STOCKS FOR SIP:The companies that have been considered for selection are the ones with a market capitalisation of at least Rs 250 crore. Among them, companies with year-on-year (y-o-y) net sales and net profit growth of more than 10 per cent for the last three years and the last two quarters were retained. From this list, only companies that were able to maintain or increase their operating profit margin (OPM) and operating cash flow in the last three years were kept. The remaining stocks were examined individually based on qualitative and quantitative measures.
1. Titan IndustriesTitan watches have built a strong brand and its diverse product range caters to masses as well as the premium segment, which is its success formula.
2. Bharti AirtelBharti Airtel is riding high on the overall growth of the telecommunication sector in India.
3. Bank of India (BOI)BOI is perhaps the fastest growing public sector bank in India.
4. EmamiEmami has created a niche in the market by bringing products for its consumers that combine modern production techniques and ayurvedic principles. Emami is reaching deep inside rural India, which will lead to volume growth. Modern lifestyle has increased the risk of chronic ailments and consumers will demand natural products backed by research.
5. Indraprastha Gas (IGL)The government's thrust on environment is putting more compressed natural gas (CNG) buses on road and rising fuel prices are prompting people to fit CNG kits to their cars. This is boosting IGL's CNG distribution business.
6. KS OilsIt leads the edible oil market in the north and north-eastern part of India through brands in mustard oil, refined oil and vanaspati. Its share in the Indian mustard oil market is 7 per cent. The company has also entered north and central India with an aggressive branding effort and greater retail push. Their backward integration will help improve the margins over sales.
7. MphasisMphasiS derives its revenues from application services, infrastructure technology outsourcing (ITO) and business process outsourcing that span industry verticals, such as banking and financial services, healthcare, transport and manufacturing.
8. HDFC BankHDFC Bank has seen a y-o-y net profit growth of over 30 per cent for the last 34 quarters and has maintained a high OPM of around 60 per cent during the same period.
Also, funds have dried up in the global markets—this will increase demand for credit from domestic banks. This means stable business in the future.
- BY RICHINLIFE...