Which are the best stocks for 2017? How much return it will give? Well, it is a very difficult question to answer. However, on the occasion of Diwali 2016 stock market expert from brokerage houses have made a prediction about best stocks for 2017. Last year also they have recommended few stocks for the investment and that stocks had given very good returns to the investors. Before taking look at best stocks let’s check the performance of the stock market in Samvat 2072.
Samvat 2072 was a good year for the stock market investors. After touching 2 years low on Union Budget Day 2016-17, BSE Sensex has bounced back significantly. BSE Sensex was able to post a gain of 8.9% since last Diwali. Nifty 50 is up by 12% and Midcap and Small-cap indices have posted a gain of 27% and 22% respectively. The reasons for positive momentum and growth in the stock market are given below.
- The launch of make in India campaign, smart city project and startup India campaign.
- Strong FII inflows of Rs46,000 Cr YTD FY 17.
- NODs for important bills GST, Real Estate Regulatory Bill, land bill etc.
- Normal monsoon after two years of drought.
- Implementation of 7th pays commission.
All these factors have impacted market significantly. Going forward in the year 2017, the Indian equity market will continue to inch higher though the global market uncertainty will be a hurdle for the Indian market, but considering the strong growth of Indian economy FII flow is likely to continue. Best stocks to buy for 2017 recommended by all brokerage house are given below.
Top 15 Best Stocks to buy for 2017
1. RBL Bank
RBL Bank Limited is a scheduled commercial bank with 197 branches and 362 ATMs. RBL Bank offers fixed deposit with highest interest rates. IIFL is bullish on RBL Bank and they recommend to invest in RBL bank with a target price of Rs.426.
2. PTC India Financial Services
PTC India is NBFC classified as “Infrastructure Finance Company (IFC)”. They provide funds to project related to infrastructure. IIFL recommends investing in PTC India for 2017 with a target price of Rs.48.
3. Heidelberg Cement India Ltd
Heidelberg Cement is one of the largest cement producers of the south. Satisfactory monsoon and capacity enhancement will give benefit to Heidelberg Cement. It is recommended to purchase Heidelberg stock with target price of Rs.175.
DHFL is next best stock for 2017. DHFL is home loan company. This company has reported a strong performance and healthy business momentum recently. It is advisable to invest in DHFL with a target price of Rs.400.
Arvind is a textile company. Arvind is well positioned in textile marketplace. Arvind also holds multiple global brands. It is expected that Arvind will perform well and you can invest in a stock with target price of Rs.495.
6. KEC International
KEC is India’s second largest manufacturer of electric power transmission towers and one of the largest Power Transmission Engineering, Procurement & Construction companies in the world. The company has a strong order book of Rs.10,400 Cr. IIFL recommend to invest in KEC international for 2017 with a target price of Rs.155.
7. Granules India
Granules India is leading pharmaceutical company. The company revenue is expected to grow @15% in FY16-FY18E. You can invest in Granules India with a target price of Rs.151.
8. Aurobindo Pharma
Aurobindo Pharma is second pharma stock recommended for 2017. Aurobindo Pharma is constantly evolving new products. In 2017 company is planning to launch 27 different products and expected to generate massive cash flows. We recommend BUY on the stock with one-year target price of Rs.998.
9. Tata Chemicals
Tata Chemical is next stock pick for 2017. The company is working aggressively on the cost cutting. The company is also working towards asset monetization. It is recommended to invest in the stock with target price of Rs.684.
10. Navneet Education
Navneet Education is leading publication company in the education sector. The company will be benefited from the implementation of syllabus change in FY17E in Maharashtra and Gujarat state. The company is also dealing in animated content product “TOPCLASS” this product is used effectively in E-learning segment. You can buy this stock for 2017 with a target price of Rs.130.
11. SML Isuzu
SML Isuzu Limited (SMLI) is engaged in the business of manufacturing Light commercial vehicles. The company manufactures buses, trucks and other customized vehicles like Ambulances, Prison van, Refrigerated van, etc. The company is working towards capacity expansion in 2017. The company has also reported robust performance with good volume growth. Religare recommends investing in the stock with target price of Rs.1560.
12. TV Today Network
TV Today Network Ltd is leading media group. The report says that the company will get benefited from ongoing digitisation, driving higher subscription revenue as TVTODAY’s all 4 channels are on paid subscription. Growth in advertising spend will be another revenue driver for the company.
Talwalkars is s the largest fitness chain in India and Sri Lanka, providing diverse service offerings. India’s fitness market is projected to grow by 23% by FY19. Talwalkars is recommended the stock for 2017. You can invest the stock with target price of Rs.328.
14. Jamna Auto
Jamna Auto is a market leader in providing automotive suspension solutions to commercial vehicles in India. The company has reported substantial improvement in its profitability with better working capital management, reduction in debt, reduction in breakeven levels and lower fuel costs. We expect it to further reduce its breakeven levels and continue to operate debt free in the coming period. The target price for the stock is Rs.272.
15. Cigniti Technologies
Cigniti Technologies Ltd. is the second largest “Independent Quality Testing” provider in the software industry. The report indicates that company is well placed to benefit from the growth of quality testing services industry, which is growing at CAGR of 7%, higher than IT industry growth rate.
Do you think above stocks will be next multi-bagger stocks for 2017?
Do you hold these stocks?
Do share your recommendation in the comment section.