26 December 2011

India’s Future Large Caps :: Morgan Stanley

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Cox & Kings

United Phosphorus

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India’s Future Large Caps
We have used a combination of quant and our
analysts’ opinion to filter Morgan Stanley’s best
mid-cap picks (market cap
Morgan Stanley’s coverage universe) on a 12-month
view. Our picks are: COXK, GESCO, HATH, IRB, JI,
MTCL, OBER, ONMB, PATNI, UNTP.
Over the long term, stocks down the cap curve tend
to outperform their larger brethren: Valuation and
performance make the case in favor of these stocks.
A combination of analyst opinion and quant: Our
quant technique combines institutional ownership,
consensus ratings, price momentum, earnings growth,
revisions, trading volumes, valuations and ROE to score
stocks. We overlay our analysts’ opinion on these
metrics to generate our best ideas.
In general, we prefer stocks that are:
• Unloved: Trading significantly below 200 DMA with
depressed trading volumes vs. history
• Under-owned: Rated poorly by the consensus and
not owned by institutions
• Undervalued: Valuations cheap in the context of
ROE versus history
• But with improving price momentum… Poor 12M
performance but rising 1M returns
• …and earnings estimate revisions not priced in:
Earnings estimates rising – but not share prices



Click link below for company details

Cox & Kings

United Phosphorus

click link above for company details

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