Diwali Top picks
Samvat 2072
Asian Paints: Rs 830
This undisputed leader in the paint industry is having a good time due to lower crude prices. Margins have increased. Mr Modi’s push on housing for all and rural demand is picking up. The demand for the old houses being repainted is equally big opportunity. The management is great and it has indicated on introduction of new products.
Axis Bank: Rs 476
It is one of the finest growing bank in the private sector. It was formerly know as UTI Bank and even currently it has a lot of government FD’s and public sector transactions. After the merger of ENAM Securities, it has a lot to offer to the clients in terms of wealth management and the NPA levels are also less as compared to other private sector banks.
Infosys Limited Rs 1133
One of the biggest company in IT after TCS, this company has gone through lots of changes at the helm. Mr Narayan Murthy has groomed the company into what it is today. Now it is being headed by Mr Vishal Sikka and he has chalked out a good growth plan by which it will regain its previous glory and market share.
Maruti Suzuki Limited Rs 4482
Maruti Suzuki has crossed the market cap of Suzuki Japan too , this is how important India is a market for Suzuki. Maruti Suzuki has always been a front runner in sales and service of small cars. It is considered to be the leader in the segment. It has started NEXA brand car showrooms where it has recently launched the S-Cross. It has had a good start and new models will boost the brand further. The Ciaz brand is doing well and it has plans to launch 5 models in the next 2 years.
Cummins India Rs 1076
Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high performance outlook is based on customer focus, integrity and capability of its people. Part of the US $19.2 billion Cummins Inc., Cummins in India is a Group of eight legal entities across 200 locations in the country with a combined turnover of Rs. 9,285 crores in 2014 and employing close to 9,700 individuals.
Sun Pharma Limited Rs 866
This Pharma major under the leadership of Mr Dilip Sanghvi has shown superb growth and it is a huge multibagger in the last 10 years. With the takeover of Ranbaxy, there is some pain in the near term but the long term vision and growth prospects look intact. The prospects of the whole pharma industry is excellent for the next 10 years and we believe with such great promoters the only way for Sun is up.
Tech Mahindra Limited Rs 557
This Anand Mahindra group company is among the top 5 in the IT industry. It has great financials and some solid growth plans. Now the dependence on Telecom IT solutions is less and they are diversifying into all sorts of IT services. The working is very transparent and Mr Nayyar is showing great skills as a leader at the top.
ITC Limited Rs 336
ITC Limited has factored in most of the bad news in the current price. The FMCG business which is at 9000 crores is all set to go to 1 lac crores by 2030. This is more than 11 times and is huge enough to rerate the company. Though there has been problems related to the cigarette business, the growth has been good and we believe the future is bright for this FMCG multinational.
Torrent Pharma Limited Rs 1539
This company promoted by Sudhir Mehta and Samir Mehta group is a rising star in Pharma sector. With lot of new product launches, US FDA compliant, USA market presence, torrent phara is doing all the right things in the sector. Also the acquisition of Elder pharma will add a lot to the sales in terms of topline and bottomline. The company is doing very well in the current year and can grow at a cagr of 20% plus.
United Spirits Limited Rs 3265
The company which has been taken over by Diageo group and has 53% market share of the Indian Markets. It is having lots of brands like Mc Dowells Royal Challenge being the flagship brand. It also markets Black Label and Red label. It is into all segments in liquor business. It is expected to grow 70% CAGR for the next 2 years and there after too this multinational company will post good growth as it benefits from the young Indian population.
