DLF , HDFC Bank, L&T, Hero, Lupin among 17 top picks by Sharekhan for year 2024

DLF , HDFC Bank , IndusInd Bank , Larsen & Toubro , Hero Motocorp, Lupin , Artemis Medicare Services , Bank of India , Kirloskar Oil Engines , Radico Khaitan , Wonderla Holidays , Subros  CESC, Hindware Home Innovation , Sterling Tools , Strides Pharma , Gujarat Fluorochemicals , are amongst 17 top picks by Sharekhan for 2024. While first 12 amongst high Conviction picks are “Buy and Hold Stocks”, the later 5 are Dark horses that have potential re-rating triggers that could play out in 2024.

As per Sharekhan its time to readjust the portfolio. In their Portfolio Strategy for 2024, analysts at Sharekhan highlighted that they prefer increasing exposure to large-caps (over smallcap micro-caps) and Value Stocks at reasonable prices away from Growth Stocks trading at steep valuations. In terms of sectors, they see better times for pharma, two-wheeler auto and IT Services spaces in addition to our core multi-year investment themes of Capex (Engineering/Infra/real estate), Capital (Banks/Financial Services) and Consumer.

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For the markets as per Sharekhan, Year 2024 Looks promising, but valuation are not cheap anymore: New Year 2024 appears promising with the markets hitting a new high and economic growth is healthy especially in the context of a slowdown globally, said Sharekhan analysts. Valuations look stretched in certain pockets, they added, as reflected in the micro-cap rally and the euphoria in primary issues including the SME segment. The Nifty trades at 23.4x the trailing 12-month price-earning (PE), which is not cheap but isn’t expensive either, especially given the expected earnings growth of 12-14% CAGR over the next two years.

However they say that Investors need not worry as India’s multi-year growth story is intact!.

In the Real Estate sector, a revival in property cycle to sustain, driven by a time correction in prices, better affordability, reasonable interest rates and need to have bigger house. In the Infrastructire space, Budgetary allocation for capex has been going up substantially for last couple of years and supporting various industries. Amongst The Corporates many large corporates have set out a capacity expansion (including core sectors). Banks in better health now and capitalised to support credit growth in the economy.

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Accordingly, they have shortlisted high conviction investment ideas for investors. They have identified a few dark horses that have potential re-rating triggers that could play out in 2024. The dark horses include CESC, Hindware Home Innovation , Sterling Tools , Strides Pharma , Gujarat Fluorochemicals

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