Sandip Das Moneycontrol News
The Indian stock market rallied in the first half of FY2016-17 where the Nifty touched a high of 8968 on September 8 while the Sensex rallied to 29077. But the rally was short lived weighed down by concerns relating to the US interest rate hike, outcome of US Presidential elections, a shallow Q2 earnings and also by the effect of demonetisation. But individual stocks among all sectors, be it large cap, mid cap or small cap did give handsome returns.
Below are the 5 largecap Nifty stocks which gained the most in FY16-17
Hindalco Industries: Buy | target price of Rs 228
Among the large caps, the stock that gained the most was Hindalco Industries which gave a stellar performance in FY16-17, rallying over 120 percent from the levels of Rs 87 all the way to Rs 195. The company reported a 3-fold jump in net profit of Rs 440 crore in September quarter from the corresponding period last year. The company also registered a net profit of Rs 321 crore in Q3 against a loss of Rs 33 crore in the same period of last year. Morgan Stanley has maintained overweight rating on Hindalco Industries for a target of Rs 228.
Yes Bank: Buy | target price of Rs 1820
In the banking space it was Yes Bank that registered a price rise of 76.76 percent from sub-1000 level to Rs 1529.05. Bank of America Merrill Lynch has maintained a buy rating on Yes Bank for a target of Rs 1,820. Also, Religare has maintained a buy rating on the stock or a target price of Rs 1,600, which indicates a potential upside of 41 per cent from its previous close. Yes Bank's retail deposits have gone up by 3-4 per cent in last 10 days due to demonetisation which will boost its margin, Religare added.
Maruti Suzuki: Buy | target price of Rs 6720
In the 4-wheeler space, Maruti Suzuki has been the standout performer in FY16-17 with the stock rising 61 percent to Rs 6004 backed by new launches including IGNIS, Vitara Brezza and the Swift. The rise of its stock price was also helped by its brand CIAZ which overtook the Honda City to be at the top in the sedan space. Broking house ICICIdirect.com believes strong earning visibility should command premium valuation. Hence, they value at 21x FY’19E EPS of Rs 320 to arrive at a target price of Rs 6720 with a buy rating on the stock.
Tata Steel: Sell | target price of Rs 410
In FY 16-17, Tata Steel has risen by Rs 174, a gain of 54 percent quoting at around Rs 493 against Rs 319 in the same period of previous year. The company reported a consolidated profit of Rs 232 crore in its Q3 earnings. Although, the stock has risen 54 percent in FY16-17, broking house Centrum Broking has a sell rating on the stock with a target price of Rs 410.
Bharat Heavy Electricals: Sell | target price of Rs 98
In the capital good space, heavy engineering company Bharat Heavy Electricals has given a whopping 50 percent gain since March 29, 2016 from the levels of Rs 114 to hit 52-week high of Rs 172 on March 21, 2017. However, Macquarie has maintained high conviction underperform call on Bharat Heavy Electricals with a target price of Rs 98. The house feels that there is a real possibility that order inflows may witness a significant decline as BHEL has not been able to get final go-ahead on a number of prospects.
In the year gone by, Hindalco Industries has given 121 percent return, followed by Yes Bank with 76.76 percent return. Maruti Suzuki has risen by 61.58 percent in FY 16-17 while Tata Steel and BHEL have risen 54.27 percent and 46.73 percent respectively.
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