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Top 5 Stocks To Invest-Best Stocks To Invest in 2016

NEW DELHI: Global brokerage firms such as Goldman Sachs and CLSA last week Downgraded Godrej Consumer Products, Yes Bank and Maruti SuzukiBSE -0.83 % in separate notes to their clients. However, they remained positive or maintained buy ratings on ITC and HCL Technologies. The domestic stock market registered double-digit growth in March but the momentum could fizzle out if the Reserve Bank of India (RBI) fails to deliver the much-awaited rate cut. 

Meanwhile, stock-specific actions are likely to continue. (

Here are top five recommendations from various brokerage firms for a minimum investment period of 12 months: 

Godrej Consumer Products: Buy | Target Price Rs 1,600

Global brokerage firm CLSA in a note to clients downgraded Godrej Consumer to outperform from buy but raised its 12-Month Target Price to Rs 1,600 from Rs 1,500 earlier. GCPL entered an agreement to acquire Strength of Nature LLC (SON) last week, a hair care products firm, as part of its wider strategy to boost its international business.

The 'Strength of Nature' has a strong presence in wet hair category for African women. Africa has more than half of the world's fastest growing economies'; however, almost 60 per cent of its revenue base is in the US which creates some worries. The deal size is seen at $250m. 

Yes Bank: Neutral; Target price Rs 900

Global brokerage firm Goldman Sachs downgraded Yes Bank to neutral from buy with a 12-month target price of Rs 900. It also removed the stock from its 'Conviction List'.

However, most of the asset quality concerns are put to rest post-RBI's review which led to no sharp NPL increase. The global investment bank likes the long-term story of Yes Bank on the back of improving retail franchise as well as diversification of loan book. It expects Yes Bank earnings profile to improve but see only 5 per cent upside. The stock is also looking weak on the technical charts. 

Maruti Suzuki India: Outperform; Target price Rs 4,150

"We like Maruti on a 2-3-year view but see modest upside in next 12 months," said the CLSA note. The 19 per cent year-to-date (YTD) drop in Maruti's stock has priced in most of the negatives, it said. 

HCL Technologies: Outperform | Target price Rs 1,150 

The acquisition of Geometric for around $200 million will mark the company's third and largest acquisition in the engineering sector so far. Credit Suisse expects the Geometric deal to add to engineering capabilities and fit well with overall management strategy. The acquisition provides access to Geometric's engineering talent and unique processes. 

ITC: Buy | Target price Rs 370 

ITC on Saturday said it has shut down its cigarette factories until "clarity emerges" on the rules on health warning". The regulation met stiff resistance from industry, CLSA note added. 

The initial plan of Health Ministry was to expand pictorial warnings on the packet to 85 per cent. Until now, cigarette packs carries a warning covering 40 per cent of the front of the pack. The govt has now referred the issue to the Parliamentary Committee. 

This post first appeared on Stock Trading Tips Provider, please read the originial post: here

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Top 5 Stocks To Invest-Best Stocks To Invest in 2016


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