The April-June (Q1) results for India Inc. have been mixed so far, providing little encouragement for the Indian stock market, which is at record-high levels amid growing concerns over valuations. Equity benchmark Nifty 50 almost touched the psychologically significant mark of 25,000 for the first time on Monday, July 29. However, the index failed to sustain gains and retreated due to profit booking.
On Tuesday, July 30, the Nifty 50 moved up nearly half a percent in morning trade, trading 0.4 percent up at 24,932 around 11:05 am.
Experts suggest that retail participation will keep the market buoyant even as market valuations remain a concern. Institutional investors appear to be focusing on high-quality stocks, which is a healthy sign for the market.
Sustained capital flows into mutual funds and retail investor enthusiasm will keep the market resilient. Elevated valuations continue to be a concern, particularly in the broader market. A healthy trend in the market now is that high-quality stocks with good earnings visibility are gaining strength on institutional buying,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Based on the recommendations of several brokerage firms, here is a list of six stocks that can rise 12-17 percent in about one year. Take a look:
Bharat Electronics (BEL)
Brokerage Firm: Motilal Oswal Financial Services
Last Traded Price: ₹321.35
Target Price: ₹360
Upside Potential: 12%
Motilal Oswal noted that BEL’s Q1FY25 results exceeded estimates, driven by better-than-expected revenue and PAT. Revenue growth was supported by a robust order book of ₹76,700 crore and order inflows of ₹4,960 crore. Despite strong execution in Q1, BEL has maintained its guidance on revenues and order inflows. The brokerage firm expects a CAGR of 63 percent in revenue, 57 percent in EBITDA, and 57 percent in PAT during FY24-27, led by order inflow growth of 37 percent and an EBITDA margin of 37.5 percent. With enhanced control over working capital due to improved collections, Motilal Oswal kept its estimates unchanged, forecasting a CAGR of 19 percent in revenue, 19 percent in EBITDA, and 22 percent in PAT over FY24-27. BEL’s strong operating cash flow (OCF) and free cash flow (FCF) and a cash surplus of ₹3,
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