After a strong rally in the Samvat 2070, analysts' are confident of a similar action in Samvat 2071; however, the action will be more centered towards individual stocks.
Both Sensex and Nifty surged over 26 per cent in last 12 months or from Samvat 2071, and a big blockbuster move on the index looks difficult because of global concerns which will cap the upside, but the action will still remain in individual quality stocks.
"One should tamper the expectation because typically after a big rise, people expect another big rise which is not right to expect fundamentally. If you see last year's rise, it happened on the back of four years of disappointment," says Raamdeo Agrawal, Managing Director & Co Founder, MOFSL.
"So, clearly it will be a good market, very buoyant market. The stock markets may remain say maybe 15-20 per cent, but individual stocks will do very well. I mean individual companies could be very-very interesting," he added.
There were many stocks which rose multifold in the last one year. But, most of the action was in mid and small cap space, which analysts think will hog limelight in Samvat 2071 as well, considering the fact that economy has bottomed out and government is focused on implementing various pro-growth reforms.
In the midcap space there were lot of stocks which more than tripled investors wealth in the last 12 months, which include names like CCL International 571per cent, NBCC 461per cent, Sundaram Clayton 447per cent, Finolex Cables (278per cent) and PMC Fincorp (536per cent).
In the BSE-500 index, stocks which rose over 300 per cent include names like GATI (569per cent), CEAT (454.55per cent), TVS MotorBSE 0.18 % Company (413.55per cent), Aurobindo Pharma (347.10 per cent) and Monsanto IndiaBSE 1.29 % (318 per cent).
Ramdeo is of the view that we will be able to find many multi-baggers in the market that is what is important; because, we are not buying indices, we are buying individual companies. So for buying good companies and investing, it is going to be a fantastic time, he concludes.
Most analysts expect market to remain bullish from this Samvat to the next, but the volatility is likely to continue amid uncertainty over rise in US interest rates and slowdown in global economy.
Most of the companies have rallied ahead of their fundamentals and a slight pull back cannot be ruled out, before the market resumes its uptrend. Avoid buying stocks without studying their fundamentals, suggest analysts.
"People would just casually buy stocks at this point of time after such a huge rise. They have to be very selective. It is a stock-picker's paradise even today and I am a strong believer of that," says Porinju Veliyath, MD & Portfolio Manager, Equity Intelligence India.
"I am seeing many potential multibaggers and when I look for values, I am still more convinced that the value is lying in the midcap and the small cap segment," he added.
Veliyath is of the view that most of them (midcaps) have gone three-four times on an average in the last one year. So there is huge money yet to be made in spite of the big rise and one thing that investors have to bear in mind is that there is a significant difference between a good company and a good stock, he added.
Both Sensex and Nifty surged over 26 per cent in last 12 months or from Samvat 2071, and a big blockbuster move on the index looks difficult because of global concerns which will cap the upside, but the action will still remain in individual quality stocks.
"One should tamper the expectation because typically after a big rise, people expect another big rise which is not right to expect fundamentally. If you see last year's rise, it happened on the back of four years of disappointment," says Raamdeo Agrawal, Managing Director & Co Founder, MOFSL.
"So, clearly it will be a good market, very buoyant market. The stock markets may remain say maybe 15-20 per cent, but individual stocks will do very well. I mean individual companies could be very-very interesting," he added.
There were many stocks which rose multifold in the last one year. But, most of the action was in mid and small cap space, which analysts think will hog limelight in Samvat 2071 as well, considering the fact that economy has bottomed out and government is focused on implementing various pro-growth reforms.
In the midcap space there were lot of stocks which more than tripled investors wealth in the last 12 months, which include names like CCL International 571per cent, NBCC 461per cent, Sundaram Clayton 447per cent, Finolex Cables (278per cent) and PMC Fincorp (536per cent).
In the BSE-500 index, stocks which rose over 300 per cent include names like GATI (569per cent), CEAT (454.55per cent), TVS MotorBSE 0.18 % Company (413.55per cent), Aurobindo Pharma (347.10 per cent) and Monsanto IndiaBSE 1.29 % (318 per cent).
Ramdeo is of the view that we will be able to find many multi-baggers in the market that is what is important; because, we are not buying indices, we are buying individual companies. So for buying good companies and investing, it is going to be a fantastic time, he concludes.
Most analysts expect market to remain bullish from this Samvat to the next, but the volatility is likely to continue amid uncertainty over rise in US interest rates and slowdown in global economy.
Most of the companies have rallied ahead of their fundamentals and a slight pull back cannot be ruled out, before the market resumes its uptrend. Avoid buying stocks without studying their fundamentals, suggest analysts.
"People would just casually buy stocks at this point of time after such a huge rise. They have to be very selective. It is a stock-picker's paradise even today and I am a strong believer of that," says Porinju Veliyath, MD & Portfolio Manager, Equity Intelligence India.
"I am seeing many potential multibaggers and when I look for values, I am still more convinced that the value is lying in the midcap and the small cap segment," he added.
Veliyath is of the view that most of them (midcaps) have gone three-four times on an average in the last one year. So there is huge money yet to be made in spite of the big rise and one thing that investors have to bear in mind is that there is a significant difference between a good company and a good stock, he added.
Here is a list of top midcap stocks which can give handsome returns in the next one year and if held for longer time durations could well become multibaggers:
Analyst: S.K. Goel, Director, Bonanza Portfolio Ltd
Some such midcap ideas are TV Today, Force MotorsBSE 0.52 %, Heidelberg Cement, Marico LtdBSE 1.30 %, Mindtree, Cadila, Suven Lifesciences.
Analyst: Yogesh Nagaonkar, VP, Institutional Equities at Bonanza Portfolio Ltd
IndusInd Bank: Target Price: 780.
NIMs expansion on the cards on account of strong CASA, rapid branch breakeven and efficient management of deposit book.
Suven Lifesciences: Target Price: 240.
Sustained base enhancement delivering robust revenues and expanding margins mainly on account of royalty supplies from Taro continuing till FY28 and 3 intermediate supplies to commence from FY16E onwards will bode well for the stock.
Marico Ltd: Target price: Rs 367.
Marico is witnessing higher demand and is headed for a faster growth as the GDP improves. Parachute hair oil will gain from conversion of loose oil to branded hair oil while softening of copra price will help Marico to gain further market share and will improve margins.
Mindtree Ltd: Target: 1314
Revenue has grown at an impressive CAGR of 26 per cent during FY11-14, while PAT has grown at a CAGR of 64 per cent during the same period. We expect this growth to continue as the economy is inching up.
IFB Industries: Target: 420
The improvement in operating profit margin, stable interest and reduced depreciation charges have helped PBT growth by 633 per cent in Q1FY15 compared to the corresponding quarter last year. Company has posted PAT of Rs17.35 cr in Q1FY15 vs Rs 2.13 cr last year same quarter. We expect higher sales considering bigger consumer spend in India.
Cadila Healthcare: Target 1628
We are expecting Cadila can register a sales growth of 19 per cent CAGR from FY14 - FY16E with revenues reaching the Rs.100 bn mark and PAT growth of 34.6 per cent CAGR from FY14 - FY16E to reach Rs.15 bn in FY16E.
(Views and recommendations expressed in this section are analysts' own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the stocks mentioned.)
No comments:
Post a Comment