Bajaj Auto, ITC And More - Top Stock Picks For Diwali And Samvat 2078: KRChoksey
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KRChoksey Research Report
Volume Growth Momentum Continues
The fast moving consumer goods sector has witnessed a major set back in the supply chain during the outbreak of the Covid-19 pandemic. ITC’s FMCG business also continues to leverage digital technologies to drive productivity, improve market servicing, draw actionable insights for sharp-focused interventions, augment sales force capabilities and deepen connect with retailers.
ITC has recently taken several initiatives which includes UNNATI (eB2B app) and VIRU (virtual salesman app) platforms, which facilitates digital ordering and trade engagement, direct-to-consumer e-commerce platforms (ITC-e store, which are now operational in 11 cities).
We believe that these digital initiatives will play as catalysts in revenue growth of the company
Bajaj Auto Ltd.
Demand Continues To Surge
The key focus area for Bajaj Auto would be on capturing market share and it is positive on demand outlook from overseas market. The focus area for Bajaj Auto would be premiumisation of the segments going forward. The company is already facing inflation pressure due to higher commodity prices which may continue in H1FY22. The company expects cost to increase by 3% in FY22 of which it would recover ~2% through price hikes. The management will be focusing on cost optimization measures to improve margins in the coming quarters.
The company expects FY22 to be the best year for exports. It expects inflection point in between 3-5 years in electric vehicle segment. Bajaj Auto has positioned itself strongly in export markets, which account for ~50% of its two-wheeler export revenue.
The company has improved its brand equity which will help to improve its market share
Click on the attachment for the full list of KRChoksey's Diwali stock picks:
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