SHAREKHAN DIWALI PICKS
A leading manufacturer of specialty chemicals and pharmaceuticals with a global footprint. Strong growth prospects over FY2018-21E with expansion in product portfolio. Large order worth Rs 4,000 crore from two global clients enhances new order visibility.
Depreciating rupee, capacity expansion, and operational efficiencies to drive growth in double digit. No pending regulatory risk, high valuation re-rating chances due to better than expected growth.
Demerger of branded retail and engineering businesses will unlock value for investors. Valuation attractive post-correction with triggers for re-rating through value unlocking.
Step up in investments in building digital competencies would help Infosys in driving earnings momentum.
Consistent performer in business growth, profitability and asset quality over several years. Merger with Bharat Financial will be value accretive for bank. Well-capitalised, strong management to lead market share gain.
Ramp-up of the downstream projects would drive margins and earnings for the core businesses of refining and petrochemical. Revenue market share gain in telecom to improve JIO financials; retail business to witness high double digit earnings growth.
Larsen & Toubro
Focus on profitable growth and increased ROE. Has started the year with strong order inflow
Sixth largest IT services company in India; among the top-20 IT service providers globally. LTI’s prudent strategies have benefited it in gaining market share in large accounts and new logo wins. Focus on large deal wins and deepening relationships with top clients would help LTI to reap rich dividends.
Introduction of technologically advanced products will sustain trend of outpacing domestic industry. Entry into new markets and increasing share of business in existing overseas markets to fuel export growth.
Innovation, distribution enhancement and operating efficiencies to drive double-digit earnings growth. Increase in scale of adjacent categories and international business will add flavour to the earnings in the long run.
Largest QSR play with 1100+ outlets in India. Shift in focus to consumer from store addition would drive order backlog giving visibility over two years.
With NPA cycle peaking and lesser completion from PSU banks and NBFCs, ICICI Bank has opportunity to gain market share. The large retail base will help growth, profitability as interest rates rise.