|Company||Godrej Agrovet, Godrej Industries, Godrej Properties, Grasim Industries, HDFC Bank, IndusInd Bank, LIC Housing Finance, Maruti Suzuki, Petronet LNG, PGCIL, Power Grid Corp, Reliance Industries, Sundram Fasteners, Supreme Industries, ZEE Entertainment|
|Date of report||May 1, 2017|
|Target Price (Rs)||-|
The Sharekhan Top Picks is celebrating its 100th month since inception with a record of delivering a strong outperformance consistently. While the benchmark indices, the Nifty and Sensex, appreciated in the range of 1-1.5% in April, the Sharekhan Top Picks portfolio gave a handsome return of 7.2% in the same period. Despite the Large Cap bias of the Sharekhan Top Picks folio (65-70% in Large Cap index stocks), it comprehensively outperformed even the CNX Midcap index in April as well as over the longer timeframe of three years and five years. That’s not all, the performance of the Sharekhan Top Picks has been consistent with its track record of continued outperformance for eight consecutive years.
It was an all-round performance by the Sharekhan Top Picks last month. All 12 stocks (except Zee Entertainment), ended up registering positive gains for the month, with four stocks giving close to double-digit returns. This month again, Sharekhan is booking handsome gains in two companies – Bharat Electronics (BEL) and Indian Oil Corporation (IOCL). Both the companies were introduced into the Sharekhan Top Picks in December 2016. In the last five months, IOCL and BEL have appreciated by 44% and 27%, respectively.
To replace them, Sharekhan is introducing Petronet LNG (PLNG) and Power Grid Corporation (Power Grid). PLNG is more of a churn within the Oil & Gas sector. Valuation of PLNG appears relatively favourable to us post the sharp run-up in IOCL. On the other hand, Power Grid is the preferred pick pf Sharekhan in the Power sector, where the policy changes are expected to benefit the power transmission companies.