ITC, L&TandSBIA­mong Top Picks Af­ter Bud­get

The Economic Times - - Smart -

Mum­bai: Bench­mark in­dices have re­couped all their losses in­flicted by de­mon­eti­sa­tion, but sev­eral stocks that did well dur­ing most of the 2016 are­strug­gling­tore­gaintheir­mo­men­tum. In­vestors thought the Bud­get last week would be the next im­pe­tus, but the gov­ern­ment chose to play it safe in terms of big bang an­nounce­ments. ET spoke to bro­ker­ages for their top picks af­ter the Bud­get:

₹ ₹ The com­pany’s key mar­kets are on the verge of turn­around and are ex­pected to grow at 8%. Key driver of this de­mand will be Andhra Pradesh and Te­lan­gana.

₹ ₹ SBI is poised to re­main ma­jor ben­e­fi­ciary of de­mon­eti­sa­tion. With higher use of dig­i­tal mode of trans­ac­tion, grad­ual im­prove­ment in op­er­at­ing ef­fi­ciency, we ex­pect PAT growth at 45% CAGR in FY 2016-18E.

₹ ₹ As 50 % of bor­row­ers are gov­ern­ment em­ploy­ees, the com­pany ex­pects sig­nif­i­cant growth as a re­sult of sev­enth Pay Com­mis­sion dis­burse­ment.

₹ ₹ Strong growth seen in do­mes­tic busi­ness due to its lead­er­ship in acute ther­a­peu­tic seg­ment.

₹ It has seen im­proved prof­itabil­ity backed by turn­around in E&P seg­ment; strong or­der book lends earn­ings vis­i­bil­ity. ₹ ₹ The com­pany will ben­e­fit from the gov­ern­ment’s fo­cus on agri­cul­ture.

₹ ₹ Siemens has an asset-light busi­ness model in rolling stocks. Thereby, in­creas­ing the prospects of new or­ders with high prof­itabil­ity.

₹ ₹ It has a ce­ment plant ca­pac­ity of 7 mtpa in the re­gion where the gov­ern­ment has an­nounced low-cost hous­ing. Also, af­ford­able hous­ing get­ting an in­fra­struc­ture sta­tus will ben­e­fit the firm.

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