HDFC Securities’ Top 3 Stocks for Aug-Sep 2024 (15-25% Upside)
Looking to invest smartly in the short term? You’re not alone. Many investors are constantly on the lookout for good stock recommendations that offer solid returns without having to wait years. The good news is, HDFC Securities has suggested a list of promising stocks that could do well in the next couple of months.
Wondering which stocks made the list? Let’s dive into the details and see which companies HDFC thinks might be worth watching closely.
Why These Stock Picks Matter Right Now
Before we jump into specific stocks, it’s worth asking—why should you even consider short-term picks? With the market being as dynamic as ever, making informed short- to medium-term investments can help you:
- Grow your portfolio faster
- Capitalize on upcoming market trends
- Diversify without long-term commitment
HDFC Securities has analyzed market patterns, company fundamentals, and catalysts to bring together this list for the next 1–2 months. Let’s take a closer look at each one.
1. Rail Vikas Nigam Limited (RVNL)
Recommended Target: ₹221
If you’re keen on infrastructure plays, RVNL could catch your eye. It’s a public sector company heavily involved in railway infrastructure development. With the government’s continued push on rail and infrastructure, RVNL has potential to ride that spending wave.
Why RVNL?
- Strong order book
- Positive ongoing project execution
- Government support in infrastructure investment
The current stock performance plus the anticipated execution of public projects give this one a solid short-term story. Sure, it’s a PSU, which comes with its usual volatility—but that also presents a timely opportunity.
2. Central Depository Services (India) Ltd. – CDSL
Recommended Target: ₹2,031
CDSL helps keep track of electronic shareholdings in India. As more investors shift to stock markets, particularly retail investors, firms like CDSL benefit through increased activity.
Let’s put it this way: if you’re bullish on more people joining the investing bandwagon, CDSL’s business gets a direct boost.
Why consider CDSL?
- Increasing demat account openings
- Growth in retail participation
- Strong financials and high return ratios
Holding a near-monopoly along with NSE’s NSDL, CDSL stands in a very comfortable spot—making it a long-term winner too, if not just for the short term.
3. CARE Ratings
Recommended Target: ₹875
CARE Ratings is one of India’s leading credit rating agencies. When you see businesses growing or new IPOs being listed, firms like CARE are in demand to rate those projects. That makes them a unique play on overall economic momentum.
Why watch CARE?
- Stable business model
- Beneficiary of increased fundraising and bond issuance
- Improving margins and return on equity
In short, CARE Ratings isn’t just a ratings agency—it plays a critical role in India’s expanding financial ecosystem. With economic activity picking up, this is a low-profile pick with high potential.
4. Force Motors
Recommended Target: ₹7,203
This one might surprise you. Force Motors, known for manufacturing light commercial vehicles (LCVs), might seem like an underdog. However, HDFC Securities believes that its consistent product innovation and demand reforms make it a sleeper pick.
Why Force Motors?
- Strong demand recovery post-COVID
- New product launches globally
- A good EV strategy starting to take shape
If the term “hidden gem” fits anywhere, Force Motors could be it. Sure, autos can be a bumpy road, but this company’s fundamentals give reason for optimism.
5. Mangalore Refinery and Petrochemicals Limited (MRPL)
Recommended Target: ₹246
If you’ve been following oil prices or refining news, MRPL probably already caught your attention. As a key player in petroleum refining, MRPL is positioned to benefit from favorable crude spreads and rising demand in both domestic and export markets.
In MRPL’s favor:
- Improving margins in the refining segment
- Strategic location in Karnataka
- Improved financial performance in recent quarters
With the swing in energy demand and supply setups globally, MRPL offers exposure to a cyclical yet potentially profitable sector.
Bonus Tips for Short-Term Investing
These picks may offer strong upside over the next couple of months, but short-term investing comes with its own risks. Here are a few handy reminders:
- Set realistic targets. Don’t expect overnight doubling of money.
- Have an exit plan. Know when you’ll take profits or cut losses.
- Monitor news and updates. A government announcement or sectoral shift can change the game.
Sometimes, the best performing stocks are those that aren’t trending on social media. Be patient, and trust the research!
Final Thoughts
Whether you are new to investing or a seasoned trader, these stock picks from HDFC Securities provide a roadmap for potential gains in the next 1–2 months. Remember, these are not long-term bets—they’re based on near-term momentum and fundamentals.
Diversifying among a few of these can also help reduce the risk of betting on just one. And most importantly, do your own research. These suggestions are a great starting point, but smart investing is always about staying informed and being mindful of your own risk appetite.
So, which one are you adding to your watchlist?
https://www.hdfcsec.com/research/stock-market-ideas/trading-ideas