As India celebrates its 78th independence day on Thursday, it is that time of the year when one can reflect on his investments and if that will lead to his financial independence. For stock market enthusiasts, ETMarkets brings eight stocks recommended by various experts that have potential to earn decent returns over a 1-year period.
Since last independence, the headline index Nifty has gained by 4,704 points or 24%. On August 14, 2023, Nifty ended at 19,434.55 and on August 13, 2024, the 50-share index closed at 24,139.
Expert, Amit Goel, Co-Founder & Chief Global Strategist, Pace 360 said that Independence Day is an ideal time to reflect on the nation’s progress and potential and investing in stocks which are aligned with India’s growth story which can be a rewarding strategy.
He calls it prudent for investors to follow a dynamic asset allocation strategy across sectors. “The Indian markets are currently too expensive for building long-term investments. Investors should reduce exposure to highly leveraged stocks and focus on stocks with strong fundamentals,” Goel said.
Investors should consider fairly valued sectors in the near term in the form of quality ETFs such as CPSE, Nifty Next 50 and Bank that could provide exposure to the India growth story in a diversified manner, he added.
Chowdhury sees pharmaceutical play Aarti Drugs to post a gradual improvement in revenue and operating performance on the back of being an established bulk drug player, having a diversified client mix and the largest domestic and global manufacturer for most of its key products, newer products, ramp-up in specialty products and formulation business and focus on the new export market.
NOCIL, a dominant player in the Indian rubber chemicals market with a 45-50% domestic share, is focusing on expanding exports and innovating into new product verticals, which are beginning to show positive results through an optimized product mix. The commercial vehicle replacement market is also expected to benefit from renewed infrastructure initiatives. NOCIL is expected to maintain its debt-free status and enhance free cash flow generation due to robust operational profits and no debt repayment obligations.
Bathini picks four stocks – two in the defense sector, one a PSU bank and one is from industrial. The stocks are Hindustan Aeronautics Limited (HAL), Larsen & Toubro (L&T), State Bank of India (SBI) and Bharat Dynamics. He expects 15-20% returns in each stock from current levels.
The article originally appeared on The Economic Times.