The previous year 2017 has been one of the best for the Indian markets, as the 30-share Sensex had returned more than 27% since January. Interestingly, there have been a few Sensex stocks which have run up by by more than 80% in the last year. While some investors may be regretting the missed opportunity, these bluechip stocks remain a buy even at these levels. Stock market veteran Raamdeo Agrawal advises investors to hold on to compounders to create long-term wealth.
Raamdeo Agrawal of Motilal Oswal says that great companies can create well beyond investor expectations. “Great companies, and there but are just handful of them right now – live much longer than what investors’ think and they create big money compared to so-called stocks which double in quick time,” Raamdeo Agrawal said in a recent interview.
We take a look at top four Sensex stocks of 2017, and what top brokerages have to say about their prospects in 2018.
Shares of Tata Steel have returned more than 87% since January. In its latest research report, HDFC Securities has a buy call on the shares with a target price of Rs 818. The merger with Thyssenkrupp is seen as a major trigger for the stock. “The resultant entity will be the 2nd largest European steelmaker with vertically integrated operations in Port Talbot (UK), Ijmuiden (Netherlands) and Duisburg (Germany), driving significant consolidation,” noted the firm in its latest report. Tata Steel shares were trading flat at Rs 731.5 on NSE this morning.
Maruti Suzuki India
Shares of India’s largest car-maker, Maruti Suzuki India have returned more than 83% since January. Global brokerages including Morgan Stanley, CLSA and Citi are bullish on the shares of the company going forward with the target prices of Rs 10,563; Rs 10,000 and Rs 10,600 respectively. The consensus opinion is that Maruti Suzuki India has greater earnings visibility and the ability to sustain its market share. Notably, Maruti Suzuki India overtook SBI, to become India’s sixth most valued company in December-17, given the recent rally in share prices. The company currently commands a market capitalisation of 2.75 lakh crore as compared to SBI’s mcap of 2.69 lakh crore.
While many top experts have repeatedly reiterated that Bharti Airtel is under pressure from Mukesh Ambani-led Reliance Jio, the shares of Indian telecom major have had an excellent run at the bourses, returning more than 74%. Global brokerage firm Nomura has upgraded the stock to ‘Buy’ from ‘Reduce,’ while increasing the target for the scrip to Rs 625 from Rs 330 earlier. Bharti Airtel shares were trading at Rs 536 on NSE this afternoon. Nomura says that Bharti Airtel is slated to benefit from industry consolidation.
India’s most valued company by market capitalization, shares of Reliance Industries returned more than 72% last year. The rate cut by India’s telecom regulator TRAI has led global research and brokerage firms such as CLSA, Goldman Sachs and Bank of America cheering for Reliance Industries, even as the stock trades at near all-time high levels. In its latest report, CLSA has maintained a buy call on the stock with a target price of Rs 1,050. Reliance Industries shares were trading at Rs 919.15 on NSE this afternoon.