Stock Picks: Up to 31% upside; Here are 6 top high conviction investment ideas

Sun Pharma: The brokerage has a 'buy' call in the stock with a target price of ₹1,013, indicating a 15 percent upside in the pharma major. The specialty segment of the company looks attractive due to the robust ANDA pipeline and ramp-up in branded drug prescriptions, said the brokerage, adding that the incremental benefit from the limited competition drug such as gPentasa and gSensipar will fuel the revenue growth further. The India business continues to grow at a high double-digit with increased market share, however, increased costs on the R&D front will limit the EBITDA margins to 26 percent in FY23, it said. Delay in clinical trials or patient recruitment and higher than anticipated price erosion are key risks.

Ashok Leyland: SMIFS sees the auto stock rising nearly 30 percent to ₹184 in the next 12 months, and has a buy call on the stock. As per the brokerage, the combination of CNG product introduction, market tilting towards MHCVs, replacement cycle kick-in, scrappage implementation from April 2023, and improving bus demand are all extremely positive triggers for topline growth. The broekrage is positive on Ashok Leyland as the best days for CV upcycle has begun, which should continue to run at least for the next three years, driven majorly by the replacement demand, followed by the implementation of scrappage policy starting April 2023. Replacement demand and scrappage are major triggers to drive earnings and valuation expansion, it added.

Aarti Industries: The stock can jump nearly 25 percent to ₹982, say SMIFS. It has a buy call on the stock. The brokerage said that Aarti Industries has a very large addressable market in India and is probably the only company manufacturing more than 125 products into benzene derivatives, toluene derivatives, pharma intermediates and APIs supplying to more than 500 domestic and 125 international customers. The company's end-user industries are very much diversified and 60 percent of the business is towards specialty-related products. It is bullish on the stock as Aarti industries kind of a legacy is very difficult to replicate and with the company investing ₹4500-5000 crore over the next 3 years, it will enhance its penetration, visibility and reach amongst its global peers.

TCI Express. The brokerage is bullish on the logistics stock and sees it jumping 16 percent to ₹2,010. TCI Express is well positioned to capitalize on the growing opportunities in the domestic logistics space, noted the brokerage. The company plans to further strengthen its efficiencies and capabilities through automation, setting up new sorting centers, adding new branches and launch of new services, it added. TCI has a healthy balance sheet with net cash of ₹104 crore at the end of Q1FY23, it added. The un-ability to pass on any sharp fuel price increase, a slow ramp-up of new services, and a slowdown in customer business are key risks.

Suprajit Engineering: The brokerage has a buy call on the stock with a target price of ₹400, indicating a 20 percent potential upside in the stock. The firm has received orders of ₹140 crore and investment is likely to continue which anticipates high growth in the coming years, noted SMIFS. Light duty cable acquisition (incorporated from FY23e) will position Suprajit as a global leader in cables, it not only provides plants in low-cost countries but will also add few marquee EV names like TESLA & few other Chinese EV OEMs, pointed out the brokerage. It added that the firm's traditional businesses will also continue its good performance as cost pass on is happening, winning new businesses & have a strong order book. Built-in estimates conservatively, the valuation looks attractive, noted the brokerage

Steel Strips Wheels: The brokerage is bullish on the stock and has a target of ₹1,055, implying a potential upside of 31 percent. As per the brokerage, the combination of increasing alloy wheels sales, higher exports, and the uptick in the CV cycle, no major capex will turn around its financials with an increased margin, better return ratios, higher free cash flow generation and reduction in debt levels. In addition, the company is getting a lot of traction & orders from electric 2-Wheelers, which is big value addition, it added.