In the coming quarters, two things will impact earnings: High crude oil prices and a weak rupee. A rising dollar puts pressure on the margins of all companies that import raw materials. When margins come under pressure, they lose the ability to think about, or plan for, expansions. That will show up as an impact later.

However, it is not the first time (nor will it be the last) that this is happening. Our selected stocks for today depict a strong upward trajectory in their overall average score which is based on five key pillars: Earnings, fundamentals, relative valuation, risk, and price momentum.

This implies that there has been a significant improvement in their market outlook in the given time frame. Here are our top picks with consistent score improvement and upside potential of up to 27%:

1. Tata Consultancy Services (TCS) – Up 12.5%

  • Consolidated revenue grew 16.9% YoY in Q4FY24.
  • Net profit increased by 23.3% YoY, driven by strong margins.

TCS has a solid track record of delivering earnings growth and expanding its market share.

2. Infosys – Up 11.9%

  • Consolidated revenue grew 17.5% YoY in Q4FY24, driven by strong growth in digital services.
  • Net profit increased by 20.3% YoY, benefiting from cost optimization and improved efficiency.

Infosys has been focusing on digital transformation and is seeing the benefits of this effort.

3. Hindustan Unilever (HUL) – Up 10.8%

  • Consolidated revenue grew 12.5% YoY in Q4FY24, driven by strong sales growth in emerging markets.
  • Net profit increased by 14.3% YoY, benefiting from cost reduction and improved operational efficiency.

HUL has a diverse portfolio of brands and is well-positioned to benefit from growth in emerging markets.

4. Reliance Industries – Up 9.5%

  • Consolidated revenue grew 15.3% YoY in Q4FY24, driven by strong growth in petrochemicals and other businesses.
  • Net profit increased by 12.1% YoY, benefiting from improved operational efficiency and cost reduction.

Reliance Industries has been diversifying its revenue streams and is well-positioned to benefit from growth in emerging markets.

5. Adani Enterprises – Up 8.2%

  • Consolidated revenue grew 10.9% YoY in Q4FY24, driven by strong growth in its renewable energy business.
  • Net profit increased by 11.1% YoY, benefiting from improved operational efficiency and cost reduction.

Adani Enterprises has been investing heavily in renewable energy and is well-positioned to benefit from the growing demand for clean energy.

These stocks have shown significant improvement in their market outlook and have upside potential of up to 27%. However, it’s essential to note that past performance is not a guarantee of future results, and investors should conduct thorough research before making any investment decisions.