Sharekhan has always been popular among investors for the outcome of its research desk. The stocks recommended by Sharekhan consistently outperformed the benchmark indices. After the rollout of GST, the market is experiencing new highs and investors are evaluating the stocks from a new perspective. In this new light, the Sharekhan Value Guide of this month may help investors with insight and research output.
Importance of Investing in Hand-Picked Stocks
We see GST as a radical reformative step that will be beneficial to the Indian economy as a whole and to the equities as an investment class in the medium and long term. But in the very short term, this reform may cause disruption in the smooth running of the business. Hence it is important to invest in hand-picked stocks chosen after a good amount of research. And market running at an all-time high may also try to find some respite before conquering new heights.
Stocks to Consider from Sharekhan Value Guide
Let us discuss some of the stocks mentioned in the Sharekhan Value Guide for this month.
CESC
We expect CESC to give a 6% return with a price target of Rs 1000. P/E for fiscal 17 is 14.6, which is expected to come down to 12 by fiscal 19.
HDFC Bank
HDFC Bank is supposed to reach the price target of Rs 1950 giving a 9% return by fiscal 19. We also expect the P/E to come down from 31.4 to 21.8 by that time.
IndusInd Bank
The newbie in the private bank sector, IndusInd Bank is a fast-growing bank and we expect it to give a return of 7% by fiscal 19 with a price target of Rs 1750. P/E in this fiscal is 34 which is likely to come down to 20.7 by fiscal 19.
ITC
ITC today earns lots of cash from its cigarette business. A leading company in the FMCG sector, we expect ITC to give a 14% return by fiscal 19. The P/E ratio is to come down to 24.8 from 33.9.
Maruti Suzuki
We expect Maruti to reach Rs 8500 from Rs 7708 with an upside of 10%. P/E is currently 31.9 which is to hit 22.9 by fiscal 19.
Zee Entertainment Limited (ZEEL)
Zee is projected to give a 13% return with a price target of Rs 610 and a P/E target of 29 by fiscal 19.
Reliance Industries
Reliance is also expected to give a high return but the price target has not been given yet in Sharekhan Value Guide.
Conclusion
Sharekhan Value Guide of this month has given names of a few stocks for buy and hold for the medium term. However, any investment in the equity market always has some inherent risks with it. Hence, we advise investors to invest and exit at their own risk inequities. Lastly, investors can download the full report of the Sharekhan Value Guide for this month from here.
