Top ten investment ideas by experts which can give up to 38% return in next 1 year

Source: Economic Times

Benchmark indices managed to bounce back in trade on Thursday, snapping five days of continuous fall, as sentiment in global markets turned positive after the US Federal Reserve meet. The Cabinet nod to the GST Bill also raised hopes of reforms in the coming months.

For the long-term investors, the recent fall provides a good opportunity to enter stocks at lower levels and average out their positions, say experts. The S&P BSE Sensex has corrected over 1800 points in the month of December alone.

If the market corrects more in the coming days, investors should add more fundamentally strong stocks on dips, considering the fact that valuations are still reasonable, they say.

“I am not of the camp of those who say the market is in for a major correction. I do not think there is a major reason for a significant correction in India,” said Sudip Bandyopadhyay, President, Destimoney Securities.

According to a Prabhudas Lilladher report, India continues to offer a better growth opportunity among the emerging markets and if the domestic growth returns stronger, the relative flows are likely to be higher.

“The Indian equity markets have corrected in the last few days in line with the global cues. The market will be keenly watching the winter session on the implementation of GST, hiking the FDI limit in insurance etc. The implementation of these is some of the key policy initiatives the markets will be waiting for. We also believe that India is relatively better placed in the EM universe,” the report said.

We have collated a list of top ten investment ideas, from different brokerage firms, which can be bought in the falling market, for a period of the next 12 months:

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Brokerage firm: Prabhudas Lilladher

TCS: Target price set at Rs 3,050

According to the management, the quarter will see usual seasonality in-line with the previous year Q3. In terms of verticals, BFSI and retail verticals may witness usual seasonality, whereas telecom and smaller verticals would grow faster than company average, while insurance and energy is likely to witness weakness.

The management was circumspect to talk about any early trends. However, the challenges highlighted by them were largely linked to the macro scenario.

The brokerage doesn’t expect downward revision in earnings for FY15 and FY16 despite challenges.

“We roll our model forward for FY17, and revise target price to 3,050 (from Rs 2,800),” the report said.

SBI: Target price set at Rs 351

SBI has reported a pick-up in growth in core operating profits (31% YoY), though NII growth has been slightly soft due to flattish trend in advances growth. Asset quality has showed some positive signs with stressed assets accretion moderating on sequential basis.

Asset quality held stable with fresh slippages moderating to 2.6 per cent annualized vs 3.3 per cent in Q1FY15 while fresh restructuring also declined on sequential basis.

“We reiterate that Opex efficiency will help better PPOP growth with SBI adequately providing on pensions & wage revisions. We retain BUY with a revised target price of Rs 351,” the report said.

 

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