RIL, HDFC stocks at huge discount: Motilal Oswal’s top 10 large-cap picks that could give up to 50% returns

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Updated: November 21, 2018 4:58:28 PM

A recent report had picked out 10 of large-caps which which have slipped up to 27% from their 52-week highs and could be attractive bets for investors -- delivering returns of up to 50%.

large cap stocks, ril share priceReliance Industries, HDFC, Infosys, SBI, ICICI Bank and Maruti Suzuki are among stocks that could return up to 50%.

During the last three months, when the benchmark BSE Sensex corrected nearly 10% from its August record high, some large-cap stocks too slipped from their 52-week highs. A recent report has picked 10 of these large-caps which could be attractive bets for investors — delivering returns of up to 50% — and stocks like Reliance Industries, HDFC, Infosys, SBI, ICICI Bank and Maruti Suzuki are a part of the list.

In a recent report titled “India Strategy: Q2 FY18 earnings report”, brokerage firm Motilal Oswal has handpicked 10 large cap stocks which have slipped up to 27% from their 52-week highs and could deliver gains of up to 9-47%. These 10 large caps are Reliance Industries, HDFC, Infosys, State Bank of India, ICICI Bank, Maruti Suzuki, L&T, Axis Bank, Titan Company and Hindalco.

Also read: These mid-cap stocks could double your money; Motilal Oswal picks 10 stocks trading at huge discount

large cap stocks, ril share priceImage source: India Strategy – Q2 FY18 earnings report (LTP as of November 16)

While the brokerage firm sees an upside of 31% in Reliance Industries, Hindalco could deliver up to 47% returns, the report showed. The report has also picked 10 mid-cap stocks which, despite a steep correction of up to 40% from their 52-week highs, could deliver returns of up to 92%. These 10 stocks include names like Marico, Shriram Transport Finance, RBL Bank, Exide Industries, Tata Chemicals, JSPL, Oberoi Realty, Mindtree, Crompton Greaves Consumer Electrical and TeamLease Services.

With respect to Nifty earnings, the brokerage firm said India Inc’s second-quarter earnings season was broadly in line with the brokerage’s expectations. “While the underlying earnings story is improving (better revenue growth trends, corporate banks’ asset quality turning around, etc.), new risks to earnings are also emerging (autos, NBFC). Consequently, the direction of the earnings revision is still trending down,” Motilal Oswal said. After the end of the second quarter earnings season, 73 companies saw earnings cut of over 3% while 38 companies saw upgrades of over 3%, the report said.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock (s) mentioned.

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