Compilation of Current & Diwali Picks 2013 by some Broking & FII Houses ~ Undertone remains Bullish

Disclaimer at the Outset : This is merely a Compilation that is in Public Domain.Though I do like a few Ideas,please do not assume or take it as given that I am endorsing any of these.Investors need to make their own call after assessing the Scrip’s Value and Price Risks and should seek Professional help,if needed, in doing so rather than just lap up these Ideas as definite Winners in 2014 ~ No one likes even a Notional Loss ! 

For those who are Interested these are the Current & Diwali Picks 2013 by some Broking & FII Houses

Sectors like Banking,Steel,Pharma and Healthcare,Technology,Agro,Oil & Gas,and Infra seem to find favour

Most of them have played safe ~ Some Ideas are fairly Core and Common like ICICI Bank,Reliance Industries and Axis Bank

Tata Steel has recovered well from lower levels and come back into favour this year and remains a Buy with most of them

Surprisingly I don’t spot Larsen & Toubro in any List ! 

The Undertone clearly remains bullish,but only just….driven by the Liquidity of over US  $ 16 billion Net FII Inflows this year that has boosted Sentiment & Momentum and taken the Sensex and Nifty to record all time Highs of 21250+ and 6300+ respectively ~ What is interesting is that Macro Valuations are not really outlandish or even expensive ~ however these must be viewed in the overhang of the Indian & Global Macro issues that continue to unnerve and cause uncertainty  

From these you can observe the Interesting High Potential Gain Ideas :

  1. Ashoka Buildcon from Emkay who are targeting an 84% rise in it
  2. Cadila from Angel Broking who are expecting a 35% rise in it
  3. United Phosphorous from Angel Broking who are targeting a 37% rise in it
  4. Adani Group Companies ! ~ Adani  Ports & Adani Power by Goldman Sachs who state that these mid infra companies  are at Low Valuations but the apparent reason is they are banking on Narendra Modi coming to power at the Centre too ~ in their own words they have ‘Modi-fied ‘ the Nifty upward
Nifty and Sensex Levels too have been projected 8% to 10% higher from current Levels in a years time ~ Nomura has predicted a Sensex level of 22000 even quicker by March 2014

Microsec 11 Diwali Picks

Company

CMP (29/10/13)

Target Price (1 Yr)

Upside Potential (%)

Axis

1251.20

1458.00

16.53 

Cairn India

315.90 

415.00

31.37

Exide Ind

124.00

153.00

23.39

GMDC

105.00

133.00

26.67

ICICI Bank

1075.45

1204.00 

11.95

Pidilite Ind

265.00

330.00

24.53

Rallis India

153.85

185.00

20.25

Tata Steel

326.00

410.00

25.77

Tech Mahindra

1523.30

1793.00

17.70

Nifty

6220.90

6860.00

10.27

Nifty is trading at 12.70 times FY 15 Exp EPS of 490 and should move towards 14 times by next Diwali to give a target of 6860

 

Emkay Global Financial Services 8 @ Diwali Picks

Company

CMP (30/10/13)

Target Price (1 Yr)

Upside Potential (%)

LIC Housing Finance

219

260

18.72

 Ashoka Buildcon Ltd

45

83

84.44

 Nestle India

5597

5000

(10.67)

 Lupin Ltd

902

996

10.42

 Havells India Ltd

751

770

2.53

 Bharti Airtel

360

400

11.11

 Grasim Industries Ltd 

2810

3500

24.56

Mahindra Holidays & Resorts India Ltd 

214

250

16.82

 

ICICIDirect 5 Diwali Picks but no Targets given

Company

CMP (30/10/13)

SBI

1740

 Bajaj Auto

2094

 Wipro

486

 ENIL

296

 Bajaj Electricals

161

 

Angel Broking 10 Diwali Picks

Company

CMP (23/10/13)

Target Price (1 Yr)

Upside Potential (%)

Wipro

492

567

15.24 

ICICI Bank

1025

1181

15.22 

Hindustan Zinc

135

156

15.56

Axis Bank

1210

1392

15.04

Cipla

423

504

19.15 

Tata Steel

335

390

16.42

Cadila

660

894

35.45

United Phosphorous

164

225

37.20

Aurobindo Pharma

216

271

25.46

Crompton Greaves

98

115

17.35

Sensex

20768

22600

8.8

 Expect the Sensex EPS to post a growth of 9.6 percent for FY2014 to 1307  and a healthier 15.4 percent for FY2015 to 1508. Attributing a 15x multiple to our Sensex EPS (in line with the 5-year average), we arrive at a target of 22,600 for the Sensex, implying an upside of 8.8 percent from the present levels.

Goldman Sachs

Today on November 5,2013 Goldman Sachs has ‘Modi-fied’ and just raised it’s Nifty Target to 6900 end 2014 ,up @ 9 % from current levels of 6300.

Goldman says technology, healthcare, and energy are its top sectors.

Goldman says it likes technology stocks including HCL Technologies and Tech Mahindra, oil and energy scrips such as Reliance Industries, Bharat Petroleum Corp Ltd and Coal India Ltd, banks including Yes Bank and IndusInd Bank and select auto and cement stocks.

The US bank also included some mid-cap infrastructure stocks which are trading at inexpensive valuations such as Adani Power, NHPC Ltd, Materials stocks like Grasim Industries, and industrials stocks like Container Corp of India and Adani Ports and Special Economic Zone.

Nomura

Brokerage house Nomura has raised its Sensex target for the current financial year to 22,000 from 20,000 earlier

Nomura’s top five strategy picks are now ICICI Bank , HCL Technologies , Reliance Industries , Tata Steel and NTPC .

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