IIFL's 12 large cap picks with 35-34% upside potential
Source: IRIS | 27 Aug, 2014, 06.15PM
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India Infoline Research (IIFL) believes the long term upward trajectory for Indian equities is intact. 'A consolidation around 8,000 levels on the Nifty is the general expectation, given 11% run up since election outcome and valuations (P/E) touching 15x FY16 earnings but our research team sees significant upside not just in select mid-caps but also a number of large caps.'
Indian equities are significantly better placed than most emerging markets today. India’s equity market capitalization is higher than the likes of Mexico, Brazil, Russia and South Africa with a wide range of large-sized companies across industries to keep FIIs excited, it said.
IIFL has identified 12 bluechips, which according to them are extremely attractive at current levels of the market. These 12 large caps can potentially deliver 35-45% returns over a period of two years, it said. The same are as follows: | Company | CMP (Rs) | 24m Target (Rs) | Upside (%) | | | | | Maruti | 2,772 | 3,800 | 37.1 | | | Motherson Sumi | 357 | 500 | 40 | | | L&T | 1,506 | 2,120 | 40.7 | | | ITC | 352 | 486 | 38.1 | | | HCL Tech | 1,597 | 2,202 | 37.9 | | | Hindustan Zinc | 165 | 230 | 39.4 | | | Tata Steel | 525 | 728 | 38.7 | | | Reliance Ind | 993 | 1,400 | 41 | | | Lupin | 1,288 | 1,750 | 36 | | | Powergrid | 131 | 187 | 42.7 | | | ICICI Bank | 1,510 | 2,125 | 40.7 | | | IndusInd Bank | 562 | 811 | 44.2 | | | Company | FY14-17E PAT CAGR (%) | FY17E | | P/E (x) | RoE (%) | EV/EBIDTA | | Maruti | 27.6 | 14.5 | 18.9 | 7.7 | | Motherson Sumi | 31.7 | 14.5 | 40.4 | 5.8 | | L&T | 9.1 | 19.6 | 16.3 | 14.7 | | ITC | 16.3 | 19.9 | 37.3 | 14 | | HCL Tech | 14.3 | 11.7 | 27.5 | 7.1 | | Hindustan Zinc | 10.6 | 7.5 | 17.6 | 2.9 | | Tata Steel | 31.7 | 6.2 | 15.3 | 4.8 | | Reliance Ind | 26.6 | 7.2 | 16.9 | 5.8 | | Lupin | 19.1 | 18.6 | 25.5 | 10.6 | | Powergrid | 18 | 9.3 | 15.9 | 8.2 | | Bank | FY14-17E PAT CAGR (%) | FY17E | | P/ABV (x) | ROA (%) | ROE (%) | | ICICI Bank | 17 | 1.8 | 1.7 | 16.5 | | IndusInd Bank | 29.1 | 2 | 2 | 21.7 | Source: IIFL Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
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