Key stock recommendations include Reliance Industries, Zomato, Jindal Saw, Aditya Birla Capital, and Mphasis, with potential double-digit returns over the next year.
Stocks to buy for long term: The Indian stock market benchmarks, the Sensex and the Nifty 50 have seen some correction in August so far as the market lacks fresh triggers while valuation remains high.
The Sensex is down about 1 per cent this month, while the Nifty 50 has retreated about half a per cent. Market experts believe the market’s medium—to long-term prospects remain attractive due to India’s solid economic growth outlook, strong participation of retail investors, and expectations of the start of the rate cut cycle.
It is time to be prudent in picking stocks for investments. Mint compiled recommendations from various brokerage firms to identify five large-cap stocks that could deliver strong double-digit returns over the next year. Take a look:
JM Financial believes peak capex/net debt is behind, and RIL has industry-leading capabilities across businesses to drive robust 16-17 per cent EPS CAGR over the next three to five years.
JM Financial said its key expectations from the August 29 AGM revolve around the timeline for the potential listing of digital and retail businesses and an update on the progress of various new energy projects. The FY24 annual report states that the company will continue to monitor financial markets to seize suitable opportunities for capital raising to support its growth plans.
Zomato | Previous close: ₹257.80 | Target price: ₹300 | Upside potential: 16%
Zomato’s board has approved the acquisition of Paytm’s movie and event ticketing business. This would help Zomato expand its presence in the entertainment ticketing category and become the second largest entertainment ticketing platform in the country, behind only Bookmyshow.
“Management’s strong demonstrated execution in the past and absence of meaningful, organised competition (barring Bookmyshow) makes us believe Going-out could be the next big success out of Zomato,” JM Financial said.
Jindal Saw | Previous close: ₹687.75 | Target price: ₹784.3 | Upside potential: 14%
According to SBI Securities, Jindal Saw’s well-diversified product portfolio, healthy order book, focus on value-added products and robust operating performance in 1QFY25 make it a suitable candidate for buying at this juncture.
“The company has a healthy product portfolio with presence across major segments of the pipe industry such as LSAW pipes, HSAW pipes, DI pipes, seamless pipes & tubes, anti-corrosion coated pipes, hot-pulled induction bends, etc.,” said SBI Securities.
“The current order book for iron and steel pipes and pellets stands at $ 1.65 billion. It includes nearly 32 per cent of orders from global markets, which reflects good opportunities for exports. The order book gives a visibility of approximately three to four quarters,” the brokerage firm added.
Aditya Birla Capital | Previous close: ₹223.20 | Target price: ₹280 | Upside potential: 25%
The brokerage firm pointed out that Aditya Birla Finance is one of India’s top four non-banking financial companies (NBFCs). The management remains optimistic and has guided the company to double its FY23 portfolio by FY26E. The growth is expected to be driven by a secured MSME business and a rising share of direct-sourcing businesses.
SBI Securities expects Aditya Birla Capital’s loan book to grow at 30 per cent in FY25E and FY26E.
Mphasis | Previous close: ₹3,065.15 | Target price: ₹3,500 | Upside potential: 14%
“We see Mphasis at an inflexion point – where the factors that led to its underperformance over the last two years – are now likely to reverse, leading to outperformance. We are upgrading FY25E and FY26E EPS by 2 per cent and 4 per cent, respectively, and target valuation to 30 times Sep-26 PE (from 27 times) – on better growth visibility; upgrade to ‘buy’ with a target price of ₹3,500,” Nuvama said.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not GiftCityNifty. We advise investors to consult certified experts before making any investment decisions.