Sharekhan’s Top 11 Stock Portfolio Picks

With an eye on the Union Budget, Sharekhan has made three changes to the Top Picks basket this month. As
part of the churn in the pharmaceutical sector, it has replaced Dishman Pharma with a more stable and front-line company, Sun Pharmaceuticals. Given the government’s focus on reforms in the oil & gas sector, it has introduced Oil India in place of Bharat Heavy Eelectricals, which is struggling to procure fresh orders due to tough conditions in the power generation sector.

Sharekhan has also suggested that it is better to avoid Mahindra and Mahindra (M&M) before the Union Budget as the noises related to a higher tax on diesel vehicles are getting louder. Moreover, the move to reduce diesel under-recoveries by regularly hiking the retail price of diesel would also affect sentiments for M&M due to the company’s dependence on the diesel-powered portfolio of automobiles. United Phosphorous has been introduced in place of M&M due to the latter’s strong performance in Q3FY2013 and attractive valuation.