2017 has truly been a good year for equity markets in India although globally other markets have fared even better, but for CY 2018 investors need to tone down their expectations. Top five stocks which you think could give multibagger return in the next 2-3 years?
In our view CY 2018 could be the year of stock specific stocks and we believe that investors with more than two-year time horizon could end up doubling their money in the following five stocks.
Action Construction Equipment
Action Construction has a virtual duopoly in mobile cranes with significant market share. It is a perfect proxy to play the capex recovery theme in India both with respect to road construction as well as farm equipment.
CDSL
It is a classic duopoly with a unique business model having a predictable double digit revenue growth as well as predictability in compounding earnings at a CAGR of 20 percent.
Superior gross margins of 55 percent coupled with multiple upside triggers makes the depository a unique choice in the fast growing financial services space.
Exide has a duopoly in batteries segment. An underperformer within the sector is at the cusp of an inflexion point as the GST regime coupled with various initiatives to wrest market share from peers begin to propel this debt free entity with a strong brand pull to higher levels.
Raymond
The Rs 6,000-crore entity is making rapid strides in its branded apparel segment given its power brands as the disruptions on account of GST is now behind.
And value unlocking from its surplus land in Thane coupled with planned initiatives on non-core business as well as other new age business could in our view propel the company towards the next leg of growth.
UPL
Large diversified fully integrated agrochemical player with global footprints backed by huge distribution network is in our view perfectly positioned to leverage on its pool of product exclusivity and product registrations.
Gross margins of more than 50 percent with healthy return on equity of 23 percent makes UPL our pick to play the global agro chemical theme.
MORE WILL UPDATE SOON!!
0 comments:
Post a Comment