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Stock
markets in India have been scaling new peaks in the last few weeks. It began
with Nifty50 topping 16,000 on August 3, sprinting to 17,000 on August 31, and
has now moved past 18,000 ahead of Dusshera – with the addition of the last
1000 points being the second-fastest since its establishment. As Diwali is just
a couple of weeks away,we
suggest these 4 stocks to buy ahead of the festival for a period of 1 year:
HINDUSTAN UNILIVER
Hindustan
Unilever is India’s largest fast-moving consumer goods company, as a result of
its vast distribution reach and a tremendous portfolio of large brands. It is
the market leader in 80 per cent of its portfolio and in FY21 gained market
share in 84 per cent of its entire portfolio. It continues to display agility
over the last decade and has gained superiority amongst its peers.
With increased focus on premium products, host of
initiatives in the e-commerce market, recovery in the discretionary category,
premiumization, synergies from GSK Consumer Healthcare and leverage in its
digitalization capabilities, HUL is ensuring that
it remains competitive in the current dynamic environment. The management of
the company is confident of consistent double-digit EPS growth over the coming
decade.that it remains competitive in the current dynamic environment.
The management of t
Dr. Lal Path Labs Ltd
Dr.
Lal Path Labs Limited is engaged in providing diagnostic and related healthcare
tests and services nationally and internationally. The company has been
compounding its sales by almost 21 per cent over the last decade and has also
maintained a healthy ROE of 26 per cent over the same period. Along with the
pandemic-induced increased test volumes, the companies’ persistent focus of
service parameters and timely turnarounds have aided in achieving resilient
growth.
In order to increase its geographical penetration,
the company is also expanding its network of laboratories and collection
centers in West &South India. In addition,
the company is consistently working to strengthen its tech-enabled processes in
order to be future growth-ready.
CAMS
CAMS is the market leader with a share of over 70 per cent
of the total Mutual Fund AUM in a duopoly RTA market. It has outperformed the
MF Industry’s AUM growth by 3 per cent from Mar-14 to Mar-20 and maintained its
leadership position since 2005-06. The company also has a strong and consistent
financial track record of compounding sales and profit growth by 8 per cent and
13 per cent respectively over the last 10 years.
It also rewards its handsomely rewards its
stakeholders through a robust average ROE/ROCE of around 36%/52% respectively
in the last 5 years. Additionally, India has one of the lowest MF penetrations
globally with an AUM-GDP ratio of 12 per cent vs world average of 65 per cent,
this itself offers long-term growth potential for the overall MF and in-turn
for the RTA industry.
HDFC
HDFC Ltd
is India’s largest mortgage lender in the current environment and remains one
of the best real estate proxy play in India. With its nearly stable asset
quality performance during a period when other rivals in the housing and asset
financing sectors reported a large spike in stressed loans, the company has
surprised the market.
It has secured its position with access to
low-cost funds, a solid ALM position, and comfortable leverage. Sufficient
balance-sheet provisioning also provides a cushion from any asset quality
surprises.