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Best Stocks to Buy in 2022

Introduction

Last year, 2021, was a blockbuster year for equities. Sensex moved by ~10,000 points while the Nifty moved ~5,000 points. Not just that, mid-cap and small-cap stocks also outperformed the market. According to our stock market experts, as we advance, 2022 will be driven by digital innovation, which impacts different stock market sectors.

Which Sectors to Bet on in 2022?

While metals, information technology (IT), healthcare, and the realty sector did considerably well in 2021, the following year is expected to be suitable for companies in the capital goods sector, auto ancillary, especially those involved in electric vehicles retail.

IT and real estate will also see further upticks in 2022. The demand for IT will continue to grow over the next 2-3 years, with solid spending coming into the sector. The government's focus on electrification and providing housing to all will also boost the realty sector.

Other sectors that will also gain traction in 2022 include steel, sugar and textiles. Small-cap and mid-cap stocks will continue to perform well.

Additional Read: How does Share Market Works in India?

Best Stocks to Buy in 2022

Based on these insights, here are the 10 top stocks to pick to be part of your portfolio this year:

1. Tech Mahindra

Tech Mahindra, part of the Mahindra Group of companies, provides IT and consultancy services to clients worldwide. ICICI Direct sees upside potential of 20% for this stock, with a target price set at Rs. 2,150 for the upcoming year.

2. eClrex

Another tech company on the list, eClerx, provides IT outsourcing and consulting to Fortune 500 companies. It has exposure to retail, financial services, communication, and media sectors. Many of these sectors are likely to perform well this year. Once again, ICICI Direct sees upside potential of 20% with a target price of Rs. 2,900.

3. Bharti Airtel

Bharti Airtel is next on the best stocks to buy in 2022. With a presence in 18 countries in South Asia and Africa, this telecommunications company has an upside potential of 27% at a target price of Rs. 860. The company certainly has growth potential with recent tariff hikes and a 5G connection slated for next year.

4. NRB Bearing

With the government's increasing focus on electrification, NRB Bearing, the country's largest needle and cylindrical rolling bearing producer is one of the top stocks to bet on in 2022. It is looking to go big on the electric vehicle segment. ICICI Direct pegs this stock's upside potential at 38% with a target price of Rs. 220.

5. Minda Corp

The flagship company of Spark Minda Ashok Minda Group, Minda Corp, serves domestic OEMs across mechatronics and aftermarket segments. The company is already supplying electric vehicle OEMs such as Ola. That's why our experts have a target price of Rs. 220 on the stock at an upside potential of 30%.

6. Phoenix Mills

With consumption catching up post-Covid-19, India's largest mixed-use developer in the retail space – Phoenix Mills – is also set for a good journey in 2022. The company is looking to double its mall space in five to six years. With the retail segment looking healthy, ICICI Direct has pegged the stock's upside potential at 21% at a target price of Rs. 1,200.

7. Radico Khaitan

India's fourth-largest Indian-made foreign liquor producer, Radico Khaitan, is set for an uptick with better consumption patterns expected for 2022. The liquor industry is experiencing premiumisation, likely to boost this stock. The target price has been determined at Rs. 1,450, a 17% upside from the current market price.

8. Dwarikesh Sugar

The sugar industry is expected to see a price hike as domestic and export of sugar are likely to increase. Keeping that in mind, small-cap company Dwarikesh Sugar is expected to grow 53% to Rs. 110 from its current market price.

9. Orient Cement

As the real estate sector continues to grow in the coming years, companies contributing to infrastructure such as Orient Cement have a good growth trajectory ahead of them. ICICI Direct forecasts an upside potential of 58% for this stock, with a target price of Rs. 250.

10. Aster DM Healthcare

Covid-19 has had a positive impact on healthcare equities, and our most promising pick among the lot is Aster DM Healthcare. The returns and margins for this company are expected to grow over the next year. The target price for this stock is pegged at Rs. 250, an upside potential of 43%.

Additional Watch: Best Stock Picks for 2022

Conclusion

If you are looking for a well-diversified portfolio of the best stocks to buy in 2022, there you have it. From retail and real estate to healthcare and telecom, several sectors have good growth potential. You can open a trading and demat account with ICICI Direct within 10 minutes and begin building your portfolio.

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