Muhurat trading session for Samvat 2063 is a fortnight away, and the BSE Sensex has already gained 56 per cent since Samvat 2062. The new year, experts insist, will be buoyant. Business Today carried an opinion poll among five experts to identify 10 stocks that will earn returns in excess of 25-50 per cent over the next 12 months.
The Top 10
Crompton Greaves. Adjusted Stock Price: (September 27, 2006) Rs 249.55; Face Value: Rs 2 per share. The firm operates in three segments-industrial, consumer and transformer. In the domestic market all the three segments are expected to do well in the coming year. "Apart from the domestic market, the global expansion will reap benefits for the firm," says Khemani.
Mphasis BFL. Price: Rs 184.60; Face Value: Rs 10. Following the acquisition by EDs, the company has become a global player and is all set to move from the mid-cap league to the large-cap league. "The stock is all set for a re-rating," says Mudlapur. "And with eds wanting to acquire 100 per cent in the company, the stock will always be on an upswing."
ITC. Price: Rs 185.65; Face Value: Re 1. Cigarettes apart, experts are betting on the non-core businesses in the hotel, paper, consumer goods and retail spaces (including e-chaupal). Kejriwal expects the company's stock price in the next 12 months to surge by between 25 per cent and 40 per cent.
Larsen & Toubro. Price: Rs 2,589.20; Face Value: Rs 2. The company will benefit from the infrastructure boom.
Tata Steel. Price: Rs 515.65; Face Value: Rs 10. "From 5 million tonnes now, the company's capacity will zoom to 27 million in the next 6-7 years and will help increase shareholders value," says Kejriwal.
LG Balakrishnan. Price: Rs 27.95; Face Value: Re 1. LG Balakrishnan is a leading supplier of transmission chains catering to both the automobile and industrial segment. Being a leader in automotive transmission, it occupies a significant share in OEM supplies (it supplies to Bajaj Auto, Hero Honda and TVS Motors) as well as the replacement market. Also, its recent foray into metal forming and forging will lead to better revenue mix and margins going ahead.
Bartronics. Price: Rs 67.25; Face Value: Rs 10. Bartronics is a Hyderabad-based automatic identification and data capture solution provider. The company is the market leader in the domestic market. "It is one of the best retail proxy plays available," says Baliga.
Gateway Distriparks. Price: Rs 156.30; Face Value: Rs 10. Gateway Distriparks Ltd. (GDL) is a multi-location, port-related container freight station-cum-logistics company and stands to benefit significantly from the infrastructure and manufacturing boom.
Reliance Industries. Price: Rs 1,175.05; Face Value: Rs 10. "We expect the company to grow by 25-30 per cent on a year-on-year basis," says Baliga. "The benefit will be reaped following its steady growth in the refining business as well as due to its venture into retail."
Infosys Technologies. Price: Rs 1,835.50; Face Value: Rs 5. "Rising volume growth, consolidation and direct competition with global biggies will drive the growth in the company," says Sisodia.