Good Indian Stocks to Invest for Mid Term - May 28

Posted by admin in Companies, Mid Term Picks on May 27th, 2010 | no responses

Given below are a set of Indian Stocks that could give good returns over the next 6 months to 1 year. Broking house AK Stockmart has suggested these stocks for mid-term picks of the day. (Source: Economic Times)

Pfizer Ltd

RECOMMENDATION: Buy
Market Price: Rs 1,034
Target Price: Rs 1,215
We expect Pfizer to log a 14-15% growth (CAGR) in topline and bottomline over the CY2009-2011E period. A debt-free cash rich status with decent dividend payouts makes it a perfect investment candidate. At CMP of Rs 1,040, the scrip trades at 18.1x & 15.6x our CY10E & CY11E earnings estimate of Rs 56.7 & Rs 65.7 per share, respectively.

Sterlite Technologies Ltd

RECOMMENDATION: Buy
Market Price: Rs 99
Target Price: Rs 115
The strong growth for Sterlite’s telecom and power businesses and its expertise facilities for it to grow with the industry. We expect the company to attain a rapid growth in revenues and profits in the next 3-5 years. At the current CMP of Rs 97, the stock trades at 11.6X and 11.0X of FY11E and FY12E earnings. In view of improved business outlook and guidance by the management, we revise our EPS estimates upwards for FY11E to Rs 8.4 and Rs 8.8 for FY12E.

YES Bank Ltd

RECOMMENDATION: Buy
Market Price: Rs 266
Target Price: Rs 320
YES Bank is well poised to grow rapidly over the next three years, thanks to strong fee income driving higher-than-industry RoA of 1.5% and ROE 18%. Rising CASA contribution, driven by a rapid branch expansion, will provide stability to NIMs. At CMP, YES Bank is trading at 2.4x FY BV and 14x FY11 EPS. Given its superior return ratios, superlative growth, clean balance sheet, and competent management, we believe YES Bank’s premium valuations are justified.

Bank of Baroda

RECOMMENDATION: Buy
Market Price: Rs 712
Target Price: Rs 739
BoB is trading at 1.5x FY 11 BV and 7.6 FY11 EPS. With strong fundamentals in place, BoB is well placed to benefit from an upturn in credit cycle. With RoE of 20% plus, RoA of over 1%, NIM of 2.6%, strong global business, low risk loan book and clean asset quality, the bank’s valuations is quite reasonable.

Suzlon Energy Ltd

RECOMMENDATION: Buy
Market Price: Rs 58
Target Price: Rs 74
The international scenario for wind energy is slowly improving after the two-year slump, which negatively affected all the WTG manufacturers across the globe. The company has successfully managed to restructure its entire debt; it has already received around 80% approval of the proposed amount, which will provide enough breadth for the company to concentrate on core business and increase its revenue and profitability, which will result in hassle-free debt servicing.