RIL, L&T top New Year stock picks
MUMBAI: Reliance Industries, L&T and Minda Industries, Cholamandalam Investment and Finance Company (CIFC) and KEC International among others have been recommended as the ‘New Year Stock Picks’ for 2020 by a leading brokerage.
An Axis Securities’ report recommended stocks of firms like Reliance Industries, L&T, Cholamandalam Investment and Finance Company (CIFC), Minda Industries (MIL) and
KEC International amongst others as the ‘New Year Stock Picks 2020’.
Axis Securities in investment rationale on RIL said: “Reliance’s (Petchem) execution of projects like ROGC, petcoke gasifiers, ethane imports, polyester expansion, coker expansion and downstream integration are expected to fetch higher gross refining margins and petchem margin than historical levels in an accelerating global growth and IMO environment.
“In case of digital business, with a subscriber additions of around 8 million per month and 99 per cent coverage, R-jio continues to focus on market share gains, while recent announcement of tariff hike is expected to drive margin improvements.”
“The new tariffs being at a discount to competitors would maintain Rjio’s competitive advantage. The Ebitda margin will expand in the long-term due to operating leverage in wireless, launch of high-margin enterprise business and reduction or removal of interconnect charges in the near future,” it said.
On L&T, the brokerage said, “L&T’S strong execution has led to revenue growth of 13 per cent at Rs 66,196 crore in H1FY20. Revenue growth was largely led by hydrocarbon, heavy engineering and services business.”