Samvat 2080: RIL, HDFC Bank, L&T among top stock picks for the next 12 months

In anticipation of the special 'Muhurat' trading session marking the beginning of the Hindu calendar year Samvat 2080, financial experts have shared their top stock picks for the next 12 months. Analysts have identified key players in the Nifty that are poised for potential market outperformance.

Satish Menon, Executive Director at Geojit Financial Services, highlighted Reliance Industries Ltd (RIL) and HDFC Bank Ltd as favorable picks for the medium- to long-term. Menon emphasized RIL's positive prospects, citing factors such as Jio Platforms Ltd's expanding subscribers, data traffic, cost efficiencies, nationwide 5G services, and increased gas production. Despite recent underperformance attributed to crude price volatility and increased capital spending, RIL's strategy of organic and inorganic expansion remains robust. Menon suggested a one-year target price of Rs 2,641 for RIL.

Concerning HDFC Bank, Menon expressed optimism about the Net Interest Margin (NIM) bottoming out and anticipated a gradual recovery in the near term. He also noted that the merger with HDFC is likely to be beneficial in the medium to long term, making the current valuation more attractive. Menon provided a target price of Rs 1,964 for HDFC Bank's stock.

Nikhil Kapoor, Senior VP-Research at JM Financial Services Ltd, concurred on the positive outlook for Reliance Industries. Kapoor emphasized the cyclical upturn in the energy sector, which he believes will enhance the long-term growth path of RIL's consumer-oriented business. Kapoor pointed out RIL's superior profit margins compared to rivals and highlighted exclusive hedging possibilities within the O2C business. He set a target price of Rs 2,900 for RIL over the next 12 months.

In addition to RIL, Kapoor also recommended Larsen & Toubro Ltd (L&T) as a long-term pick. He believes L&T is well positioned to benefit from sustained momentum in government-funded domestic infrastructure projects, order inflow from the Middle East, and a potential increase in private capex. Kapoor assigned a target of Rs 3,430 for L&T.

Arpit Jain, Joint Managing Director at Arihant Capital Market, selected a diverse set of top picks for potential market outperformance. These include L&T, UPL Ltd, HDFC Bank, and Kotak Mahindra Bank. Jain highlighted L&T's advantages in the increased infrastructure focus, UPL's resilience in the agriculture sector, and the financial stability represented by HDFC Bank and Kotak Mahindra Bank. These choices, according to Jain, provide a balanced and sector-specific outlook.