Top 10 High Earnings Growth Portfolio Stocks To Buy Now

Focused high earnings growth portfolio by HDFC Securities

HDFC Securities has presented a list of 10 large, midcap and smallcap companies that can potentially double their earnings in three years (FY19 to FY22). These stocks have the right framework in place and have withstood the slowdown well. Their business offers enough scope for growth and market share gains.

They have displayed proven managerial ability to deliver credible consistent performance. These companies have management that have proven history of creating superior business models which are least impacted by adverse cycles or regulations. The franchise and/or competitive advantage enjoyed by them makes us comfortable about the consistency and predictability of earnings growth.

Current valuations of these companies partly reflect the above and the expectations of improved performance. Hence their stock returns from hereon may not necessarily mirror their earnings performance.

However these companies give comfort that unless the macros of India remain dented for some more quarters, they have the ability to bounce back vigorously from short term adverse situations and deliver superior consistent earnings growth.

HDFC Securities has given below the ideal entry bands in which lumpsum or staggered buying may be made. Investors can expect 15%-20% compounded returns in these stocks unless the entire buying is done at cycle highs.

Happy Investing !