Bulls did not disappoint investors in the first month of the
new calendar year as Indian market rose to fresh record highs consistently so
far in the month of January.
The rally in Indian markets is not yet over but the money is
likely to be made in individual stocks. The risk-to-reward ratio with respect
to indices in the short term looks limited, but the current bull run is likely
to span out for next 10-15 years.
"We stand at an inflection point whereby there is a
high probability that the economy and the markets will shift a gear higher in
the year 2018," Sunil Subramaniam, CEO, Sundaram Mutual told Moneycontrol.
"The equity markets would increasingly look at earnings
delivery given the fact that valuations are robust based on trailing returns.
We strongly believe that we are still in the initial stages of a long-term bull
market which can span 10 to 15 years," he said.
RELATED NEWS
Here are SP Tulsian's top trading ideas
Exit ITC, says Ashwani Gujral
Hold L&T Finance Holdings, says Ashwani Gujral
Investors are better off betting on stocks which can deliver
benchmark beating gains. The optimism stems from the fact that earnings are
likely to register double-digit gains in the in the FY19.
“We expect strong momentum to continue for equity market
over FY19 due to revival in earnings after teething problems of GST, low base
of demonetisation, increasing focus of government on infrastructure development
even at the cost of fiscal slippage and favourable global headwinds with
favourable commodity prices,” Abhinav Gupta, President - Capital Markets, Share
India Securities told Moneycontrol.
“Increasing government spend will lead to higher purchasing
power and we expect earnings to grow at around 17-18 percent over next year. We
maintain our year-end Nifty target at 12,500 in line with current multiples and
pricing in the earnings growth over the course of the year,” he said.
We have collated a list of 5 stocks from various brokerage
house on stocks which could emerge as a dark horse in 2018 and beyond:
Dr. Reddy’s Laboratories:
CLSA which has an outperform rating on Dr. Reddy’s
Laboratories said that Dr. Reddy’s Lab could be a dark horse in 2018 if it is
able to monetise its complex products pipeline in a timely manner. The stock
has fallen over 21 percent in the calendar year 2017.
Global pharma consolidation will gather steam in 2018 as
challenging industry dynamics in the USA drive supplier-side consolidation
whereas, in India, the government’s focus on improving quality and
good-manufacturing-practice compliance could increase market share at top
companies.
Gujarat Gas:
Citigroup sees Gujarat Gas as a Dark Horse in the gas space.
Gujarat Gas (GG) is one of India’s largest player in the industrial gas segment
and city gas distribution (CGD) with a dominant presence in Gujarat.
The company has been rapidly expanding its reach in Gujarat
by way of securing licenses to expand its CGD network across five new areas,
making it to 19 districts of Gujarat, Dadra and Nagar Haveli, Thane and Palghar
in Maharashtra.
The current rising environmental concerns and the
government’s aim to switch to gas-based economy put companies like Gujarat gas
in a sweet spot, ICICIdirect said in a report.
“We believe the company’s strong CGD network offers good
demand potential due to lower CNG, residential PNG penetration and increased
usage of natural gas for industrial volumes,” it said. The domestic brokerage
firm has a BUY rating with a target price of Rs1000.
DLF:
ICICI Securities which has a buy rating on DLF sees the real
estate player emerging as a dark horse in the next 2-3 years.
DLF is the likely dark horse over the next 2-3 years in the
sector, said the report. The promoter stake sale in its rental SPV to GIC
Singapore being concluded, DLF is set to receive Rs140-150bn of proceeds by
Q4FY18 through promoter fund infusion/QIP which will bring down DLF’s debt by
half.
A fresh infusion of money would enable the company to
refocus on its strategy in the residential segment, which has been a laggard
over the last 4 years.
Tata Motors:
Emkay sees Tata Motors emerging as a ‘Dark Horse’ in the
automobile space. Tata Motors would be our dark horse, as currency worries
subside and volume growth momentum persists. Among ancillaries, Emkay like
Apollo Tyres and Exide Industries, it said in a report.
The Indian automobile industry is in a sweet spot on the
back of a cyclical recovery across segments. Rural India is turning out to be
the growth frontier for the automobile industry, as near-normal monsoon for 2
years and receding effect of demonetization have bolstered consumer confidence.
Dynemic Products Ltd:
Rudra Shares and Stock Broking who has an Accumulate
recommendation on Dynemic Products Ltd. The company is a leading global
manufacturers & distributor of Food Colors, Lake Colors, and Blended Colors
& US-FDA certified FD&C Dyes.
The future of Dyestuff and Dye Intermediates has good
prospects in the coming years owing to its high demand. The growth of dye
sector in the future will continue to depend on the performance of end-user
industries like paints, textiles, printing inks, paper, plastics, and
foodstuffs, said the report.
Food Processing Industries is increasing at a high growth
rate in almost every country thus opening the door for the high demand for
products that increases the shelf life of processed food. So the overall demand
for the antioxidant is expected to increase in coming years.
No comments:
Post a Comment