The Indian stock market has seen some correction in August so far. Sensex is down about 1 per cent this month while Nifty 50 has fallen about half a per cent. Various brokerage firms have identified largecap stocks that could deliver strong double-digit returns over the next year.
1. Reliance Industries: JM Financial believes Reliance Industries has industry-leading capabilities across businesses to drive robust 16-17 per cent EPS CAGR over the next three to five years. JM Financial said its key expectations from the August 29 AGM revolve around the timeline for the potential listing of digital and retail businesses and an update on the progress of various new energy projects.
2. Zomato: Zomato’s board approved the acquisition of Paytm’s movie and event ticketing business which would help the company to expand its presence in the entertainment ticketing category and compete with Bookmyshow. JM Financial said, “Management’s strong demonstrated execution in the past and absence of meaningful, organised competition (barring Bookmyshow) makes us believe Going-out could be the next big success out of Zomato.”
3. Jindal Saw: SBI Securities said that Jindal Saw “has a healthy product portfolio with presence across major segments of the pipe industry such as LSAW pipes, HSAW pipes, DI pipes, seamless pipes & tubes, anti-corrosion coated pipes, hot-pulled induction bends, etc. The current order book for iron and steel pipes and pellets stands at $ 1.65 billion. It includes nearly 32 per cent of orders from global markets, which reflects good opportunities for exports. The order book gives a visibility of approximately three to four quarters.”
4. Mphasis: Nuvama said, “We see Mphasis at an inflexion point – where the factors that led to its underperformance over the last two years – are now likely to reverse, leading to outperformance. We are upgrading FY25E and FY26E EPS by 2 per cent and 4 per cent, respectively, and target valuation to 30 times Sep-26 PE (from 27 times) – on better growth visibility; upgrade to ‘buy’ with a target price of ₹3,500.”
