Watch out! Experts name 12 stocks that could create wealth post COVID-19

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26 Aug, 2025 12:21

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To find multibaggers in the current market is tough because for stocks to give 2-3 times returns will take some time. But for now, experts name scrips that could generate wealth with buy on dip strategy.

The rise in COVID-19 related cases has raised uncertainty about the global economy. The International Monetary Fund expects "global growth will turn sharply negative in 2020", and it could be the worst economic fallout since the Great Depression.

Investor portfolios could be sitting on a draw-downs of more than 30-40 percent. But, can we say that markets will only head down south? Well, maybe not.

There is still hope and that is where value investing comes into play. History suggests that Nifty corrects 7-50 percent before making a bottom, and the recovery usually takes 8-60 months, according to data collated by ASK Wealth Advisors.

There is hope, but the recovery could be some time away. The easier way to ride out of the storm is to focus on quality, big-ticket large-cap names which have the capability, and the balance sheet strength to weather the storm.

Volatility is likely to continue at least till the time there is a medical breakthrough with respect to the COVID-19 cure or vaccine. But, it is an excellent time to build your portfolio with a time horizon of 3-5 years.

India Inc. is likely to face the heat due to COVID-19 related lockdown which has now been extended till May 3. But, once things stabalise with respect to new cases related to Coronavirus, companies should see buying interest not just from domestic investors, but also from foreign investors.

The Indian market has corrected sharply from its peak and we have seen massive wealth erosion in most of the top-quality stocks as growth and earnings for FY21E are expected to be adversely affected.

“With a change in the market dynamics, we could see a change in the sectoral allocation by the fund managers to stay relevant. Amid all, we believe there are quite a few top names that are trading either close to or below their historical average P/E and provide a margin of safety at current levels,” Gurpreet Sidana, Chief Operating Officer, Religare Broking Ltd told Moneycontrol.

“We recommend accumulating stocks like ICICI Bank, Hindustan Unilever (HUL), Cipla, Reliance Industries and HDFC Life Insurancegradually for healthy long term gains. In our opinion, it’s an excellent time to build a long term portfolio as many fundamentally sound counters are available at a good bargain,” he said.

To make a portfolio, experts advise putting 30%-40% of their investable corpus at the current levels and wait for further correction or clarity over the market direction.

“As we all know during these uncertain times, there are certain quality stocks that got hammered and have the potential to generate hefty returns once the dust settled and the economy began to recover,” Lav Chaturvedi, ED & CEO at Reliance Securities told Moneycontrol.

“Stocks like ICICI Bank, Maruti Suzuki, Hero MotoCorp and UltraTech Cement, etc. can potentially generate relatively better returns in the large-cap space,” he said.

Satish Kumar, Head of Equities, Equirus Securities said that getting multibagger returns such as 2X, 3x returns requires patience and a hell lot of it.

“For the next 12 months scenario, we like large caps. Our picks are HDFC Bank, ICICI Bank, Britannia, PI Industries, Ultratech, and Siemens,” he said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.