Home >>ACMIIL Home >> ACMFSL Home >> ACMRES Home >> Resume Status Home >> Apply Now Home >> Culture Home >> Current Opening Home >> Deenas World Home >> Faq's Home >> Financial Terms Home >> Five W’s of Investment Home >> Health Checkup Home >> Investmentz Online Home >> Management Team Home >> Media Corner Home >> NRI Center Home >> Register Now Home >> Research Home >> FAQ's Home >> Knowledge Support Home >> Why Investmentz Home >> Sitemap Home >> Career Home >> Gallery Home >> Feedback Home >> Disclaimer Home >> Privacy Home >> Services Home >> Tools & Platforms Home >> Investment Products Home >> About Us Home >> Contact Us Home >> Download Home >> Security Home >> My Subscription Home >> Retail Investors Home >> NRI Investors Home >> Institutional Investors Home >> Corporate Clients Home >> Bank Home >> Alternate Investment Fund Home >> Financial Planning Home >> Investment Advisory Home >>Portfolio Tracking


Change Font Size: A+ A-

Finding Returns Overall RATE RATE (3.00)

For the past five to six years, investors have been searching for an asset class with better returns. Surely, one can say that they must have found one now with equities presenting a promising picture.


We are bullish on the Indian equity markets considering the following outlook, where pros clearly overweigh compare to cons.








Indian economy and government


  • The new Indian government is looking more proactive so far in terms of making mid-to-long term policies by commencing work on the same to achieve the set objectives within logical timelines


  • The government is focusing on most of the sectors with more focus on the infrastructure and manufacturing sectors. It is making serious attempts to create a healthy environment to attract more investments and improve the business environment in India


  • Further, the government is moving towards getting rid of subsidies, which would allow it to reduce deficit. This would have a positive impact on the ‘India Investment Ratings’ in the next few years


India GDP


  • On overall consensus on India’s GDP estimates is around 5.5% to 5.7% for FY15, while GDP for FY16 is estimated in the range of 6.2% to 6.8%


  • A year back not many people were optimistic about growth above 5% but recent quarterly numbers have proved that economy is coming back in shape with GDP growing at 5.7%


Inflation and interest


  • Inflation is until now controlled with more steps from the RBI on the liquidity front. However, we feel that the government needed to put in more effort to match up with product demand – supply equations, mainly on the agriculture sector front. The current government looks promising to work on the same in the long term. The inflation numbers are descent enough as of now to continue with the neutral policy on interest rate front


  • Interest rates are not likely to move up in the near future, considering the slowdown in inflation growth. In fact, we may see reversal of rates in the coming years




  • India Monsoon – Overall deficiency is about 10%, which is encouraging after initial expectations of bigger deficit.











Trail P/E

Forward P/E


5.5 - 5.7%










17 - 18




  • Overall consensus on change in interest rate by Fed is unlikely until next year, which would help the markets sustain the ongoing momentum


  • The US Jobs data have reflected strong numbers, with some of the US states even moving towards the ‘fully employed status’


  • Overall global consumption scenario is satisfactory until now and it is moving upwards in most of the countries




  • Oil prices have moved towards multi-year a low, which is great news for India, a country with heavy oil imports and high outflow of foreign exchange. This would strengthen Rupee valuation



  • With NSE Nifty trail P/E quoting at around 21 times, it still might not be considered too overvalued with expectations of higher growth numbers in the coming quarters, as indicated by green shoots in the economy


  • Forward P/E is around 16 times, which could also be considered as safe levels to enter or remain invested into equities.




Indian economy and government


  • Although the government is going strong in terms of policy making, planning and implementation are the keys to overall success


  • With state elections round the corner, the government might not be able to take a few tough decisions on issues such as subsidies


Inflation and interest


  • Reversal of some of the factors such as oil prices or other agriculture prices might spike inflation, resulting in pressure on the RBI to change its stance on rates




  • The US equity market valuations are on the higher side along with some of the global markets


  • The US Fed might start with the tapering of its quantitative easing in the next three to six months, which might reduce liquidity in the global markets


  • War like situation in some parts of the world such as Russia, Ukraine, Israel, Pakistan, and Iraq


  • Some of the countries are still not recovering enough from the slowdown effects. We have seen that countries such as Brazil, Turkey, and Russia registered considerable slowdown in the recent quarters



Although there are few concerns relating to some of the countries mentioned above, the probability of the above concerns impacting the Indian markets looks unlikely. Overall, the Indian economy is expected to perform well, considering the positive momentum in the economy, with a few other economies suffering from GDP slowdown. India still remained immune to slowdown of outside world well supported by internal consumption and ongoing improvement in governance.


