Ten stocks that can deliver up to 50% in 2014: SMC

Indian stock markets will hit new highs post general elections in 2014, according to a report by domestic brokerage SMC. Improvement in economic activity, better policy decision-making by the newly elected stable government and an improvement in investment climate are likely to stimulate bulls in the markets, the brokerage says. High US unemployment, Europe's debt crisis and China's slowing economy are some of the global headwinds that might keep investors on the edge, the brokerage added.

Here are SMC's top 10 stock picks for 2014.

1) Adani Port and SEZ: Buy with a target of Rs 219 (upside potential 37 per cent)

Steady growth in revenue and profits. The company is likely to maintain growth momentum on the back of huge capex.

2) Cairn India: Buy with a target of Rs 421 (upside potential 32 per cent)

Strong financial performance. The company is focused on exploration across the asset portfolio both in India and core areas internationally and has also started seismic survey in its South Africa block.

3) Crompton Greaves: Buy with a target of Rs 202 (upside potential 53 per cent)

Well poised to capitalise on future global growth opportunities. Expected to register healthy sales growth supported by strong order backlog.

4) Escorts Limited: Buy with a target of Rs 179 (upside potential 28 per cent)

Focus on execution to further improve the operating performance in the months ahead. Consistently strong results over the past few quarters is an outcome of introducing high power and specialized tractors, which are improving volumes and strengthening margins.

5) Essel Propack: Buy with a target of Rs 68 (potential upside 30 per cent)

Strong and sustained growth of the FMCG sector driving the company. Its R&D capability, global customer network, large scale and manufacturing expertise may help in seizing the opportunity that is being continuously thrown up across the globe.

6) M&M: Buy with a target of Rs 1202 (upside potential 25 per cent)

Strong farm equipment expertise has led to expansion into key overseas markets. Efforts on developing new products and technologies. Price increases will help to protect and maintain margins at around 11 per cent, going forward.

7) Punjab National Bank: Buy with a target of Rs 798 (upside potential 27 per cent)

September quarter performance was an aberration. In the next half year, PNB is expected to report healthier performance.

8) Sesa Sterlite: Buy with a target of Rs 264 (upside potential 33 per cent)

World class assets, efficient operations and strong track record. Despite volatile commodity prices and temporarily suspended iron ore operations at Goa and Karnataka, the company has delivered a strong operational and financial performance during the quarter ended September 2013. Expected to recommence mining in Karnataka soon and Goa mining suspension likely to be resolved by the Supreme Court soon.

9) Torrent Pharma: Buy with a target of Rs 655 (upside potential 37 per cent)

Expansion into further locations and increasing presence in new therapeutical areas on cards. Launch of new products to fill gaps in current portfolio likely.

10) Wipro: Buy with a target of Rs 705 (upside potential of 29 per cent)

Company posted its strongest growth in seven quarters in the September. The strategy of focusing on the top 125 accounts is delivering results. There is a broad based growth across customers. Improved deal win rates and couple of large multi-year deals won by the company to drive growth ahead.

(All these recommendations have a one-year horizon)