Top Picks for Today - Friday, April 3, 2020 - Angel Broking

KEI Industries: High order book execution in EPC segment, rising B2C sales and higher exports to boost the revenues and profitability

Hawkins Cooker: We forecast HCL to report healthy top-line CAGR of ~14% to Rs. 976cr over FY19-22E on the back of government initiatives, new product launches, strong brand name and wide distribution network. On the bottom-line front, we estimate ~23% CAGR to Rs. 100cr due to strong revenue and operating margin improvement.

GMM Pfaudler: Post the GMM Pfaudler (CMP INR 2542.5) Q3FY20 numbers we are introducing our FY22 EPS estimate of INR 114.5. We raise our target price to INR 2864 (25xFY22E EPS estimate)

Asian Paints: Asian Paints (APL) is India's largest paints company. We expect APL to report healthy bottom-line CAGR of ~19% over FY2019-22E due to leadership position, strong brand, wide distribution network (60,000+ dealers across the country) and improvement in operating margins (back of falling crude prices).

Bata India: We expect Bata India to report net revenue CAGR of ~11% to ~Rs. 3,974cr over FY2019-22E mainly due to increasing brand consciousness among Indian consumers, new product launches, higher number of store additions in tier II/ III cities and focus on high growth women's segment. Further, on the bottom-line front, we expect CAGR of ~20% to Rs. 562cr over the same period on the back of margin improvement (increasing premium product sales).

Nestle India: Nestle India Ltd (Nestle) manufactures and sells a variety of food products such as Milk & Nutrition, Prepared Dishes & Cooking Aids, Powdered & Liquid Beverages and Confectionery. Going forward, we expect healthy growth and profitability on the back of strong brand recall, wide distribution network (4.6mn outlets across India) and new product launches.

Hindustan Unilever: Hindustan Unilever Ltd (HUL) is engaged in manufacturing of branded and packaged FMCG products. We expect HUL to report healthy bottom-line CAGR of ~12% over FY2019-22E due to healthy volume growth on the back of strong brand, wide distribution network

Colgate Palmolive: We believe that the company should ultimately be able to see sharper market share gain in toothpastes segment on the back of higher ad-spend and re-launch of Colgate Strong Teeth (decent traction seen in last quarter)

Avenue Supermart: Avenue Supermarts owns and operates the supermarket chain 'D-MART'. Focused on value retailing, it offers a wide range of fast-moving consumer (food and non-food) products, general merchandise and apparel.We expect DMART to report consolidated revenue/PAT CAGR of 18%/26%, respectively over FY2019-22E.

P&G Hygiene: P&GHH manufactures, distributes and markets three major brands in India - Whisper, Vicks, and Old Spice. Sanitary Pads having less than 20% market penetration leaves immense growth opportunity for Whisper. Going forward, we expect healthy growth and profitability on the back of strong brand, wide distribution network and new product launches.

Source : Equity Bulls

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