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Sudip Bandyopadhyay, Inditrade Capital stock recommendations

Posted: Sun Sep 09, 2018 9:31 am
by Srilata Rao
Sudip Bandyopadhyay, Group Chairman, Inditrade Capital, has recommended following stocks.

pharma definitely is a good bet.

We have been positive for some time on the pharma sector and this is one sector where investors should start moving money definitely. There are always some uncertainties with pharma companies because of the regulatory action and the consequences thereof, like we have seen in Sun Pharma today.

But our strategy has been very clearly to buy a basket of pharma companies so that you avoid the vagaries of individual company related regulatory action. We have been recommending a basket buy in pharma which includes Sun, Aurobindo, Natco Pharma, Cadila and Torrent Pharma.

For an investor in a volatile market with depreciating currency, pharma definitely is a good bet. It has not performed as a sector for quite some time. The valuation looks attractive. As you rightly pointed out US business is improving and to a great extent the regulatory action is also behind the industry. Most of the companies have tried to get their act together. Yes, there may be sporadic action here and there from US FDA but by and large things have improved significantly from what it was couple of years back

bullish on auto

We have been bullish on auto. We have been particularly bullish on the commercial vehicle segment and Ashok Leyland is one company on which we have been recommending a buy. The commercial vehicle cycle has clearly turned and that ensures that companies like Ashok Leyland continues to outperform the expectations. It happened in the first quarter of the current fiscal. They came up with excellent results. Post that. there was a bit of a correction in prices due to that government changing the axle load factor but that was a temporary blip.

The larger issue is the vehicle scrappage policy which is being circulated and which is being talked about. It is a matter of time before the vehicle scrappage policy comes and that policy is going to help companies like Ashok Leyland in a big way. We have to keep that in mind. You talked about environment-friendly vehicles and electric vehicles. Ashok Leyland in the commercial vehicle space is working on that and they have the capacity to deliver electronic vehicles as well and that is excellent. Also, they have started getting a lot of export orders including in double-decker buses where they have the skill sets. The valuation after correction looks attractive and we definitely recommend a buy there.

In the two-wheeler space, Hero MotoCorp is definitely a stand out with the rural market getting a lot of attention as this is an election year. Farm income is expected to increase significantly with good monsoon. Hero with its outstanding reach in the rural market should benefit and they should be the outperformers amongst the two-wheeler companies. There has been some announcements in Bajaj regarding their capacity to deliver electrical three-wheelers and for that they will not require any licenses. They are expecting large sales and they have got the export market working for them. It is a good company to buy into but between the two-wheeler companies, we will go for Hero MotoCorp.

Titan is a fantastic company.

Some of the consumption-related stocks which have been beaten down and which we believe should be in investors’ portfolio are the ones where we are recommending a buy or hold. Titanis a fantastic company. But the stock has been beaten down in recent past. It has corrected significantly from where it was and their core business is doing fantastically well. With the onset of the festive season, things are going to improve further from here. The spectacles and watch businesses have started performing well. Also, in jewellery business, Titan benefits from impeccable credibility. Titan is an invaluable ingredient in an investor’s portfolio and at this kind of price, it is a good buy.

Re: Sudip Bandyopadhyay, Inditrade Capital stock recommendations

Posted: Sun Sep 09, 2018 4:02 pm
by Pee Vee
Not sure about Titan. However the tip regarding Pharma and Auto stocks is a good one.

Re: Sudip Bandyopadhyay, Inditrade Capital stock recommendations

Posted: Sun Sep 16, 2018 6:12 pm
by Srilata Rao
Titan is a great wealth creator over the years.