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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Diwali 2011 Picks (click on company name -link below for details)
(click on company name -link above for details)
The economic turbulence, persistent inflationary pressure, higher interest rate scenario and scam
hit government were unable to build enough confidence in India Inc this year. FIIs have been net
sellers to the tune of Rs 3,010.3 crores year to date after net inflows of Rs 1,40,497.2 crores in
2010. The key indices have been trading in a range for past three months now with hopes of
touching the previous highs still a far fetched dream.
With the BSE Midcap index trading at 10x and 8.4x its FY12E and FY13E earnings, valuation look
reasonable. However, with high interest rate scenario still persisting, most of the mid cap
companies which had taken high debt are seeing their profits reeling under pressure due to high
interest costs. As per data, interest cost of companies under BSE Midcap index has gone up and
form a significant 18.1% of sales in Q1FY12 as against 15.4% in Q1FY11. Apart from the above
fact, raw material cost inflation is a known reality now which is keeping margins under check.
Thus, the time might not look suitable enough to scout for Mid/Small caps but we all know that
these set of stocks have potential to multiply, albeit with the risk element involved. We have
taken bottom-up approach in identifying few types of scrip and have also included companies from
our previous suggested universe.
Few points which we have kept in mind in the identification process are:
1. Mid Cap/ Small Cap stocks
2. Beaten down scrips with attractive valuations (PE bands)
3. Diversified sectors
4. Our previous Lighthouse coverage
5. Reasonable or calculated risk (higher margin of safety) & maximum returns
6. Turnaround stories
7. Reasonable return expected in one year period etc.
Given below is the list of 15 stocks which we believe have potential to deliver superior returns in a
span of one- year. Hope you all will find it useful.
Sr.No Company Sector
1. Arshiya International Logistics
2. Bajaj Electricals Consumer Durable
3. Cinemax Entertainment
4. DQ Entertainment Entertainment
5. DCB Banking
6. Educomp Solutions Education
7. Gitanjali Gems Gems & Jewellery
8. Godrej Properties Real Estate
9. Hinduja Ventures Diversified
10. HSIL Sanitaryware
11. Innoventive Industries Metal Products
12. Micro Technologies Information Technology
13. Nilkamal Plastics Plastic Products
14. Pidilite Industries Specialty Chemicals
15. Sintex Diversified
Happy Investing!!
Team Wealth Research
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Diwali 2011 Picks (click on company name -link below for details)
- Arshiya International ltd ; Target – Rs 210
- Bajaj Electricals ; Target – Rs 240/300
- Cinemax India ; Target – Rs 45/60
- Development Credit Bank ; Target – Rs 55
- DQ Entertainment; Target – Rs 50/60
- Educomp Solutions ; Target – Rs 450
- Gitanjali Gems; Target – Rs 480
- Godrej Properties; Target – Rs 840
- Hinduja Ventures;Target – Rs 500
- HSIL; Target – Rs 240/280
- Innoventive Industries ; Target – Rs 120
- Micro Technologies; Target – Rs 180/210
- Nilkamal Plastics; Target – Rs 300
- Pidilite Industries; Target – Rs 190
- Sintex Inds ; Target – Rs 180
(click on company name -link above for details)
The economic turbulence, persistent inflationary pressure, higher interest rate scenario and scam
hit government were unable to build enough confidence in India Inc this year. FIIs have been net
sellers to the tune of Rs 3,010.3 crores year to date after net inflows of Rs 1,40,497.2 crores in
2010. The key indices have been trading in a range for past three months now with hopes of
touching the previous highs still a far fetched dream.
With the BSE Midcap index trading at 10x and 8.4x its FY12E and FY13E earnings, valuation look
reasonable. However, with high interest rate scenario still persisting, most of the mid cap
companies which had taken high debt are seeing their profits reeling under pressure due to high
interest costs. As per data, interest cost of companies under BSE Midcap index has gone up and
form a significant 18.1% of sales in Q1FY12 as against 15.4% in Q1FY11. Apart from the above
fact, raw material cost inflation is a known reality now which is keeping margins under check.
Thus, the time might not look suitable enough to scout for Mid/Small caps but we all know that
these set of stocks have potential to multiply, albeit with the risk element involved. We have
taken bottom-up approach in identifying few types of scrip and have also included companies from
our previous suggested universe.
Few points which we have kept in mind in the identification process are:
1. Mid Cap/ Small Cap stocks
2. Beaten down scrips with attractive valuations (PE bands)
3. Diversified sectors
4. Our previous Lighthouse coverage
5. Reasonable or calculated risk (higher margin of safety) & maximum returns
6. Turnaround stories
7. Reasonable return expected in one year period etc.
Given below is the list of 15 stocks which we believe have potential to deliver superior returns in a
span of one- year. Hope you all will find it useful.
Sr.No Company Sector
1. Arshiya International Logistics
2. Bajaj Electricals Consumer Durable
3. Cinemax Entertainment
4. DQ Entertainment Entertainment
5. DCB Banking
6. Educomp Solutions Education
7. Gitanjali Gems Gems & Jewellery
8. Godrej Properties Real Estate
9. Hinduja Ventures Diversified
10. HSIL Sanitaryware
11. Innoventive Industries Metal Products
12. Micro Technologies Information Technology
13. Nilkamal Plastics Plastic Products
14. Pidilite Industries Specialty Chemicals
15. Sintex Diversified
Happy Investing!!
Team Wealth Research
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