SBI, HDFC Bank, LIC among top seven picks of Centrum for December
HDFC Bank Ltd, State Bank of India. Dabur India Ltd, Zee Entertainment Enterprises, Life Insurance Corporation of India, HDFC Life Insurance Company, Bandhan Bank State Bank of India (SBI) , the Public Sector Banking and Financial services company remains among top picks of Centrum with target price of ₹665 indicating more than 9% upside for the stock from current market price of close to ₹608. As per Centrum Broking after many years of low credit growth and rising NPAs (non performing assets) and write-offs and provisioning, SBI now is coming out of its shadows and showing growth.
In Q2 and the last few quarters, SBI has shown good growth and low NPAs. Its valuation remains attractive relative to its private sector peers. It remains a good play on India’s financial inclusion and growth story. Dabur India Limited is the fourth largest FMCG Company in India, remains another top pick of Centrum with target price of ₹650- ₹700 indicating upside of 18-27% from current market price of close to ₹550 for the stock.
Dabur has a very strong portfolio of brands that are capable of giving higher than industry growth, says Centrum. As per Centrum Focus on building capabilities, rural penetration and focus on brands can lead to superlative growth in the long term. Zee Entertainment Enterprises, with a target price of ₹300, is another top pick of Centrum.
The stock is trading at close to ₹252 levels and Centrum target price indicates more than 19% upside. Zee-Sony merger as per Centrum institutional Broking will create a media company with more than 75 channels in different languages. Post-merger it has the potential to dominate in digital media and broadcasting businesses.
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