29 December 2016

Geojit BNP Paribas: top picks for 2017

Please Share:: Bookmark and Share �� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
-->

Geojit BNP Paribas
Pidilite Industries Target Rs 770
Pidilite Industries is a pioneer in consumer & speciality chemicals in India having a dominant position in the adhesive and sealants business in India with market share of 70%. Robust distribution network and continuous focus on developing new and innovative products will further aid in augmenting market share and strengthen its brand equity. As a result, Pidilite is a strong play on recovery in discretionary spending and thus, we recommend buy .

Havells India Target Rs 388
Havells is a leading player in electrical consumer goods with key verticals include switchgears, cables & wires, lighting fixtures and consumer appliances. Though the current liquidity crunch is expected to impact the company's consumer durables segment in H2FY17, but given the long­term benefit of shift from unorganised to organised segment, the future prospects are positive.

HDFC Bank Target Rs 1,387
HDFC Bank has a proven track record of higher than industry growth rate with best in­class asset quality and high profit margins in the past five years. We expect HDFC Bank to continue outpacing industry credit growth rate and factor 19% CAGR in advanc es over FY16­ 18E. Strong contribution from retail segment (50% of domestic loan book) adds strength to the loan growth outlook.Higher share of working capital and retail financing in total loan book reduces risk of any negative surprise on asset quality front.

Crisil Target Rs 2,609
Crisil, with a market share of around 60%, enjoys leadership position in rating business. It also provides research and risk & advisory services, which has reduced cyclicality in its revenue and profitability. Crisil has consistently outperformed the industry over the last 10 years and maintained strong RoE of 30%. Revival in global economy will support growth momentum in research business and measures from RBI to deepen the corporate bond market will give boost to the rating business.

Escorts Target Rs 345
Escorts, the third largest manufacturer of agricultural tractor is well­placed to benefit from demand recovery as a result of initiatives such as farm consolidation and farm machanisation, through recent product launches and strategic decisions to improve distribution channels. We believe, temporary slowdown in the rural demand is more than factored in at the current prices.

No comments:

Post a Comment