Diwali Picks 2015

Diwali 2015 picks from various brokerage houses - taken from moneycontrol.com

#1 Infosys--  Motilal Oswal recommends buying the IT major with a target price of Rs 1250 per share. It says given the good performance in the last 2 quarters and expectations of a gradual improvement in performance, valuations should see an uptick. The 5.9 percent sequential growth was an industry leading growth. Prabhusdas Lilladher also has buy rating on the stock with a target of Rs 1440 per share. It expects Infosys to return to industry revenue growth by end FY16 and grow ahead of industry in FY17. 

#2 HDFC Bank--  Motilal Oswal maintains buy with a target price of Rs 1350 per share. Despite the recent capital raising, return on equity (RoE) is expected to be 19-20 percent in FY17-18. “Comfort on earnings remains high with 20 percent as the new normal in terms of profit growth, “ it adds. HDFC Bank is one of the top-picks of Prabhudas Lilladher maintaining bUy rating with a target price of Rs 1200 per share.

 #3 BPCL--  Motilal has a buy rating with a target of Rs 1178 per share. It expects earnings boost in the near term from lower interest cost led by lower working capital due to diesel deregulation and oil price decline and higher auto fuel marketing margins. It has raised our valuation multiple as expects marketing business to command higher valuations as pricing freedom will improve profitability.

 #4 State Bank of India--  Prabudas Lilladher retains buy rating with target price of Rs 350 per share. It says that the PSU has shown some early signs of stabilization in asset quality as fresh slippages have trended lower while management sounded optimistic about revival in capex cycle.

 #5 Tata Motors -- Tata Motors recommends buy rating with a price target of Rs 518 per share. It believes that JLR faces a short-term negative outlook due to weakness in China. However, with its strong product portfolio, JLR is in a good position to counter the slowdown there as well as increase its sale in other geographies, thereby resulting in a positive outlook from a medium‐to-long-term perspective.