3 stocks that will make the perfect Raksha Bandhan gift for your sister

Are you wondering what to gift your sister this Raksha Bandhan? As a brother, one of the most useful presents you can give your sister is a financially secure future. This Raksha Bandhan, consider gifting stocks as a meaningful and practical present.

If your sister is interested in the equity market or wants to delve into investing, stocks can be an exciting gift. By gifting her shares, you provide her with ownership in a company, allowing her to benefit from its growth and profits. Choose stocks from well-established companies with a strong track record and growth potential. Before selecting, consider her risk tolerance, investment horizon, and financial goals. Ultimately, the best gift you can offer is long-lasting financial stability.

Master Capital Services has identified three stocks that are expected to deliver a 15-20 percent return, making them excellent choices for a thoughtful Raksha Bandhan gift.

1. Larsen & Toubro

Larsen & Toubro Ltd specializes in offering engineering, procurement, and construction (EPC) solutions across critical sectors, including Infrastructure, Hydrocarbon, Power, Process Industries, Defence, and Information Technology, both domestically and internationally. The company has demonstrated consistent revenue growth and profitability over recent years, maintaining stability with a return on capital employed (ROCE) and return on equity (ROE) of around 19 percent and 15 percent, respectively, mentioned the brokerage. Additionally, L&T's substantial global presence and geographic diversification allow it to capitalize on international opportunities and mitigate reliance on the domestic market, it said. The stock has already gained 32 percent in the last 1 year.

2. HCL Technologies

HCL Technologies is a leading IT giant in India, ranked among the top five Indian IT services companies by revenue. The company provides a broad range of IT and business services, including engineering, R&D, and software products, with operations in 60 countries. HCL specializes in digital, engineering, cloud, and AI solutions across various sectors such as Financial Services, Manufacturing, Life Sciences, Retail, Technology, and Telecom.

According to the brokerage, HCL Tech has constantly demonstrated strong financial performance with consistent revenue growth, healthy profit margins, and effective cost management. The company has been investing heavily in digital technologies, including cloud computing, artificial intelligence (AI), and automation. This focus aligns with current industry trends and positions the company to capture growth in the high-demand areas, it noted. The IT stock had advanced over 38 percent in the last 1 year.

3. TATA Motors

Tata Motors Limited is a leading manufacturer of automobiles and one of the largest OEM in India offering a wide range of passenger and commercial vehicles. Tata Motors owns the prestigious brands Jaguar and Land Rover (JLR), establishing itself as a dominant player in the global automotive market. The company's financials reflect a net profit margin of 7.10 percent, which has been steadily improving alongside its revenue growth.

Tata Motors benefits from a resilient supply chain and strong manufacturing capabilities, allowing it to effectively adapt to market changes and manage disruptions. Its early entry into the electric vehicle (EV) segment has positioned Tata Motors ahead of many competitors, and it currently holds the largest market share in India's EV segment. The company's emphasis on innovation, sustainability, and a robust product lineup further underscores its potential for future growth and market opportunities, highlighted the brokerage. The Tata Group stock has already rallied over 72 percent in the last 1 year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.