By Admin 
Stocks to buy: Amidst the ongoing conflict between America and Iran and increasing tension in the Middle East, brokerage firm UBS (Union Bank of Switzerland) has suggested some stocks which have the potential to give strong returns of up to 42 percent in the coming time. These stocks can prove to be helpful in overcoming the shock faced by investors due to the rise in oil prices. Let’s see the complete list:-
Reliance Industries
With a target price of Rs 1780 per share, the brokerage firm believes that there is scope for an upside of up to 26 percent from the current level. Some part of the company’s crude oil sourcing comes from the Middle East. However, the brokerage expects this risk to be mitigated by alternative sources of supply in the near future. About 35 percent of the company’s revenue is related to ‘oil-to-chemicals’ (O2C) business, where Reliance can benefit from strong ‘product cracks’ (price differences).
ICICI Bank
The brokerage has given a target price of Rs 1630 to the shares of ICICI Bank. This is due to strong loan growth and low NPA in the private sector.
Bharti Airtel
The brokerage has given a target price of Rs 2400 to the country’s largest telecom company Bharti Airtel, which shows an increase of 31 percent from its current market level. The reason for this is the increase in average earnings per user (ARPU) and the expansion of 5G.
NTPC
The brokerage has given a target price of Rs 450 to NTPC, which is 8 percent more than its current price range. Heavy investment in renewable energy is being considered the reason for its growth.
Adani Ports
UBS has given a target price of Rs 1800 to the shares of Adani Ports. This represents an increase of 31 percent from its current level. Its dominance in logistics and strong earnings from ports are being held responsible for this.
Apollo Hospitals
The brokerage estimates that considering the target price of Rs 8750 per share, it may rise by 15 percent. The brokerage is positive on the growth outlook of the hospital sector as the fundamentals still remain in place – aging population, rise in lifestyle diseases, expanding healthcare insurance coverage and rising incomes. Private hospitals are among those benefiting the most from this trend. The brokerage further said that among the companies we cover, we like Apollo Hospitals.
Sun Pharma
UBS has also included Sun Pharma in its list with a target price of Rs 2000. This is 11.1 percent more than its current range. In fact, the domestic business outlook for pharma companies remains stable. Due to high logistics costs, export performance may come under pressure. However, most companies currently have about 2-3 months of channel inventory, which will help them continue meeting export demand in the times to come.
SBI Life Insurance
With a target price of Rs 2410 per share, the brokerage estimates an increase of 30.5 percent from the current market level. According to UBS, the company remains a good investment in India’s life insurance sector, supported by strong distribution strength and a consistent track record of embedded value (EV) growth. The brokerage’s investment thesis focuses on its ability to deliver a CAGR of 18% in EV over FY25-28, driven by recovery in annualized premium equivalent (APE) growth, deep distributor relationships and largely stable margins. (Disclaimer: The suggestions, views and opinions given by experts are their own. These do not reflect the views of The Economic Times)
Hindalco
With a target price of Rs 1210, the brokerage believes the stock can rise by about 40 percent from current levels. The fundamentals of the aluminum industry are strong, supported by a capacity cap of 45mt and sustained demand from mainland China. Given supply constraints and prolonged tensions in the Middle East—which accounts for 8-9% of world aluminum production—aluminum prices remain at risk of further upside.
Disclaimer: (The information provided here is being given for information only. It is important to note here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. ABPLive.com It is never advised for anyone to invest any money here.)
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