Top 5 Stocks For 2012 - Best Stocks To Trade

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HDFC Bank
Consistency in it`s earning growth (grown around 30% YoY in past 38 quarters). It has consistently delivered one of the highest CASA mix in the industry. Its CASA mix remained healthy at 47.3% at the end of Q2FY12, despite the rise in FD rates in last few quarters.

Valuations - P/ABV - 3.1x FY13 .

Infosys Ltd.
We remain positive on the medium - to - long term strategy of the company. Management has reiterated its long term commitment to increase the proportion of non-linear revenues. We concur with the management`s view that this is necessary to ensure profitable growth, while providing more value to customers.

Valuations - PE - 16.8x FY13.


ITC LTD.
ITC has a long track record of high market share in the cigarette business. Coupled with pricing power, this creates an improving profit profile, and high visibility in revenue and earnings growth for the segment.

Large opportunity Size in Other FMCG businesses, Positive Market Share Trends: Tobacco constitutes only 15% of India`s consumption pie; which explains ITC`s entry in the space.

ITC`s products show encouraging trends in market share, creating portents for profitability toward the end of FY-13. Other businesses top-of-the-
class, are self-sustaining: Over a cycle all other businesses of ITC are self-sustaining, and gel strategically with growth objectives of the company.

Valuations - PE - 21.8x FY13 E.

IRB Infrastructure Developers
Experienced player in road BOT segment and likely to benefit from upcoming project awards in road segment Strong order book of Rs 96 bn to drive growth in revenues at a CAGR of 36% between FY11-FY13.

Valuations - PE of 9.4x FY13

Cummins India
Company is well poised to benefit from recovery in the infrastructure spending in the country. Commencement of mega production site at Phaltan is likely to ease out capacity constraints and would add to cash flow generation.

Valuations - PE 14x FY13E

Source : Kotak Securities

One Response so far

  1. certainly market going up but so slow u will not understand. 5/5 crisil rating of a company if sell . Try what happens. U will be compelled to buy.

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