reflect a diverse range of industries with strong growth prospects and stable financials. Investors should consider these stocks as potential additions to their portfolios, aligning with their investment strategies and risk tolerance.

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