LKP Securities recommends 10 stocks for investment
The Indian equity markets are experiencing a decline due to concerns about valuations and a slowing economy. LKP Securities believes there is a buying opportunity in large-cap stocks, especially in the banking and consumer durables sectors, and has given 'BUY' ratings for several companies. The Nifty 50 index's price-to-earnings (PE) ratio for 2025 earnings is now at 18.8, which LKP sees as an attractive point for investment. The firm suggests that, with significant price corrections, large and mid-cap stocks can offer stability and growth. The sectors they recommend include consumer durables, two-wheelers, tractors, banking, and capital goods. LKP Securities has identified ten key stocks to invest in. They include: 1. **State Bank of India (SBI)**: SBI shows consistent performance with strong profitability. Expected net interest margins to remain stable. LKP has set a target price of ₹890, suggesting a 23% potential rise. 2. **Larsen & Toubro (L&T)**: Positioned for growth due to India’s infrastructure investments, L&T is anticipated to exceed revenue and order targets. The target price is ₹4,070, with an expected 28% upside. 3. **Kotak Mahindra Bank (KMB)**: KMB is experiencing strong growth. The target price is ₹2,314, indicating a potential 16% increase. 4. **Mahindra & Mahindra (M&M)**: M&M is poised for growth with successful launches and strong brand reputation. A target price of ₹3,378 implies a 10% upside. 5. **Axis Bank**: The bank's shift to retail and SME lending is improving its loan mix. LKP has a target price of ₹1,251, suggesting a potential rise of 21%. 6. **Bajaj Auto**: With a strong recovery in exports and growth in the domestic market, Bajaj Auto has a target of ₹9,177, indicating over 22% potential growth. 7. **Havells India**: Driven by demand in infrastructure, Havells has a target price of ₹1,770, suggesting a 21% upside. 8. **NMDC**: Higher domestic prices are boosting NMDC’s growth. The target price is ₹88, with a 35% potential increase. 9. **Ashok Leyland**: Expected to see a recovery in volumes, Ashok Leyland has a target price of ₹266, indicating a 34% upside. 10. **AIA Engineering**: AIA has a strong position in the market despite short-term challenges, with a target price of ₹4,230, hinting at a 32% potential increase. Investors are advised to consult certified experts before making investment decisions.