Sharekhan Top Picks (December 2014)

This month, we are making two changes to our folio of stocks. First, we are taking healthy profits of close to 18% in Maruti Suzuki India (since there is a limited upside from here, given our price target of Rs3,500) and replacing it with Ashok Leyland (which is our preferred play on the demand recovery in the domestic commercial vehicle space). Second, we are also booking profits in Federal Bank (which has risen by 20% in four months) and replacing it with PTC India Financial Services, which is our best pick in the non-banking financial space. So the changes are essentially related to a churn in the auto and financial sectors. We have a positive view on the auto and banking & financial sectors as these shall be the early gainers of a recovery in the economy.

Download Sharekhan Top Picks Dec 14