NEW YORK ( TheStreet) -- HDFC Bank ( HDB), ICICI Bank ( IBN), iGate ( IGTE), Sterlite Industries ( SLT), WNS Holdings ( WNS) and Dr Reddy's Labratories ( RDY) are Indian stocks with potential to deliver 21% to 30% returns, based on analysts' consensus estimates of 12-month price targets.

Indian stocks returned 13% in the last one year. However, total investor wealth lost during the last three months was substantial. The benchmark index BSE Sensex wiped out 8% in the past three months. Concerns like inflation, foreign institutional investor outflows, and interest rate hikes weighed heavy on the broader markets.

Nonetheless, for longer term, investors can consider several opportunities for appreciation. The following six stocks have potential to deliver attractive returns over the next one year. These stocks are from diverse sectors like banking and financials, metals, technology and pharmaceuticals. In the last one year, the selected stocks delivered an average 24% and have a potential 21%-30% upside over the next one year, according to analysts' consensus estimates.

6. WNS Holdings ( WNS) is a provider of offshore business process outsourcing services including data, voice and analytical services. The company transfers client's business processes to its delivery centers in India, Sri Lanka and the Philippines.

Third quarter revenue rose 4.7% year-over-year to $152.7 million, while gross margin stood at 20.4% in the third quarter of 2011, compared to 24.1% in the corresponding quarter of the prior fiscal year.

Net income for fiscal 2011 third quarter was $5.8 million, compared to $0.3 million in the corresponding quarter of the prior fiscal year.

Referring to operations, WNS's CEO Keshav Murugesh commented, "We also won a significant expansion with a top tier insurance client this quarter, clearly demonstrating that our farming program is gaining traction. We are very well positioned with a number of new client situations currently. Overall, the reaction to our new go-to-market strategy from both clients and prospects has been extremely positive. We expect this to lead to top line expansion in the next fiscal year."

The stock is trading at 9 times its estimated 2011 earnings with an upside of 21%, according to analyst consensus estimates.

5. iGate ( IGTE) is an integrated technology and operations (iTOPS) solutions provider with a global delivery model.

For the third quarter, net revenue increased to $81 million, compared to $52 million in the year-ago quarter. Gross margin stood at 42.7%, while operating margin was 19%.

For full year 2010, net revenue increased 45% year-over-year. Net income was $52 million, up from $29 million in the previous year. Full-year gross margin and operating margin were stable at 40% and 19%, respectively.

Reviewing the financials, Sujit Sircar, iGate's CFO commented, "In spite of absorbing over $3.2 million of post tax acquisition related expenses, we had a very strong earnings and cash flow quarter. Our continued endeavor to improve profitability and operations of the company is reflected in our results for 2010, and we ended the year with a high note in all our financial parameters."

The stock is trading at 15 times its estimated 2011 earnings.

4. Dr Reddy's Labratories ( RDY) is an integrated pharmaceutical company operates in segments like global generics, pharmaceutical services and active ingredients.

During 2010 third quarter, net sales grew 10% year-over-year. Omeprazole OTC and new product launches drove revenues in the U.S., but growth in Russia and India was a tad disappointing on the back of seasonality. Further, Europe de-grew on price erosion and declines in service segment revenue.

During the same quarter, net income surged 30% on lower tax rates, while operating profit margins (OPM) dipped. OPM declined 250 basis points quarter-over-quarter to 15.5% in the third quarter, led by higher sales and administrative expenses.

The stock delivered 35% during the last one year, and other near-term triggers include launch of Fondaparinux and generic Allegra D-24 products in the U.S. The stock is trading at 16 times its estimated 2011 earnings.

3. Sterlite Industries ( SLT) is a subsidiary of Vedanta Resources and is a non-ferrous mining company.

During the third quarter, consolidated net revenue increased 25% year-over-year on improved realizations for zinc, aluminum and lead. Earnings before interest and tax for copper and aluminum grew 38% and 120%, respectively. Overall, net income jumped 60% during the same quarter.

The company is well placed to capitalize on strong metal demand through its expansion plans in the zinc-lead segment and higher merchant power. However, capex plans are on hold and the litigation regarding Tuticorin could have a bearing on earnings, going forward.

Analysts have a 100% buy ratings and the stock is expected to deliver 29% in the next one year, based on consensus estimates. The stock is trading at 8 times its estimated 2011 earnings.

2. HDFC Bank ( HDB) is one of the biggest private sector banks focusing on retail, wholesale and treasury operations.

HDFC Bank's net profit increased 33% year-over-year in the December quarter, largely driven by income growth and lower provisioning. Loan advances grew 33% year-over-year.

Despite a 10 basis point year-over-year decline, margins remained healthy at 4.2%, supported by low-cost deposit franchises. However, margins could face some pressure, as the bank has to expand its deposit base.

Provisioning expenses were under control and coverage ratio improved to 81%. Asset quality remained healthy and continued to improve, gross and net non-performing loan ratios improved sequentially. Restructured assets stood at 0.3% of loan book.

The stock delivered 25% gains during the last one year. Analysts' consensus estimates project a 30% upside from current level. The stock is trading 3.8 times its estimated 2012 book.

1. ICICI Bank ( IBN) is the largest private bank in India with varied business interests including insurance and asset management.

For 2010 December quarter, the bank reported strong net profit growth of 30.5% year-over-year, topping analysts' estimates, mainly attributable to lower provisioning.

During the same quarter, loans grew 6.4% from the earlier quarter. Lower-cost deposits showed healthy traction, growing at 23% year-over-year and current account-saving account ratio improved to 44.2%. Net interest margins remained stable at 2.6%; however, cost-to-income ratio increased to 42.3% from 41.5% sequentially.

Asset quality remained strong, gross non-performing asset ratio increased marginally by 0.4% quarter-over-quarter, while net non-performing asset ratios continued to decline. Provision coverage ratio improved to 71.8% during the quarter from 69% in the previous quarter.

The stock has a 50% buy rating and is expected to deliver gains of around 30% in a year's time, as per analysts' consensus estimates. The stock is trading at 2.2 times its estimated 2012 book.

>To see these stocks in action, visit the 6 Indian Growth Stocks With Upside portfolio on Stockpickr.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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