With the onset of Acche din in the stock market for all
types of investors, it is time to focus on Acche stocks which will also ensure
that Acche din keep going. So here are my picks:
With the division of Andhra
into 2, expect construction activity of all types to start picking up there.
And with Modi sarkar trying to improve things for the infra companies, keep an
eye on the likes of IVRCL, GVK, GMR
among the most common ones besides a host of small names. However, don’t expect
them to double overnight from here, though IVRCL has already doubled in the
last 1 month and the other 2 also have run up quite a bit. Over a period of
time, they should do well. However, considering the dizzying heights the
markets have touched, more on hope than any real things on the ground, it might
be prudent to spread your money over a period of time to benefit the most. Also
remember that the budget is just round the corner. As has been seen, there will
be bouts of profit booking occasionally in some of these scrips, at which time
an entry can be made.
On the Infra side, again
with Gadkari, Mumbai’s flyover man, at the helm, there should be a pick-up in
road construction activity. And with good friend Gadkari running the show,
Mhaiskar of IRB Infra should rightly feel pleased. So this would be a good time
to board the IRB Infra train.
Another one in the same league is IL&FS
Transportation Networks, though for different reasons. With parent
IL&FS, a known infra major, gearing up for putting things in shape, this
also should be a beneficiary. And in this effort, its Spanish JV with Elsamax
should certainly come in handy. Not only can they have access to better
technology, but also participate in orders across the border with them.
And with Modi at the helm,
can the Gujarat gang of companies be far behind? Already Adani Enterprises has doubled from where it was in April. But
considering the diverse businesses it is in, a favorable environment should
benefit it. And other Adani companies also have jumped quite a bit. While Adani
Power has run more on sentiments than fundamentals, Adani Ports has not. With Modi sarkar’s stress on exports, ports
should certainly get a leg up. Adani Ports will certainly merit attention but
among the other 2, Gujarat Pipavav,
with an MNC parent, should also reward its shareholders. Already it has doubled
from where it was a few months back, and not only because of the election
results. Its last quarter results were pretty good too. And they can only
improve with a favorable environment in place. The dark horse here could be
Essar Ports. Though it will also ride the infra wave along with the other 2,
any additional triggers such as delisting buzz should only add to the zing. But
keep in mind that Essar group is not known to be investor friendly. This time
though they may not have much control on the price front with the environment
also taking the scrip upwards (they pulled a fast one on Essar Steel
shareholders when nobody wanted to touch steel stocks and they could easily
convince investors to dump Essar Steel at a throwaway price. Now they are
laughing their way to the bank.
With a separate ministry/dept.
for renewable/non-conventional energy, keep an eye on Orient Green which specializes in exactly this. Also Suzlon can be a direct beneficiary, if
it is able to bring its debt to manageable levels in the coming weeks/months.
With the govt. deciding to
allow FIIs/FDI in Insurance, Max India has already jumped. However, AB Nuvo has
still not joined in the fireworks. Even w/o the Insurance trigger, this is 1 scrip
which has so many diverse businesses that it can only generate good returns for
its shareholders once it starts unlocking values in these businesses.
And if you still have money
left after buying all of the above stocks, buy the tried and tested blue-chips
like ICICI Bank, L&T and Axis Bank among others.
