13 stock picks by CLSA for not-faint-hearted share investors

CLSA in its latest note suggested 13 stocks including Eternal Ltd and NHPC Ltd that it believes can deliver up to 58 per cent return in the next 12 months. Calling them as high conviction Tiger picks, CLSA said these are the stocks its India analysts are most convinced about. The list included Apollo Tyres, Avenue Supermarts (DMart), Indus Towers, ONGC, Persistent Systems, DLF, Power Finance Corporation (PFC), REC, Tech Mahindra, UltraTech Cement and Varun Beverages. The multiples for some are not for the faint hearted but the growth rates are equally high, CLSA said. “With a healthy dose of innovation, ambition and risk taking, Eternal is transforming consumption, and we believe it is just getting started, with potential to serve a US$50bn profit pool by FY35CL. We maintain our HC O-PF recommendation and lift target price from Rs 450 to Rs 483,” said CLSA Analyst Aditya Soman.

Eternal’s forecast EPS growth for year ending March 2026, 2027 and 2028 is 103 per cent, 405 per cent and 95 per cent. On NHPC, CLSA Analyst Bharat Parekh reiterated high conviction O-PF rating on a decadal growth green utility. He said NHPC has 15 per cent of India’s hydro capacity and a 50 per cent share of under-construction projects, driving strong EPS growth.

With a step-change in renewable energy, it forecast 69 per cent higher EPS and ROE to expand 419 bps over FY25-27CL. "We believe the award of India’s largest hydro project in 3QFY26 and seven more projects over FY25-27 should crystallise NHPC’s estimated 2.6x decadal growth in REE.” Analyst Bharat Parekh who targets 41% upside. NHPC is on 14x 2027 PER," CLSA said.

CLSA on November 14 updated its target price on Apollo Tyres to Rs 650 from Rs 586 earlier on 5-10 per cent increase in FY26-27 EPS estimates on the back of increase in Ebitda margins by 61-63 basis points, driven by softening of raw material prices, delivering annualised return of 18 per cent over the next five years on a robust rental growth outlook and steady growth in residential presales. On DMart, it said the company stood for everyday low value and that the company is evolving, with DMart Ready, offering a more seamless experience for wealthier consumers willing to spend a little more while maintaining affordability compared to other online operators.   It sees DLF as long-term opportunity of tapping into growing urbanisation for large urban cohorts with limited affordability.