Diwali shopping list: 7 largecaps may give high returns

Moneycontrol BureauThe fed uncertainty has irked global investors with markets tumbling while India is still enjoying what is called a relief rally. After the US Fed's overnight decision to hold interest rates at record lows fanned worries about the health of the global economy, Indian market is still poised for a good surge feel analysts. The Nifty is likely to head higher in the medium term and a re-test of old highs of around 9,300 could be on the cards, says Sanjay Dutt, Director at Quantum Securities. 

Now, domestic investors are eyeing the Reserve Bank of India's monetary policy review on September 29 before Indian market head to Diwali extravaganza. While analysts make the calculations and churn a new portfolio, here is something that can spin some money for you. Motilal Oswal has picked 7 companies which have potential to become Good-to-Great. These stocks made the final cut averaged cumulative stock returns that are 6.9 times the general market over the 15 years following their transition point. Based on disciplined management, goal-oriented target and results, the brokerage feel these seven companies stand out.

ITC

The brokerage has set a target price of Rs 360 with a buy rating.Attractiveness:#ITC enjoys an unchallenged monopoly, with 84 percent value share in the organised segment.#ITC’s operating margins likely  to expand from 37.4 percent in FY15 to 39.2 percent in FY17.Maruti The brokerage has set a target price of Rs 5290 with a buy rating.Attractiveness:#Market share to increase by 200bp to 48 percent led by 16.5 percent volume CAGR over FY15-18. This coupled with better mix would drive 20 percent revenue CAGR.#EPS CAGR of 42 percent likely over FY15-18.