Higher output from select offshore India gas projects that raises upstream production and a credible path to profitability in its ambitious data-centric telecom project (launch expected in December 2015) should drive earnings growth thereafter.

On HDFC Bank, Barclays said the bank was ideally placed to benefit from a macro recovery, owing to its strong low-cost deposit (CASA) franchise, clean balance sheet and increased investment in the network.

“It remains a leader in key retail lending segments and is strong in transaction processing, giving it access to float (CA income).

“The recent pickup in network investments and its focus on digital transactions should help it maintain its leadership position in CASA and grow loans 3-6 per cent faster than the system,” it said.

Dr Reddy’s (DRL), Barclays said, was a strong play on niche therapeutic areas (injectables and oncology) driven by a robust Para-IV pipeline in the near term and a significantly differentiated R&D strategy for Proprietary products and Biosimilars.

“We forecast revenue and earnings CAGR of 15 per cent and 20 per cent, respectively, over FY15 to FY17 along with a 440 basis points increase in ROIC. DRL is the least expensive large-cap stock in our Asia ex-Japan Healthcare & Pharma coverage,” it said.

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