Stock markets are funny. They behave like a yo-yo.

One day they go up like a rocket and the very next day they nosedive. And this has been happening for quite some time now.

While investors have lost thousands of crores of rupees in market capitalisation in the past few weeks all is not lost.

Even in these volatile times there are stocks that can give you magnificent returns if you bet on them for the long term.

After any stock market crash there is confusion in investors' mind as to which stock they should buy?

Here I am suggesting 7 stocks that can give you good returns in coming years. The reason behind their expected sterling performance in the future. These seven companies have taken concrete initiatives (highlight of recent developments) to boost their profits and earnings per share, EPS.

Why should you go for these stocks

They cover the sectors that show tremendous growth potential in India like retail, petrochemicals, telecom, pharmaceuticals, banking and engineering

• None of these represent the volatile commodity stocks
• Recent budget proposals are positive for these stocks
• These companies have fundamentally good business models and are controlled by sound and experienced managements
• Most of these companies are amongst the top five in their line of businesses
• Profitability, sales, and financial results of these companies are quite encouraging
• These are exactly the parameters that successful investors have looked at to make money in the stock markets

The magnificent seven

Name of the company	Sector
Reliance Industries	Petrochemical, gas, retail
Reliance Communication	Telecom
Wochkard Ltd.	Pharma,Hospital
Voltas Ltd.	Engineering
Tata Motors Ltd.	Automobile
ICICI Bank Ltd.	Banking
Tata Steel	Steel

Here are some recent developments and financial results of these 7 stocks, based on which one can safely assume them to be winners in the long-term.

Reliance Industries (RIL)

The number one Indian Private Sector Company is the real gem for this year as the company is expanding very aggressively in the retail segment as well as the petrochemicals space and also investing in distribution of gas to your doorstep.

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Highlights of recent developments:

• RIL has plans for an integrated cracker and petrochemicals complex (plant where they make plastics like polypropylene and has a high demand in India), with a total capacity of 2 million metric tonnes per annum in the Special Economic Zone (SEZ) at Jamnagar with an investment of $ 3 billion
• Reliance will start production from the KG-D6 block in June 2008 but is also targeting to produce 40,000-50,000 barrels of oil in the first half of 2008
• Mukesh Ambani, the promoters of RIL has decided to pick up a small stake in RIL at Rs 1,402 per share. This speaks of his confidence in the future of his own company
• RIL has signed a production-sharing contract (PSC) for an offshore exploration block in Democratic Republic of Timor-Leste with its Government
• Reliance Fresh, the fresh food and vegetables retail arm of RIL has plans to open 784 outlets in towns and 6,000 in rural town centres by the end of 2010 at an estimated investment outlay of Rs 20,000 crore
• Reliance subsidiary Reliance Retail has set a target of Rs 1, 00,000 crore sales through the retail outlets

Financial performance of the company in the last three quarters:

Reliance	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	277,710	295,500	261,660
Net Profit (Rs million)	27,990	27,090	25,470
EPS (Rs)	20.1	19.4	18.3

Reliance Communications

Like big brother Mukesh Ambani, Anil Ambani too has aggressive plans for his company. As the telecom industry is the fastest growing sector in India, the initiatives taken by him will surely benefit the company.

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Highlight of recent developments:

• Reliance Communications announced significant plans to expand FLAG Telecom's global optic fiber network. Over the next 36 months, FLAG Telecom will build the world's largest IP network through submarine cable systems
• Termed FLAG Next Generation (NGN), the project will cater to the fast growing telecom needs of over 5 billion customers across the globe
• Reliance Communications said it would invest $1.5 billion (around Rs 7,000 crore) in Flag Telecom, its under-sea cable subsidiary, over the next three years. The investment will help lay an additional 50,000 km of optic fiber cable and expand the company's reach to over 60 countries
• At present, Flag Telecom operates the world's largest private under-sea cable system spanning 65,000 km and has a customer base of over 200 leading operators, which include the top 10 international carriers

Financial performance of the company in the last three quarters:

Reliance Communication	Q3 FY07	Q2 FY07	Q1FY07
Sales (Rs million)	30,434.5	28,231.9	229
Net Profit (Rs million)	77,10.6	49,65.2	84.5
EPS (Rs)	3.77	2.43	0.07

Wochkard Ltd

This stock is a blend of pharmaceuticals and the fast-growing hospital industry in India.

