Looking to invest in SIPs? Here are 11 top picks from HDFC Securities

Central Depository Services Ltd | Depository Services: CDSL, the only depository in India to be listed, has a market cap of Rs 13,278 crore. It facilitates transactions and holding in securities (in electronic form) and settlement of trades on stock exchanges. It continued to add beneficiary owner accounts at a rate of 92.4 percent YoY in the third quarter of FY22. CDSL also ventured into newer domains, including KYC/C-KYC, through subsidiary CDSL Ventures. Concerns: High-regulated nature of operations, reduced authentication charges by UIDAI, rise in competition, and prolonged bearish phase in capital markets are key risks for the company. (Image: Unsplash)

Hindustan Petroleum Corporation Ltd | Refineries: One of India’s top-three oil marking companies, HPCL has a market cap of Rs 38,592 crore. HPCL operates three refineries with an overall capacity of 27.1 million metric tons (MMT) and a sales volume of 36.6 MMT in FY21 versus 39.6 MMT in FY20. HPCL has about 10.8 percent share in the oil refining market. Concerns: Economic slowdown, delay in project execution, volatility in oil and gas prices and in gross refining margins and regulatory changes in the oil and gas industry can affect the company’s growth. (Image: Reuters)

ICICI Bank | Banks - Private Sector: The second-largest private sector bank in India, ICICI has a market cap of Rs 5,03,350 crore. As of the fourth quarter of FY22, it has 5,418 branches and 13,626 ATMs. The lender delivered a strong quarter and registered a 59 percent year-on-year growth in net profit. A higher-than-expected deterioration in the asset quality could result in the erosion of the Tier I capital. Concerns: Formation of bad loans can lead to high provisioning and compressed return ratios. (Image: Reuters)

ITC | Cigarettes and others: ITC has extended itself extensively in the FMCG market. It is a leading player in the Indian paperboard and packaging industry and is called a pioneer in farmer empowerment. ITC also runs a chain of luxury hotels and a specialised global digital solutions provider, ITC Infotech. ITC is likely to sustain high single-digit volume growth in coming quarters, backed by no tax hike and increased mobility. Concerns: Profitability and cash generation are heavily skewed towards the cigarettes, and any further lockdowns can affect profitability, punitive taxation by the government on the cigarettes, poor capital allocation in the future and rural slowdown due to weather or other reasons that can affect the company. (Image: ITC)

Oil & Natural Gas Corporation Ltd | Oil Exploration and Allied Services: ONGC is the country’s largest oil and gas producer. It boasts of having a nearly 73 percent share in India’s total production of crude oil and 79 percent share of natural gas. It is also a significant producer of LPG, superior kerosene oil, naphtha and C2/C3 (diatomic carbon/tricarbon). ONGC has a market cap of Rs 2,04,115 crore. Subsidiary ONGC Videsh has had stable performance. Concerns: The volatility in oil and gas prices and regulatory changes in the oil and gas industry can affect the company’s operations. (Image: Reuters)

Reliance Industries | Refineries, Petrochem, Telecom, Retail: One of India’s largest conglomerates, RIL has a market cap of Rs 1,822,243 crore. RIL possesses the largest single-site refinery globally, a broad product portfolio, and highly integrated operations. RIL has a refining capacity share of about 27 percent in the domestic market. Concerns: Volatility in crude oil prices and currency can highly affect growth. Regulatory and policy changes in the telecom business and competition from other players in the retail business can also lead to other than expected results. (Image: REUTERS/Shailesh Andrade/Files)

State Bank of India | Banks - Public Sector: The largest public sector bank in India with over 22,000 branches, SBI has a market cap of Rs 4,28,068 crore. The financial conglomerate’s asset quality in the third quarter of FY22 with annualised credit costs stood at 1.1 percent. Gross slippages moderated to 0.4 percent. The restructured book remained steady at 1.5 percent, while early delinquencies improved to 0.2 percent. GNPA/NNPA improved sequentially to 4.5 percent/1.3 percent. The revival of economic activity is likely to accelerate portfolio growth. Concerns: Macro-economic risks as newer private sector banks can lead to a faster than expected decline in market share. (Image: Reuters)

Thermax Ltd | Heavy Engineering: Thermax's business portfolio includes products for heating, cooling, water and waste management, and speciality chemicals. It has a market cap of Rs 25,615 crore. Thermax is likely to be benefited with India’s focus on green energy. The company boasts of having a strong balance sheet and a healthy cash position. Concerns: Margin is likely to remain under pressure due to RM price movement, fixed price contracts and higher logistics costs. (Image: Thermax)

TVS Motor Company Ltd | Automobiles: The third-largest two-wheeler company in India, with a market cap of Rs 29,813 crore, TVS has an annual sale of more than 30 lakh units and annual two-wheelers and three-wheelers capacity of over 55 lakh and 2 lakh, respectively. TVS is the only auto player within the listed space that witnessed margin improvement, even in FY22, in a weak demand environment. TVS is planning to launch 2W-3W EVs in the next 24 months. It is investing Rs 12 billion in future technologies, including EVs. Concerns: A slowdown in 2W sales and competition in electric vehicles, including from start-ups, can deflate the expected growth. (Image: Reuters)