As 2017 brings with it much domestic and global uncertainty, let’s put the spotlight on a few stocks that analysts are pinning their faith on in the new year.
HDFC Bank Ltd., Aurobindo Pharma Ltd., Power Grid Corporation of India Ltd., ITC Ltd., and IndusInd Bank Ltd. are five Nifty 50 companies that have the most number of 'buy' ratings compared to their respective 'hold' and 'sell' ratings, according to data available on Bloomberg.
Let’s take a closer look:
First on the list is HDFC Bank, where 95 percent of the 55 analysts tracked by Bloomberg have a ‘buy’ call on the stock, the highest of all Nifty 50 companies. The consensus target price of Rs 1,444 suggests an upside potential of 21 percent in the next 12 months.
Aurobindo Pharma comes in second, with 92 percent of analysts assigning a ‘buy’ rating. The consensus price target of Rs 954 indicates 42 percent return potential from the current market price.
Government-owned Power Grid comes in third, with 90 percent ‘buy’ ratings and zero ‘sell’ ratings. The consensus price target of Rs 205 implies that the stock could deliver returns of up to 10 percent.
Cigarette manufacturer ITC is on the list with 88 percent analysts assigning a ‘buy’ rating to the stock. The target price of Rs 280 translates to a return potential of 15 percent.
Only 84 percent of analysts have a ‘buy’ rating on IndusInd Bank, but the consensus target price of Rs 1,362 implies a return potential of 24 percent from its current price.
That’s our chart of the day.
An earlier version of this story had a round-off error in the chart.