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Highlight of recent developments:

• Wochkard is planning to open two new hospitals in Rajkot and Surat
• As the hospital sector is going at a very fast pace and recent duty cut on hospital equipments in the budget will definitely help the company
• Wockhard (USA) has launched Ondansetron injection in the United States. Wockhard had bought Ireland's Pinewood Laboratories for $150 million to expand its presence in Europe's generics market. 'European business will now exceed $200 million, accounting for almost half of Wockhardt's total sales,' the company said in a statement
• It said the acquisition would strengthen Wockhardt's position in the United Kingdom, which accounts for half of Pinewood's $70 million sales
• Wockhardt has signed an in-licensing agreement with Crawford Healthcare of UK to market Viticolor, a skin camouflage gel for topical application for vitiligo patients

Financial performance of the company in the last three quarters:

Wockhardt	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	2,500	3,349	2,865
Net Profit (Rs million)	485	902	495
EPS (Rs)	4.43	8.24	4.53

Voltas

A Tata group company, Voltas has transformed itself into an engineering company from a consumer durable firm making air-conditioners. It is now undertaking large electro-mechanical projects in India and in the Middle East.

Voltas also provides engineering services to the world's major engineering equipment manufacturers.

Highlight of recent developments:

• The company's order book (an indication of how much work the company needs to complete; it also indicates that the company has enough work on its hands) for electromechanical projects was strong at Rs 1,900 crore as on 30 June 2006
• Of these, orders worth Rs 600 crore are from domestic firms whereas the rest are from overseas, mostly from the UAE
• Voltas has 32 acres of land near Hyderabad, which the company may develop in future. The Company has tied up with Besseling Group of Netherland to form a strategic partnership to deliver turnkey solutions for storage of Horticulture Produce in the Controlled Atmosphere (CA) / Ultra-Low-Oxygen (ULO)

Financial performance of the company in the last three quarters:

Voltas	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	5,808.6	5,406.5	5,992.9
Net Profit (Rs million)	194.3	250	217.5
EPS (Rs)	0.59	0.76	6.57

Tata Motors

Tata Motors, India's number one commercial vehicle maker and worlds 5^th largest commercial vehicle maker has wide product portfolio to offer to its customers.

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Highlight of recent developments:

• Tata Motors had signed an agreement with Motteur Development International (MDI), France, for launching the latter's environment-friendly engine, which runs on compressed air. The engine will be efficient, cost-effective, scalable, and capable of other applications like power-generation
• Tata Motors & Fiat have announced an agreement for pick-up production in Argentina
• Tata Motors & Thonburi of Thailand has set up a joint venture in Thailand for pickup trucks
• Tata Motors & Fiat Auto has announced forming a joint venture in India
• Tata Motors Ltd has announced that the Company has set up a new subsidiary for its vehicle financing operations. The new entity, TML Financial Services Ltd (TMLFSL), will be a 100 per cent subsidiary and will function as an NBFC
• Tata Motors' much-awaited Rs 1 lakh car project to come up in West Bengal at Singur

Financial performance of the company in the last three quarters:

Tata Motors	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	80,474.1	75,892.9	67,086
Net Profit (Rs million)	5,131.7	4,417.2	3,818.5
EPS (Rs)	13.32	11.48	9.97

ICICI Bank

India's number one private sector bank is expanding its business rapidly and sure to benefit from the Indian economic boom.

Highlight of recent developments:

• Tie up with Indian Railways for extending the sale of e-tickets through merchant establishments located across 125 cities all over the country
• ICICI Bank has taken a decision to take over the Sangli Bank

Financial performance of the company in the last three quarters:

ICICI Bank	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	78,052.4	70,395.6	63,161.9
Net Profit (Rs million)	9,100.8	7,550.1	6,200.1
EPS (Rs)	10.18	8.46	6.96

Tata Steel

As the government is very keen to develop infrastructure and the housing sector in India, the demand for steel will remain high for at least the next decade.

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Highlight of recent developments:

• Corus' acquisition will make Tata Steel the world's fifth biggest steel maker
• Tata Steel has entered into a definitive agreement to acquire 100 per cent equity stake in Rawmet Ferrous Industries
• An agreement with Japan's Nippon Yasen Kabushiki Kaisha (NYK), one of the largest shipping companies in the world, to form a 50:50 joint venture (JV) shipping company to cater to dry bulk and break bulk cargo segment
• NatSteel Asia, Singapore, a wholly owned subsidiary of Tata Steel, has acquired equity shares in NatSteel Trade International, NatSteel (Xiamen), and NatSteel Vina from Southern Steel Berhad, Malaysia

Financial performance of the company in the last three quarters:

Tata Steel	Q3 FY07	Q2 FY07	Q1 FY07
Sales (Rs million)	50,382.6	47,245.3	43,902
Net Profit (Rs million)	10,637.5	11,014.9	9,534.1
EPS (Rs)	18.33	19.15	17.23

All these developments will go a long way in increasing the above companies' sales, profits and earnings per share. I am convinced about the bright future of these stocks. How about you?

Hemil Shah is a Get Ahead reader who dabbles in shares.