Last year we recommended 6 stocks and below shown is the stellar performance of the same have a look at it before going further:

Stocks related to Sectors such Alternative energy, Defence, Green Hydrogen, AI, EV, and Infrastructural Development, Railway infrastructure will be in more focus and will gain more momentum in upcoming years. So below are the top picks from each sector based on their Fundamental Analysis and Growth Potentials backed by continuous efforts of Government to boost above mentioned sectors through PLI schemes growth plans.

1. L&T (CMP: 3032.80; Market cap: 4,26,350.51 ; Stop loss: 2730; Upside: 20%)

Larsen & Toubro is an Indian multinational engaged in business EPC Projects, Hi-Tech Manufacturing and Services which includes Construction, Hydrocarbon, Power, Minerals and Metals, Heavy Engineering, Defence Engineering, Defence Shipbuilding, Construction and Mining machinery. Its other other divisions includes L&T Valves, L&T Technology Services, L&T Infrastructure Development project Limited, L&T Metro Rail, L&T Financial Services, L&T Realty, L&T SuFin, L&T Edutech, LTI Mindtree, L&T Green Tech It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over eight decades. In FY23 company’s order Inflow for the year stood at Rs. 2,30,528 crores, achieved on the back of major domestic order wins in Hydrocarbon and Infrastructure and its large, growing and diversified total Order Book stood at Rs. 3,99,526 crores as on March FY23. Out of total order book of Rs. 230,538, Infrastructure projects contributed 51%, Energy Projects 13%, Hi-tech Manufacturing 7% IT & Technology 18%, Financial Services 8%, Development Projects 2% and other businesses contributed 4% of total orderbook position. Its International Orderbook position stood at Rs. 1,11,779 crores of which Middle East region contributed 87% of total revenue. The company’s market cap has recently crossed an important threshold of Rs. 3 lakh crores. The demand for data centres will expand as the digitalisation drive gathers momentum and to cater that growing demand company has the formed Cloudfiniti which is aimed at offering cutting edge technology solutions through the state-of-the-art data centres and cloud infrastructure. Company is also getting ready to ride the global green transition wave by developing Green Hydrogen project installation / EPC capability and setting up manufacturing facilities for electrolysers and battery cells. Company has also signed of a binding agreement with McPhy Energy, a France-based leading electrolyser technology and manufacturing company to set up GW-scale manufacturing facility in India to serve the domestic requirements as well as cater to the other markets. Company has been heavily investing in alternative fuel of the future i.e. green Hydrogen and for the same company has also signed an agreement with the Indian Institute of Technology Bombay to jointly pursue research and development work in the Green Hydrogen value chain.

It has also formed a JV with Indian Oil and Renew formed for development of Green Hydrogen Business with equal stake in it by all the three companies and a separate JV with IOCL to manufacture Electrolyzers. Company has also started production of Green Hydrogen its first Green Hydrogen Plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat which will produce 45 Kg of Green Hydrogen daily for captive consumption in the company’s Hazira manufacturing complex.Considering the company’s contribution in Infrastructure development of India with years of experience and foray into futuristic sectors such as Data Centres, Green Hydrogen etc. company is well poised to enjoy healthy order book and well-organized flow of income in upcoming years so investors can invest or reinvest in this company with buy in dips strategy for long term period.

2. Tata Motors (CMP: 650.80  ; Market cap: 2,16,234.70 ; Stop loss:585 ; Upside:25% )

Tata Motors Limited is a leading global automobile manufacturer of cars utility vehicles buses trucks and defence vehicles. It is India's largest automobile company and part of the USD 37 billion Tata Group. It has operations in the UK, South Korea, Thailand, South Africa, and Indonesia through a strong global network of 86 subsidiary and associate companies including Jaguar Land Rover in the UK and Tata Daewoo in South Korea. In India Tata Motors is a market leader in commercial vehicles and among the top passenger vehicles manufacturers with 9 million vehicles on Indian roads. With design and R&D centres located in India the UK Italy and Korea Tata Motors strives to pioneer new products that fire the imagination of GenNext customers. The company has invested Rs 15,000 crore in the EV segment in the next five years and £4 billion in an electric car battery factory in the UK which have a 40GW capacity to supply around half a million EVs annually. Recently the company’s EV subsidiary Tata Passenger Electric Mobility Limited has signed an MoU with Jaguar Landrover to develop premium pure electric vehicles under the 'Avinya' series. Recently the company has supplied the first batch of state-of-the art Ultra EV air-conditioned electric buses to Srinagar Smart City Limited, via TML Smart City Mobility Solutions (J&K) Pvt Ltd, a Tata Motors Group company. The company has also launched a commercial EV pickup vehicle named Tata Ace Ev in Nepal. So far, the company has also achieved a big milestone of selling 1 Lakh Tata EVs since inception and the last 50K sales was achieved in just 9 months and it has covered 1.4 billion Kms which is equal to the three round trips to the Sun and by doing so the company has saved a notable 2,19,432 tons of CO2 emissions. Standard Chartered Bank, India has partnered with Tata Motors for offering Supply Chain Finance Solutions for TML’s Passenger Electric Vehicle dealers. The Company has also showcased future concepts at the Auto Expo 2023 – the Curvv, Harrier EV, Sierra EV and the Avinya which will open new segments of customers in India. In October 2023, Tata Motors Limited sales in the domestic & international market for October 2023 stood at 82,954 vehicles, compared to 78,335 units during October 2022 including Total CV Sales of 34,317 units, +4% YoY and Total PV Sales of 48,637 units, +7% YoY. Recently the company has unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions and it constitutes of engine test cell for development of Hydrogen Internal Combustion Engine and the necessary infrastructure for storage and dispensing of Hydrogen fuel for the Fuel Cell and H2ICE vehicles. Recently the company has acquired 275 stakes in Freight Tiger a digital platform that provides end-to-end logistics value chain solutions for cargo movement in the country for a consideration of Rs 150 Crores and it will further invest Rs 100 Crores over the next two years. The company recently delivered first-of-its-kind Hydrogen Fuel Cell powered (FCEV) buses to Indian Oil Corporation Ltd. (IOCL). Considering company’s domestic presence across India along with its growing strength across the globe through JLR, its early move in Ev industry accompanied by upcoming launches and foray into Green Hydrogen powered vehicles investors can invest in this automobile major for a long-term period.

FINANCIAL INSIGHTS (as per Fy23 and 6 months FY24):

To sum up, we will like to add that there are many more stocks with amazing growth potentials going further and we regularly upload research reports on our website in News section. So, to refer them keep visiting our website and wish you all a Happy a Safe Diwali!! May your portfolios see more upside rockets in upcoming year!

HET ZAVERI

info@smartinvestment.in

(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody. Investors must take advice from their financial advisors before investing in any stocks.)