Stock markets are often touted as a place where abnormal gains can be enjoyed but there is a certain amount of risks associated with it. Indian equities are going through a bull phase from the last one year. Amid this turbulent market, investors desperately search for decent investment ideas which can provide them adequate returns. The key equity indices Sensex and Nifty have returned about 25% in 2017 so far. The IPO (initial public offering) market is also raging like a bull, as more than Rs 65,000 crore had been raised from the public issues. Domestic markets have seen some of the biggest issues in India this year, notably, Rs 11,370 crore public issue of General Insurance Corporation, Rs 9,600 crore share sale of New India Assurance and Rs 8,700 crore high profile issue of HDFC Standard Life Insurance etc.
There are a plenty of stocks which had beaten the stellar performance of benchmark indices even. Have you ever thought of putting all of your eggs in one basket, we bring you four stocks from three diverse sectors, banking, pharmaceuticals and oil. Interestingly, buying these top stocks will not only make a diversified investment but also there is a great upside too.
Thyrocare technologies — Prabhudas Lilladher
Shares of Thyrocare Technologies have almost been flat in the year 2017 but the research and brokerage firm Prabhudas Lilladher has given a ‘buy’ rating with a target price of Rs 1,067 from the current market price of Rs 668 which implies an upside of 59%. “With strong free cash flow and guidance of 25% (+/-2%) sustainable annual growth with ~40% EBITDA margin, we expect valuations of diagnostic companies to remain at a premium,” Prabhudas Lilladher said in a report.
State Bank of India — MOSL
Shares of India’s largest bank by assets, State Bank of India have grown about 30% since January this year, due to boost provided by the government after it announced the mega recapitalisation plan of RS 2.11 lakh crore to ease the conditions of NPA-laden PSU banks. The research and brokerage firm Motilal Oswal Securities has given a ‘buy’ rating with a target price of Rs 415 from its current market price of Rs 337 which implies an upside of 23%.
HDFC Bank — Prabhudas Lilladher
Shares of India’s largest bank by market capitalisation HDFC Bank have returned more than 50% in 2017. Prabhudas Lilladher has given a ‘buy’ rating with a target price of Rs 2,136 from the current market price of Rs 1,806 which implies an upside of 18%. “Bank has been following strong practice of higher provisioning on bad assets which provides cushion on P&L and B/s risks minimizes,” Prabhudas Lilladher said in a report.
Indian Oil Corporation — MOSL
The stock of India’s largest company by revenues Indian Oil Corporation had returned about 22% in the calendar year 2017. Motilal Oswal Securities has given a ‘buy’ rating with a target price of Rs 554 from the current market price of Rs 395 which implies an upside of 40%.