The Hindu accounting year began with an upgrade from global brokerage Goldman Sachs which said India is expected to see “the best structural growth prospects in the region” with mid-teens earnings growth over the next two years.
The market’s strategic appeal, particularly given its largely domestically driven growth, offers investors a wide array of alpha-generating themes, including make-in-India, largecap compounders and midcap multibaggers, Goldman said.
Here’s what Dalal Street’s top 5 market moguls say on money-making opportunities in Samvat 2080:
Sunil Singhania
We think there is still merit, particularly in some of the larger second-tier banks. We are seeing performances on the fundamental side in terms of their NII, operating profit, and PAT growth. Their ROEs are now comparable to some of the larger banks and the asset quality is spic and span. We would be more constructive on the larger second-tier banks at this point in time and the pack of PSU baskets is not very expensive. Fundamentally, we are on a good trajectory and we would be more inclined towards being constructive than the PSU basket in general.
Sanjiv Bhasin
I have stuck my neck out at Rs 11-12 for Idea. That is a no-brainer. It will double from here. Put your money in Vodafone-Idea, I am very sure you will get Rs 22-25; it is a slightly higher risk play for most people but the underground changes are humongous. Suzlon surged from Rs 8 to Rs 40. This is going to be a doubler from here.
Rahul Chadha
We are seeing a great time for the investment cycle. So industrials should do well. We should see an end to the underperformance from banks and some of the other cyclicals like real estate would continue to do well. A big surprise this year has been despite rates being high, real estate doing well and I think that momentum continues. Outside that, autos, and commodities would be ones to look at.
Vinit Bolinjkar, Head of Research, Ventura Securities
Zomato has a well-established business model. Any existing competition that was coming through was not there. Dunzo has fallen off. So, the Reliance weight and what if they enter the segment, how it would do, is no more a challenge to Blinkit. Blinkit has broken even and Zomato and Swiggy are in a veritable duopoly business, growing very well. Profitability is established and there is a long runway ahead of compounding growth. So, I believe the stock should do well in the next three to five years.
Rajeev Thakkar, PPFAS Mutual Fund
The four-wheeler space looks interesting in autos. So, while entry-level cars have not been doing too well, the selling price per car has been going up and again margins are improving. Right now, the mid-to-premium segment is doing better than the entry-level vehicles. But soon enough you will probably see demand coming back to the entry-level as well. So, four-wheeler space is where we are invested in.
(As told to ET Now)
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)