SHARES to Buy in 2017 Recommend by Geojit BNP Paribas
Pidilite Industries Target Rs. 770
Pidilite Industries is a pioneer in consumer & speciality
chemicals in India having a dominant position in the adhesive and sealants
business in India with market share of 70%.
Robust distribution network and continuous focus on
developing new and innovative products will further aid in augmenting market
share and strengthen its brand equity. As a result, Pidilite is a strong play
on recovery in discretionary spending and thus, we recommend buy .
Havells India Target Rs. 388
Havells is a leading player in electrical consumer goods
with key verticals include switchgears, cables & wires, lighting fixtures
and consumer appliances.
Though the current liquidity crunch is expected to impact
the company's consumer durables segment in H2FY17, but given the long-term
benefit of shift from unorganised to organised segment, the future prospects
are positive.
HDFC Bank Target Rs. 1,387
HDFC Bank has a proven track record of higher than
industry growth rate with best in-class asset quality and high profit margins
in the past five years. We expect HDFC Bank to continue outpacing industry
credit growth rate and factor 19% CAGR in advanc es over FY16-18E.
Strong contribution from retail segment (50% of domestic
loan book) adds strength to the loan growth outlook.Higher share of working
capital and retail financing in total loan book reduces risk of any negative
surprise on asset quality front.
Crisil Target Rs. 2,609
Crisil, with a market share of around 60%, enjoys
leadership position in rating business. It also provides research and risk
& advisory services, which has reduced cyclicality in its revenue and
profitability. Crisil has consistently outperformed the industry over the last
10 years and maintained strong RoE of 30%.
Revival in global economy will support growth momentum in
research business and measures from RBI to deepen the corporate bond market
will give boost to the rating business.
Escorts Target Rs. 345
Escorts, the third largest manufacturer of agricultural
tractor is well-placed to benefit from demand recovery as a result of
initiatives such as farm consolidation and farm machanisation, through recent
product launches and strategic decisions to improve distribution channels.
Geojit BNP Paribas
believe, temporary slowdown in the rural demand is more than factored in at the
current prices.
FROM ET
