Thursday, July 25News That Matters

10 stocks which can give good returns in Modi’s Govt


The stock market is betting the new government will focus on sectors such as banking, infrastructure, power, highways and telecom to boost growth.

ET has compiled a list of 10 stocks that could benefit the most from a policy push.
Company CMP YTD Return Reason
ICICI Bank 1469 33% Lower Inflation & fiscal deficit.
Positive Interest rate perspective
L&T 1525 42% well leveraged to take advantage of a demand uptick if the capital expenditure cycle revives. benefi t from value unlocking in the next 1-3 years.
Maruti 2215 25% Strong competitive position, sharp rebound in volumes driven by consumer sentiment improvement and product launches, potential market-share gains and higher margins.
ONGC 417 46% Subsidy rationalisation and higher gas price
SBI 2569 46% The stock currently trades at a discount to the long period average (LPA). At 25% premium to LPA, the upside potential is 48%; it is 121% to its peak valuation.
HPCL 434 83% lower oil price, which will reduce subsidy losses, and diesel price hikes, which will reduce working capital and interest costs
LIC Housing 335 52% steady growth in NII and reversal of provisions on teaser loans. Besides, margin and asset quality improved on a sequential basis
Motherson Sumi 260 42% strong business franchise, increasing content per vehicle, a likely revival in industry demand and rising exports.
Oberoi Realty 225 -4% good play in the realty sector given visible and relatively small land bank, comfortable debt/equity ratio and better governance and proven execution.
Shree Cement 6255 44% market leader in the northern region

ET 20/5/2014


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