13 Stocks you can count on : IIFL



The Lucky 13

The second half of 2012 has brought hope of a promising 2013 for equities. Also, with 2012 behind us, the supposed ‘end of the world’ predictions would hopefully have been put to rest. Pessimists though, always manage to find a bagful of excuses to remain fearful and depressed. Doomsday predictors may turn to the so called ominous number 13 in the New Year. However, you may be surprised to know that ‘13’ is considered lucky by many. In reality, it’s a case of seeing the proverbial glass ‘half full’ or ‘half empty’. We see good reason to be hopeful for equities in 2013. Although there are headwinds to the India story, the positives will likely outweigh negatives in the coming 12 months. We believe government action will continue. The worst looks over for the INR and global growth and easing policies will support portfolio flows into India. A key market trigger is the peak out of the interest rate cycle. We expect a Repo rate cut of 25 basis points in the January 2013 review meet. There is a case for a 75-100bps rate cut in 2013. Nifty valuations are reasonably placed at 14.5x FY14E and the earnings downgrade momentum is waning. We recommend 13 growth stories for 2013 and beyond, in our special theme report titled ‘The Lucky 13’.

Wishing you and your loved ones a Happy and Prosperous New Year!

Buy recommendation summary

CompanySectorCMP (Rs)18-month Target (Rs)Upside (%)FY12-15 PAT CAGR (%)P/E (x) FY15ERoE (%)EV/EBIDTA (x)
DEN NetworksMedia20029045112.819.313.67.3
Dr Reddy'sPharma1,8342,35828.621.813.226.88.1
Financial TechIT1,1381,51032.7(18.7)*16.610.418.8
Petronet LNGOil & Gas15820831.912824.15
United SpiritsBreweries1,9532,40022.968.531.59.717.7

*FY12 included a one off large stake sale of MCX holding of Rs2.5bn
** Calendar year ending.

CompanySectorCMP (Rs)18-month Target (Rs)Upside (%)FY12-15 PAT CAGR (%)P/BV (x) FY15EROA (%)ROE (%)
HDFC BankFinancials68585024.
ICICI BankFinancials1,1591,50029.423.51.71.721.7
LIC Housing FinFinancials29739031.325.21.71.821.5
Shriram Trans FinFinancials7549502611.41.82.518.6

Source: India Infoline Research


Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • www.investchips.com never collects any personal information of visitors.