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Sandip Raichura's  Instablog

Sandip Raichura
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Promoter and Director at Castanea Wealth Management , Mumbai (India), a recently launched outfit to promote safe investing using sophisticated / alternative strategies among HNIs. Aspire to grow Castanea Wealth into an organisation of wide repute. Earlier, Headed various Wealth Management... More
  • Stocks You Wont Find at Macy's! 0 comments
    Nov 26, 2011 5:16 AM

    A large range of stocks have been battered over the past couple of weeks as Indian markets took a turn for the worse. However, some names stand out as a long term investor's dream bets and if one isnt worried about markets too much, some stocks are begging for attention at current prices.

    A Top 5 on the "India 2012" shopping list should definitely have :

    1) INFY - Battered as it outperformed earlier, Weak on news of a regulatory issue in the US and a clarification on revenue guidance leading to weakness which we consider overblown vis-avis the IT index

    2) HDFC Bank - Hung on as long as it could but finally gave way last week, High margins coming under threat from increasing competition seen as rationale - Again, in our mind, a gem of a stock for the long term investor at current levels

    3) ICICI Bank - Cyclical weakness, on par results and lowering of weightage on the MSCI led to extra normal weakness - our analysis points to it being available at a very deep discount to its competitors at current levels.

    4) L&T - Bellwether stock for the Indian capital goods industry and a key beneficiary of future investment recoveries - Sharp correction much higher than markets as muted order flow, general weakness in capital goods etc has led to extremely attractive prices. If the India story exists, L&T is a definitive pick

    5) M&M - Again, an extremely sharp correction post some muted results and overall markets- Key beneficiary of the Indian Growth story, launching innovative products over the next 2 years and has deep inroads into rural India. Focused player with strong margins.

    These are stocks that possibly also make for a balanced portfolio with a combination of high and low betas, exposure to international as well as domestic growth recovery and exposure to pure domestic plays. We do believe Indian markets can move lower hence a hedged / market neutral exposure to these stocks is advised.

    (And we dont believe Macy's could have matched these discounts on Black Friday!)

     



























     

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