Indian markets are already in a festive mood, as both the Sensex and the Nifty50 have reached new highs. The S&P BSE Sensex surpassed 60,000 points in September, while the Nifty50 crossed 18000 points in October. The festival of Dussehra is approaching, followed by Diwali in November. On the occasion of Dussehra, Mr. Siddhartha Khemka, Head- Retail Research, Broking & Distribution, Motilal Oswal Financial Services Ltd. recommends the following stocks to be a part of Indian investors’ portfolio to achieve success and growth:

Stock Name	Rating	TP (INR)
SBIN	BUY	600
INFY	BUY	1,890
Birla Corp	BUY	1,740
Lemon Tree	BUY	64

SBIN (TP: 600)

• Among PSU Banks, SBIN remains the best play on a gradual recovery in the Indian economy, with a healthy PCR, Tier I of ~11.3%, strong liability franchise and improved core operating profit.
• While business trends were impacted by the lockdowns, loan growth is likely to recover gradually over FY22-23E. Even slippages are expected to moderate meaningfully over 2HFY22 as asset quality remains impeccable in the Retail book.
• It appears well positioned to report strong uptick in earnings, led by normalization in credit cost. This, along with expected uptick in core operating performance, will further propel earnings growth.
• We estimate PPOP at 14% CAGR over FY21-23E v/s 6% CAGR (FY18-21), enabling SBIN to achieve ~15% RoE (decadal high) by FY23E.
• Subsidiaries (SBI MF, SBILIFE, SBICARD, SBI Cap) have exhibited robust performances over last few years, supporting our SoTP valuation.

INFY: (TP: 1,890)

• We expect the company to deliver a top quartile growth performance in FY22E on the back of its strong technical capabilities and ramp up in deal wins in FY21.
• The management increased its FY22 USD revenue growth guidance to 14- 16% CC YoY from 12-14%. It characterized the current demand environment to be one of the strongest in a while.
• There has been sustained growth acceleration, with seven industries reporting strong double digit growth. With Cloud becoming a Digital priority, many clients are taking advantage of Infosys Cobalt.
• We continue to view INFO as a key beneficiary of a recovery in IT spends in FY22, given its capabilities around Cloud and Digital transformation.

Birla Corp (TP: 1,740):

• Cement demand has remained strong post FY18 (barring Covid-19 related disruptions) and we expect demand momentum to remain strong led by a) strong rural demand, b) recovery in organized real estate and c) government’s continued focus on infrastructure development.

• Further, BCORP targets expanding grinding capacities to 30mtpa by 2027 vs. current capacity of 15.6mtpa. The capacity will get increased to 19.5mtpa after commissioning of integrated plant with a grinding capacity of 3.9mtpa in Mukutban, Maharashtra by FY22E and 20.5mtpa after expansion of Kundanganj, Uttar Pradesh grinding capacity by 1mtpa in FY23E. This provides strong volume growth visibility for FY23E.
• Rising coal/pet coke prices may restrict strong earnings upside in the near-term and we forecast EBITDA CAGR of 3% over FY21– 23E (on a strong base of FY19-21 as EBITDA increased at a CAGR of 20% in this period).
• The valuation is attractive at 8.0x FY23E EV/EBITDA (~10% discount to its 10-year average) and USD85/t of capacity (~15% discount to its replacement cost).We maintain Buy rating

Lemon Tree : (TP: 64)

• LEMONTRE operates in the mid-priced market and has a higher share of domestic customers (85%), which are likely to witness faster demand recovery.
• Revival in corporate demand would remain a key trigger to watch out for going forward. Post mid-Jun’21, the company saw a gradual increase in occupancy with the easing of travel restrictions.
• The majority of the recent demand has primarily been driven by the Retail segment, which has increased to 50%. Retail rates are 1.2x higher than average rates – as these are last-minute bookings. Lower rates are applied to large corporates, which contribute ~20% to LEMONTRE’s demand (currently pegged at 3%). SME contributes 25%, meetings/incentives 10%, and foreigners 10%.
• LEMONTRE is seeing slow demand from corporates and foreigners (due to travel restrictions) – this is expected to bounce back over the near term (roughly by 4QFY22). We maintain our Buy Rating on the stock.