In India, the equity market has been volatile over the past few months, increasing investor anxiety. However, the recent correction in the market provided buying opportunities in quality stocks, notes ICICI Securities in their latest research report Low Risk Opportuities. Based on their analysis, they have identified 8 stocks that can offer lower risk as well as opportunity to grow capital in the long term – Adani Ports & Special Economic Zone Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., Maruti Suzuki India Ltd., Lupin Ltd., Power Grid Corporation of India Ltd., Reliance Industries Ltd. ICICI Securities Suggests 8 Quality Stocks
1) Maruti Suzuki India Ltd.
Auto companies, especially in India, are growing at an unprecedented rate. While there are many competing car companies and auto stocks to invest in, Maruti Suzuki India Ltd. (NSE:MARUTI) is one of only a few that we’d recommend looking into. Though it’s been on a steady decline for some time now, analysts believe its share price could climb again when demand rises.
2) Godrej Consumer Products Ltd.
Godrej Consumer Products Ltd. is an Indian consumer goods company, incorporated in 1938. The Company operates through segments: Personal Care; Home Care; and Industrial, Agricultural & Healthcare (IAH). The Company’s products include hair care, skin care, oral care, bath and shower products and air fresheners under Godrej brand. It also sells frozen bakery items under Godrej Lila termo-pastry brand.
3) Cummins India Ltd.
Cummins India Ltd. is an Indian subsidiary of Cummins Inc., a global power leader in diesel and natural gas engines and related services, offering products that range from fuel systems, controls, air handling and filtration, to emissions control technologies for commercial vehicle and industrial applications. The Company provides a range of services that include fleet management, parts supply network and repairs for heavy-duty engines. It operates through two segments: aftermarket business segment; and engine manufacturing business segment.
4) Tata Steel Ltd.
The stock has underperformed market by 13.9% in past one year. The company reported flat earnings growth of 0.7% YoY for September quarter compared to 3.2% growth registered in corresponding period last year, driven by a sharp increase in expenditure and depreciation of rupee against US dollar .
5) Larsen & Toubro Ltd.
The company’s current business mix of manufacturing, construction and financial services makes it a relatively stable player in times of market volatility. It is also one of India’s best-run and most profitable companies.
6) Hero MotoCorp Ltd.
The company’s consolidated net profit rose by 12.54% to Rs 2,499.83 crore on 0.72% rise in total income to Rs 70,827.89 crore .
7) Power Grid Corporation of India Limited
Power Grid Corporation of India Limited is engaged in transmission and distribution of electricity, creation and operation of infrastructure for efficient delivery of power, including setting up and maintaining sub-stations, metering, billing and collection. Its operations are organized into five business verticals namely Transmission System Operation (TSO), Transmission Network Development (TND), Transmission Business (TB), Power Generation & Distribution Business (PGDB) and Corporate Support Services.
8) Vedanta Resources Plc
Vedanta Resources Plc, an investment company based in India, aims to invest in and develop mines for precious metals and base metals. The company has iron ore projects in Australia and Mozambique, as well as a joint venture for iron ore exploration with a subsidiary of Rio Tinto Group in Madagascar. It also conducts business relating to natural gas transportation, oil refining and marketing, fertilizers manufacturing, power generation and coal mining. Vedanta Resources Plc is headquartered in London, United Kingdom.