Though 2013 has not been very exciting for investor, analysts are pining hopes for the next year as the market is looking for triggers post the general elections. According to SMC Global Securities, the Indian market may touch new highs in the next year post general elections, attracting offshore funds despite an expected bumpy period for Emerging Markets (EM) as the Fed shifts the monetary policy. “Moreover, the various efforts taken by the government and the RBI to bring down current account deficit (CAD), to cushion the free fall of rupee, boost manufacturing and curb rising inflation have indeed sent out positive vibes, are likely to translate into growth numbers in the coming years,” it says in a report. So, while the market makes smart gains, gear up with these top 10 stock recommendations by SMC Global.
Wipro Target: Rs 705 Upside Potential: 29% Time horizon: 1 year Rationale: The strategy of focusing on the top 125 accounts is delivering the results. There is a broad based growth across the customers. Going forward, the growth momentum is likely to continue on the back of improved deal win rates and couple of large multi-year deal won by the company.
PNB Target: Rs 798 Upside Potential: 27% Time horizon: 1 year Rationale: PNB's September quarter ended performance is just an aberration as sluggish economy and high interest rates due to depreciating rupee and inflation have taken a toll on the profitability of bank. But in the next half year, it is expected to be healthier with stable rupee and improving economic conditions in the country.
Adani Port & Special Economic Zone Target Price: 219 Upside potential: 37% Time horizon: 1 Year Rationale: In the last few years, the company has reported steady growth in its revenue and profits. Going forward, the company is likely to maintain the growth momentum on the back of huge capex undertaken by the company.
Cairn India Target: Rs 421 Upside Potential: 32% Time horizon: 1 Year Rationale: In the last few years, the company has delivered strong financial performance. The company is focused on exploration across the asset portfolio both in India and core areas internationally and has also started the seismic survey in its South Africa block, which is in line with company's exploration led growth strategy focused on replacement and growth of reserves leading to long term sustainable value creation.
Crompton Greaves Target: Rs 202 Upside Potential: 53% Time horizon: 1 Year Rationale: With a unique combination of businesses, the company is well poised to capitalise on future global growth opportunities. Going forward, the company is expected to register a healthy sales growth, supported by strong order backlog.
Escorts Target: Rs 179 Upside Potential: 28% Time horizon: 1 Year Rationale: The company will continue to remain focused on execution to further improve the operating performance in the months ahead. Consistently strong results over the past few quarters is an outcome of introducting high power and specialised tractors, which are improving volumes and strengthening margins.
Essel Propack Target: Rs 68 Upside Potential: 30% Time horizon: 1 Year Rationale: The company's business is driven by strong and sustained growth of the FMCG sector. Its R&D capability, global customer network, large scale and manufacturing expertise, may help in seizing the opportunity that is being continuously thrown up across the globe.
M&M Target: Rs 1202 Upside Potential: 25% Time horizon: 1 Year Rationale: The company continues its efforts on developing new products and technologies to meet the ever growing customer needs, regulatory requirements, competitive pressures and to prepare for the future. The price increases will help to protect and maintain margins at around 11 percent, going forward.
Sesa Sterlite Target: Rs 264 Upside Potential: 33% Time horizon: 1 Year Rationale: The management of the company expects to recommence mining in Karnataka soon and is hopeful that the Goa mining suspension will be resolved by the Supreme Court soon. On this back drop, the company has a robust growth potential going forward.
Torrent Pharma Target: Rs 655 Upside Potential: 37% Time horizon: 1 Year Rationale: The company is planning to improve its development through expansion into further locations and increasing its presence in new therapeutical area as well as launch of new products to fill gaps in its current portfolio.