08 October 2010

Emkay: India Strategy: Not yet in bubble territory

Bookmark and Share


India Strategy
Not yet in bubble territory


n          Valuation comfort: Previous peak valuations were at 24.5x/20.4x 1FY/ 2FY EPS respectively; while current valuations are at 19.3x/16.1x 1FY/ 2FY EPS respectively
n          Mid caps have potential to appreciate
n          FII flow will dominate the market
n          Sectoral weightage: Oil & gas, Power and Telecom are losers while biggest gainer is Financial Services
n          New issuances can be absorbed by the market
n          Corporate results: upside in earnings already captured
n          Macro factors look quite favourable
n          Sector preference: Agri-input, Auto, Banking, Engineering & capital goods and Pharma

No comments:

Post a Comment