Which stock to buy now? Analysts pick these 20 shares for next financial year FY2023
As the domestic equity market witnesses a correction, analysts on Dalal Street remain bullish on select stocks from various sectors. The market has seen a 1.6% drop in the benchmark equity index, BSE Sensex since the beginning of the financial year 2023. However, industry insiders predict the next 12 months will be better for stocks than the previous 12 months.
The domestic equity market is expected to deliver a double-digit return in FY24. Divam Sharma, co-founder of Green Portfolio PMS and small case manager, anticipates a 15% rally on Sensex and Nifty by the end of FY24. Industries that are expected to perform well in the index include IT, pharmaceuticals, FMCG, and Oil and Gas. Sharma also identified specific companies that have taken a significant beating, leading to mouth-watering valuations despite intact fundamentals. Among these companies are Piramal Pharma, Titagarh Wagons, Valiant Organics, and SP Apparels.
Broader markets underperformed large caps in FY23, with the BSE Midcap index plunging over 2% and the BSE Smallcap index dropping more than 6% during the same period. However, Sharma expects the broader market to deliver higher returns in FY24 as the valuations are at a significant discount.
Anand Shah, Head-PMS, and AIF Investments, ICICI Prudential AMC, stated that the next 12 months would be better than the previous 12 months. As China's growth returns, energy prices in Europe have softened, and fears of a European recession have abated. If a recession were to occur in the US, the Fed has ample room to help the economy. Any slowdown in the US will benefit India through lower commodity prices and interest rates. Markets are expected to be volatile and uncertain in the first half of FY24 before stabilizing, and investing in a staggered way is advised.
Foreign institutional investors have offloaded shares worth almost Rs 40,000 crore in FY23 till March 29. However, heavy buying by domestic institutional investors has capped the downside, with a net investment of over Rs 2.5 lakh crore during the same period.
Santosh Meena, Head of Research, Swastika Investmart, predicts that if there are no major unexpected events, then both Nifty and Sensex could gradually recover and potentially revisit all-time highs of around 19,000 and 64,000, respectively. In the second half of FY24, if the markets gain significant momentum, there is a possibility of the levels crossing 21,000 and 71,000 for Nifty and Sensex, respectively.
Analysts have identified several large-cap and midcap companies that have the potential to produce significant gains in FY24. Larsen and Turbo (L&T), State Bank of India (SBI), and Mahindra & Mahindra (M&M) are among the top picks from the large-cap basket. Federal Bank and Thermax from the midcap category are also expected to do well. L&T and SBI have seen gains of 20% and 3%, respectively, in FY23 till March 28. In contrast, Federal Bank and Thermax have rallied 29% and 14%, respectively, during the same period. Smallcase manager and founder of Wright Research, Sonam Srivastava, has recommended Coal India, Schaeffler India, Policybazaar, L&T Technology Services, and Poly Medic.
Analysts' Top 20 Stock Picks for FY2024
Here are the top 20 stock picks of analysts for FY2024:
• Apple Inc. (AAPL)
• Amazon.com Inc. (AMZN)
• Alphabet Inc. (GOOGLE)
• Microsoft Corporation (MSFT)
• Facebook Inc. (FB)
• Tesla Inc. (TSLA)
• Visa Inc. (V)
• Mastercard Incorporated (MA)
• Nvidia Corporation (NVDA)
• Salesforce.com Inc. (CRM)
• Adobe Inc. (ADBE)
• JPMorgan Chase & Co. (JPM)
• Procter & Gamble Co. (PG)
• Johnson & Johnson (JNJ)
• McDonald's Corporation (MCD)
• Walt Disney Co. (DIS)
• Pfizer Inc. (PFE)
• Merck & Co. Inc. (MRK)
• UnitedHealth Group Incorporated (UNH)
• The Home Depot Inc. (HD)
These stock picks are based on the analysts' assessments of each company's financials, market conditions, and growth prospects. However, it's important to note that stock prices can be highly volatile, and there are no guarantees that these picks will perform as expected.
Investors should always do their own research and consider their own financial goals and risk tolerance before making any investment decisions. It's also a good idea to consult with a financial advisor to determine the best investment strategy for their individual circumstances.
Conclusion
In conclusion, the stock market is a complex and dynamic entity that is constantly influenced by a range of factors, including economic indicators, political developments, and technological advancements. While it can be difficult to predict market movements with certainty, analysts and investors alike can use a range of tools and strategies to make informed decisions about where to allocate their capital.
The top 20 stock picks for FY2024 identified by analysts reflect a diverse range of industries and companies, from technology giants like Apple and Amazon to healthcare leaders like Johnson & Johnson and Pfizer. These picks are based on a combination of factors, including past performance, financial strength, and growth potential, and are intended to provide investors with guidance as they navigate the ever-changing landscape of the stock market.
It is worth noting that investing always carries a certain degree of risk, and past performance is not always indicative of future results. Additionally, each investor's financial situation, risk tolerance, and investment goals will be unique, and it is important to consider these factors when making investment decisions.
Despite these challenges, the stock market remains one of the most important and accessible tools for building wealth over the long term. By staying informed about market developments, utilizing effective investment strategies, and remaining patient and disciplined in their approach, investors can achieve their financial goals and build a secure and prosperous future.
FAQS
Q: What does FY2024 mean?
A: FY2024 stands for Fiscal Year 2024. It is a period of twelve months that starts on April 1, 2023, and ends on March 31, 2024.
Q: What is the basis for the analysts' top 20 stock picks?
A: The analysts' top 20 stock picks are based on their analysis of various factors such as the company's financial performance, market trends, industry analysis, and other relevant factors that could affect the company's stock price.
Q: Why are these stock picks important?
A: These stock picks are important because they represent the opinions of financial experts who have analyzed and evaluated the performance of the companies and industries. These picks can be used as a reference point for investors to make informed investment decisions.
Q: Should I invest in all the top 20 stock picks?
A: Investing in all the top 20 stock picks may not be the best strategy as it may not align with your investment goals and risk appetite. It is recommended to do your own research and analysis, consider your investment objectives, and seek the advice of a financial advisor before making any investment decisions.
Q: What are the risks associated with investing in stocks?
A: Investing in stocks carries a certain degree of risk, including the risk of losing your investment. Stock prices can be volatile and can fluctuate rapidly due to market conditions, economic events, company-specific news, and other factors. It is important to understand the risks and do your due diligence before making any investment decisions.
Q: How can I minimize the risks associated with investing in stocks?
A: You can minimize the risks associated with investing in stocks by diversifying your portfolio, investing in companies with a strong financial track record, understanding the company's business model and industry, and investing for the long term.
Q: Can I rely solely on analysts' top stock picks to make investment decisions?
A: It is not recommended to rely solely on analysts' top stock picks to make investment decisions. It is important to do your own research, analyze the company's financials, understand the industry, and consider your investment objectives and risk appetite before making any investment decisions.
Q: How often do analysts release their top stock picks?
A: Analysts may release their top stock picks periodically, depending on the market conditions and their analysis of the companies and industries. It is important to keep track of the latest developments and updates in the market and seek the advice of a financial advisor before making any investment decisions.