Top Diwali Picks for Samvat 2071 – Motilal Oswal

Samvat 2071

Samvat 2070 was a good year for Indian equities with bulls back to the fore. A change of guard at the Centre with a thumping majority for Mr. Modi saw the investors rerate equities. Despite the stability in the Rupee, exporters (IT and Pharma) outperformed; while Metal, PSUs, and Infrastructure true underperformed.

Opportunities:-

Return of the 15-20% Sensex EPS growth period

Lower commodity prices and lower inflation

Concerns:-

Slowdown of the global economy (especially EU & China)

USD as a safe haven and hence FII selling in emerging markets

We believe that earnings growth trajectory is now firmly set for a 20% CAGR over FY14-FY18E and this should lead to higher valuations. Reforms will be a key factor to sustain positive sentiments. We are positive on Telecom, Automobiles and Banking and Finance. Following is the list of our preferred picks for Samvat 2071.

Top Diwali Picks Samvat 2071

Large Cap:-

State Bank of India

CMP – 2584

Target – 3430

Upside – 33%

Bharti Airtel

CMP – 411

Target – 540

Upside – 31%

Hero Motocorp

CMP – 2995

Target – 3580

Upside -20%

 ACC

CMP – 1445

Target – 1840

Upside – 27%

Mid Cap:-

DHFL

CMP – 330

Target – 480

Upside – 45%

Wealth Creating Stock:-

United Spirites

Diwali Picks

Download Top Picks for Diwali Samvat 2071

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