Stock SIP Ideas For Long Term As Suggested By HDFC Securities

Similar to Mutual fund SIPs or systematic investment plans we can also opt for SIPs in stock in which there is anticipated bright future outlook. The SIP way of investment not only helps in averaging the cost of your investment into a particular scrip but instead of a lump sum investment also enables you to slowly and gradually offload some of your investible surplus to that opted scrip. For more clearer picture on how to opt for Stock SIP and who should go about giving a mandate for the same, read here.

]So, herein we put forth some 5 SIP Stock Ideas as listed by the leading brokerage house in case you can have a long term horizon for the investment call:

Bharti Airtel:

The company is a global telecommunication player with a presence in 18 countries across Asia and Africa. In India, the company provides 2G, 4G wireless services, mobile commerce, fixed line services, home broadband, DTH and enterprise (B2B) services with a wireless subscriber base of around 353 mn subscribers (according to the Telecom Regulatory Authority of India).

The company has an international presence in Africa and holds a prominent position there with a sizable consumer base.

After the company has lately hiked tariffs of its prepaid offering in India, ARPU or average revenue per user is seen to trend higher, improving the financial standing of the distressed concern owing to financial burden due to AGR issue, spectrum charges etc.

The company has a strong holding in terms of spectrum and over the years it has been expanding it.

Also, it lately took over sub-GHz spectrum that improves the overall network coverage offering.

The company's rights issue opened on October 5 is estimated to have amassed more than Rs. 5200 crore from the first payment tranche.

BPCL:

This divestment bound PSU is an integrated refining and marketing PSU entity It is India's second-largest oil marketing and the third-largest refining company. The company's subsidiary Bharat Oman Refineries Ltd (BORL) operates a 7.8-mtpa refinery in Bina.
Budgeted capital expenditure outlay (capex) is pegged at Rs 100bn for FY22.

Post sale of 100% stake in NRL, BPCL accounts for nearly 14.13% of the country's refining capacity and held around 20% share in the domestic petroleum market as of March 2021. In key products, the company has a higher retail share.

Also, expansion in capacity at various refineries together with upgradation shall boost the company's Gross Refining Margin.

Threats however are economic slowdown which is yet again put at risk with the outbreak of the new variant and regulatory changes for the sector. Further the company confronts under-recoveries owing to controlled prices of domestic SKO and LPG.

Infosys:

Investors can also initiate a SIP in this defensive stock which has a strong outlook given the pace at which digital adoption is happening across domains. The company is among the leading providers of consulting, technology, outsourcing and next-generation digital services.

Healthy deal wins could help the company to report a steady improvement in financials in coming quarters. Infosys has raised FY22E constant currency revenue growth forecast to 14-16% from 12-14% earlier and operating margin guidance for FY22 continues to be in the range of 22- 24%.

The company's investments across new technologies will enable it to serve top notch demand. In Fy22 Q1 the company signed 22 huge deals with TCV at US$2,570 mn.

Key concerns or threats rupee's appreciation which as of now is on a depreciating trajectory close to hit the 76 per US dollar mark, stringent immigration policies and ban on US H-1B and L1 visa.

Financial details of these stocks which are recommended for SIP investment

 

Stock	Industry	CMP	M-Cap as on December 10, 2021	P/E TTM
Bharti Airtel	Telecom	Rs. 710.7	Rs. 3,97,288 cr.	23.87
BPCL	Refineries	Rs. 396.95	Rs. 86,108 cr.	4.8
Infosys	IT	Rs. 1759.25	Rs. 7,39,859 cr.	35.42

Disclaimer:

Investing in stock markets is risky and your invested corpus is risked to high volatility and note the above the stock SIP ideas are as listed by the brokerage company and readers/ investors should not misconstrue the story as an investment call into these scrips.

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