SharekhanTopPicks_020520151
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Sharekhan Top Picks The Indian stock market continued to lose ground in April and the index returns turned negative for the calendar year 2015. In fact, the Indian equity market has underperformed the other emerging markets in the last few months due to rising concerns over a subdued growth in the earnings of the domestic corporates, a possibility of a delayed revival in economic activity, unseasonal rains and an initial forecast of a weak monsoon for this year. To top it all, the uncertainties related to the minimum alternate tax applicable to the foreign institutional investors retrospectively added to the weakness in the Indian markets. The benchmark indices, Nifty, Sensex and CNX Mid-cap Index, May 02, 2015 Visit us at www.sharekhan.com For Private Circulation only Name CMP* PER (x) RoE (%) Price Upside (Rs) FY14 FY15E FY16E FY14 FY15E FY16E target (Rs)# (%) Apollo Tyres 173 8.4 7.8 7.3 26.4 21.9 19.4 260 50 Ashok Leyland 70 NA 99.4 23.2 NA 4.3 15.1 76 9 Cadila Healthcare 1,697 43.3 35.2 21.3 21.9 21.4 26.7 2,060 21 Gateway Distriparks 354 27.0 20.4 18.8 17.5 21.5 21.7 445 26 HDFC Bank ^ 989 28.0 24.2 19.9 21.3 19.4 18.8 1,260 27 Lupin 1,773 43.2 33.4 27.8 26.5 26.4 24.4 2,300 30 Maruti Suzuki ^ 3,732 40.5 30.4 21.7 14.1 16.6 20.1 4,400 18 PTC India Financials 53 10.4 10.2 7.0 16.1 14.8 19.3 90 69 TCS ^ 2,467 25.2 24.6 20.1 35.2 29.5 29.5 3,000 22 Thomas Cook 231 18.8 41.3 46.3 12.2 13.3 16.3 250 8 Yes Bank ^ 840 18.7 17.5 15.0 25.0 21.3 18.6 930 11 Zee Entertainment 313 33.6 30.1 27.4 20.6 19.8 19.5 400 28 *CMP as on April 30, 2015 # Price target for next 6-12 months ^Actual numbers for FY2015 REGISTRATION DETAILS Regd Add: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai – 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE - INB/INF011073351 ; BSE- CD ; NSE- INB/INF231073330; CD-INE231073330; MCX Stock Exchange - INB/INF261073333 ; CD-INE261073330 ; DP - NSDL-IN-DP-NSDL-233-2003 ; CDSL-IN-DP -CDSL-271-2004 ; PMS-INP000000662 ; Mutual Fund-ARN 20669; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/CORP/0425) ; NCDEX-00132 ; (NCDEX/TCM/CORP/0142) ; NCDEX SPOT-NCDEXSPOT/ 116/CO/11/20626 ; For any complaints email at [email protected]; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Do’s & Don’ts by MCX & NCDEX and the T & C on www.sharekhan.com before investing. Constantly beating Nifty and Sensex (cumulative returns) since April 2009 Absolute returns (Top Picks vs benchmark indices) (%) Sharekhan Sensex Nifty CNX (Top Picks) Mid-cap CY2015 8.7 -1.8 -1.1 0.8 CY2014 63.6 29.9 30.9 55.1 CY2013 12.4 8.5 6.4 -5.6 CY2012 35.1 26.2 29.0 36.0 CY2011 -20.5 -21.2 -21.7 -25.0 CY2010 16.8 11.5 12.9 11.5 CY2009 116.1 76.1 72.0 114.0 Since Inception 399.1 169.2 168.5 250.3 (Jan 2009) Consistent outperformance (absolute returns; not annualised) (%) 1 month 3 months 6 months 1 year 3 years 5 years Top Picks -2.8 1.7 14.9 61.3 151.2 124.6 Sensex -3.4 -7.4 -3.2 20.3 60.6 60.1 Nifty -3.6 -7.1 -1.6 21.8 61.8 62.4 CNX Mid-cap -2.4 -3.3 7.2 43.8 77.6 64.7 closed marginally down by 1% to 2% each for the first four months of CY2015 whereas Sharekhan’s Top Picks basket gave a decent positive return of 8.7% (gross of brokerage) in the same period. In April also, the Top Picks basket performed relatively better, declining by 2.8% as against a drop of 3.4% in the Sensex and a fall of 3.6% in the Nifty. This month, we are not making any changes in the Top Picks folio. We believe that the Indian market could continue to hover around the existing range for the next few weeks, if not months, and the portfolio is largely aligned for the anticipated market condition. Please note the returns are based on the assumption that at the beginning of each month an equal amount was invested in each stock of the Top Picks basket
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Trading, Yop Picks, Research in Equities.
