Yesterday some body was keen to invest in the markets and wanted to know about my portfolio.
I have given him the list of Stocks that should perform during 2014 based on my small analysis & my own justification it may differ for others and I will not talk about numbers too 🙂
- Aurobindo Pharmaceuticals: I am expecting that this company to achieve its revenue and see a Compounded annual growth rate of 15%. It will do well in US.
- TCS: The Company’s well-balanced portfolio across services and geographies, and strong leadership. Deal wins, hiring trends and management demand commentary remain encouraging.
- HDFC BANK: They have (1) floating provisions (credit cost comfort), (2) Open efficiency (offset growth pressure) and (3) Superior liability franchise.
- ICICI BANK: ICICI’s domestic book growth has improved, but achieving management guidance of 20 per cent growth in the advances book looks challenging.
- 5) ITC: factors in (1) lower margins in paper business, (2) delayed recovery and lower margins in hotels and (3) flat cigarette volumes in FY14 and 4.8per cent volume growth in FY15.
- Cipla: Could be a dark horse Copal’s growth has lagged in the past due to domestic restructuring and rationalization of low-margin business.
- CAIRN INDIA : Cairn India is one of the preferred ways to play the twin macro themes of higher crude price and weaker Rupee.
- JB Chemicals: JBCL is the beneficiary of new pharmaceutical pricing policy implementation in domestic market. Company’s 50 per cent product portfolio had shifted from old cost based mechanism to new average pricing mechanism.
- LUPIN: A rich US generic pipeline (116 ANDAs pending), strong domestic formulation franchise and presence in key markets differentiate Lupin’s profile with peers.
- COAL INDIA LTD: 1) strong domestic coal demand; 2) monopoly in coal production in India; 3) ASP (Average selling price) significantly lower than global prices—potential for price hikes, and 4) one of the lowest cost producers globally.
Caveat emptor: The valuation might not be cheap for the above and Indian political scenario in the next year would play a major role.
Please also be aware I may or may not hold the above stocks.