• SENSEX
    NIFTY 50
Market

COVID-19 resilient 2.0 portfolio: IIFL Securities lists 9 stocks with up to 28% upside

Updated : May 11, 2021 02:16 PM IST

The second wave of COVID has been proving to be more disastrous than the first and many economic and health indicators are already pointing towards a downward revision in the GDP forecast. In such a scenario, brokerage house IIFL Securities suggest investing in the COVID resilient sectors. Sectors like Healthcare, Pharma, Diagnostic & select FMCG will continue to thrive during the FY22, it added. For FY21, it has built and recommended a 'Covid Resilient Portfolio' considering valuations and taking a bottom-up approach in the light of sharp rally in broader markets. Aided by the increased global liquidity and defensive COVID resilience nature of the portfolio, it expects very limited downside risk for these stocks. Here's the list:

 Cipla : The brokerage has a 'buy' call on the stock with a target at Rs 1,050 per share, indicating a 15 percent upside to the stock. IIFL expects Cipla to register an FY23E EPS of 15 percent to factor in the Revlimid launch.
Cipla: The brokerage has a 'buy' call on the stock with a target at Rs 1,050 per share, indicating a 15 percent upside to the stock. IIFL expects Cipla to register an FY23E EPS of 15 percent to factor in the Revlimid launch.
 Metropolis Healthcare:  The brokerage has a 'buy' call on the stock with a target at Rs 2,880 per share, indicating a 21 percent upside to the stock. IIFL believes Metropolis is well-positioned to sustain its B2C growth momentum, as two-thirds of its expanded service network is relatively young. It sees a 21 percent revenue and 20 percent EPS CAGR for Metropolis over FY21-23.
Metropolis Healthcare: The brokerage has a 'buy' call on the stock with a target at Rs 2,880 per share, indicating a 21 percent upside to the stock. IIFL believes Metropolis is well-positioned to sustain its B2C growth momentum, as two-thirds of its expanded service network is relatively young. It sees a 21 percent revenue and 20 percent EPS CAGR for Metropolis over FY21-23.
 JB Chemicals : The brokerage has a 'buy' call on the stock with a target at Rs 1,680 per share, indicating a 17 percent upside to the stock. IIFL expects a return on invested capital (post-tax) to improve to 36 percent by FY23E and strong FCF generation to sustain.
JB Chemicals: The brokerage has a 'buy' call on the stock with a target at Rs 1,680 per share, indicating a 17 percent upside to the stock. IIFL expects a return on invested capital (post-tax) to improve to 36 percent by FY23E and strong FCF generation to sustain.
 Apollo Hospitals:  The brokerage has a 'buy' call on the stock with a target at Rs 3,204 per share, indicating an 11 percent upside to the stock. IIFL noted that Apollo’s overall hospital occupancies improved to 63 percent in Q3FY21 from 56 percent in Q2FY21. Management indicated that occupancies should reach pre-COVID levels of 68-70 percent by Q1/Q2FY22, led by a pick-up in international patients, domestic travel and improving surgical volumes.
Apollo Hospitals: The brokerage has a 'buy' call on the stock with a target at Rs 3,204 per share, indicating an 11 percent upside to the stock. IIFL noted that Apollo’s overall hospital occupancies improved to 63 percent in Q3FY21 from 56 percent in Q2FY21. Management indicated that occupancies should reach pre-COVID levels of 68-70 percent by Q1/Q2FY22, led by a pick-up in international patients, domestic travel and improving surgical volumes.
 Dr Lal Pathlabs : The brokerage has a 'buy' call on the stock with a target at Rs 3,390 per share, indicating a 16 percent upside to the stock. With a dominant presence in North India, Dr Lal intends to deepen its penetration in North & East India through the addition of 12- 15 clinical labs annually. IIFL forecasts a 15 percent EPS CAGR for the firm over FY21-23 and expects strong near-term momentum in the COVID business.
Dr Lal Pathlabs: The brokerage has a 'buy' call on the stock with a target at Rs 3,390 per share, indicating a 16 percent upside to the stock. With a dominant presence in North India, Dr Lal intends to deepen its penetration in North & East India through the addition of 12- 15 clinical labs annually. IIFL forecasts a 15 percent EPS CAGR for the firm over FY21-23 and expects strong near-term momentum in the COVID business.
 Dabur : The brokerage has a 'buy' call on the stock with a target at Rs 620 per share, indicating a 14 percent upside to the stock. As per IIFL, Dabur is ticking the right boxes in terms of riding the healthcare momentum and has accordingly stepped up the ad-spends intensity.
Dabur: The brokerage has a 'buy' call on the stock with a target at Rs 620 per share, indicating a 14 percent upside to the stock. As per IIFL, Dabur is ticking the right boxes in terms of riding the healthcare momentum and has accordingly stepped up the ad-spends intensity.
 Thyrocare Tech : The brokerage has a 'buy' call on the stock with a target at Rs 1,250 per share, indicating an 18 percent upside to the stock. IIFL expects 12 percent revenue and 23 percent EPS CAGR for Thyrocare over FY21-23.
Thyrocare Tech: The brokerage has a 'buy' call on the stock with a target at Rs 1,250 per share, indicating an 18 percent upside to the stock. IIFL expects 12 percent revenue and 23 percent EPS CAGR for Thyrocare over FY21-23.
 SBI Life:  The brokerage has a 'buy' call on the stock with a target at Rs 1,230 per share, indicating a 28 percent upside to the stock. IIFL expects India’s largest private life insurer on a retail APE basis to deliver strong growth in FY22, as its distribution channel comes back full force and the product mix stabilizes with a rise in the share of protection.
SBI Life: The brokerage has a 'buy' call on the stock with a target at Rs 1,230 per share, indicating a 28 percent upside to the stock. IIFL expects India’s largest private life insurer on a retail APE basis to deliver strong growth in FY22, as its distribution channel comes back full force and the product mix stabilizes with a rise in the share of protection.
 Cadila Healthcare:  The brokerage has a 'buy' call on the stock with a target at Rs 670 per share, indicating a 15 percent upside to the stock. Cadila may continue to see the benefit of its COVID-drugs portfolio in FY22. Cadila’s Remdesivir is the lowest-priced variant in the Indian market and the management expects the strong double-digit growth in the Indian business to sustain for the next couple of quarters.
Cadila Healthcare: The brokerage has a 'buy' call on the stock with a target at Rs 670 per share, indicating a 15 percent upside to the stock. Cadila may continue to see the benefit of its COVID-drugs portfolio in FY22. Cadila’s Remdesivir is the lowest-priced variant in the Indian market and the management expects the strong double-digit growth in the Indian business to sustain for the next couple of quarters.
Published : May 11, 2021 02:16 PM IST
Live TV

recommended for you

Ask Our Experts CNBC TV18

Advertisement