We believe for investors, it won’t be difficult to find above average returns in the coming two to three years from Indian equities.




Happy investing…


Manish Tawde

Product Research & Financial Planning Desk




Written by : manish tawde

Resounding victory raises high hopes on reforms Overall RATE RATE (5.00)

The Lok Sabha election results astounded the whole world, as the sweeping majority attained by BJP has scuttled the opposition benches to historically low figures. This raises hopes of the possible changes, which could signal a high growth path for the next few years. In this backdrop, one seriously needs to analyse the reforms undertaken by the Modi Govt in Gujarat, which seized the imagination of the voting public to hand over the ruling mandate to BJP at the Centre.


Following are some of the areas of reforms:




Contrary to popular belief that Modi was pro-industry, the policies in this sector dispel any doubts about his overall approach. More so, Agriculture is one of the pillars of Gujarat’s success due to the following reasons:

1. Reaching out invention to farmers by organizing Krishi Mahotsav, which connect him directly to agro scientists. in 2013 brought farmers across India together

2. Promotion of micro irrigations systems such as sprinklers and drip irrigation

3. Encouraging banks to lend money to farmers, which are to be farmer centric and crop centric. This reduced the role of private moneylenders and addressed issues such as farmer suicides

4. Agro universities encouraged for conducting research on increasing productivity

5. Organic farming encouraged, as it is the way forward

6. Called for 4-5 grassland zones to be identified in the country, which can help the farmers during drought or any other adverse condition   


All these above measures have ensured that Gujarat recorded the fastest growth in agriculture.


Roads, Power, and Water

Under a flagship scheme – Jyotigram Yojana, commissioned in 2006, the Gujarat government ensured 8 hours of electric supply for irrigation for all of Gujarat's 18,000 villages and round-the-clock domestic power supply that has covered up to 97 per cent of all villages. Good roads have enabled farmers with easy access to markets and resources to diversify into multi-cropping and dairy farming.

In the backdrop of these initiatives in Gujarat, suddenly, there seems to be possible solutions in the pipeline to the problem of inflation that the country is currently battling with, since the root of inflation has been food inflation, which has severe supply and logistic constraints that needs to be addressed urgently.



Land and incentives


One major aspect of physical infrastructure in Gujarat is the specific intervention by government for the industry. The state's consistent industrial growth has been largely due to government's policy of supporting big businesses through infrastructure and land availability.


The state also offers a significant advantage through privately run ports, which were liberalised right since 1995.


Replicating all the above at the national level would definitely be challenging but the decisive mandate that the party received will give it enough teeth to take some bold measures.


The stock market has already greeted this victory with a 7300 plus index, but given the high possibilities, the market could still have immense potential. Although an all-round participation is likely in the immediate short-term PSU banks, infra, and agri related companies, languishing PSUs, power, and related ancillaries could see some re-rating, which is already visible in the sharp rise in several of these shares.


Following are four such stocks we have identified to begin with, which we perceive possess high potential and many such stocks should follow.     


Hindustan Sanitary Ware (India), Ltd – growth acceleration likely


The company is a leader in India’s sanitary ware industry and ranks second in the container glass industry. Regular launching of new products in each segment and presence across the value chain and at all price points are the company’s hallmarks. Although the building products segment (BPS) has been doing well, the glass container segment (GCS) has been facing problems such as tough market conditions, high input cost, and overcapacity, which affect pricing power. Recent indication from the management suggests that operating margins for the BPS could go up by 150 bps in FY15 on the back of launch of premium products. The glass division could also reduce losses substantially and break even by the year-end on the back of improving offtake, cost cutting, and price increases. This could have a sharp positive impact on the bottom line for FY15. 

With the expected improvement in economy in the coming year, this stock could see further re-rating. A price target of Rs. 280 could be expected from current market price of Rs. 205.


Finolex Cables Ltd


Finolex Cables Ltd (FCL) is a leading manufacturer of electrical and telecommunication cables in India. In electrical cables, it has more than 10% market share. Almost 85% of FCL’s revenue comes from electrical segments (mostly B2B business). We expect recovery in infrastructure activities post general election with specific emphasis on the power sector, which would have positive impacts on the company’s growth.  The stock has already seen some interested buying in the past few months and the continued momentum could take the stock up to levels of 195.


Va Tech Wabag Ltd


Va Tech Wabag Ltd is a leading multinational player in the water treatment industry. The new government will have special focus on the water treatment industry at a time when our water resources are depleting rapidly. Measures such as rainwater harvesting, river linkages, water conservation, sewage treatment, and desalination projects will go a long way in tackling this looming problem. Hence, Va Tech Wabag would be the main beneficiary of this policy action. The company is in a niche segment where besides installation for big projects, it also derives large chunk of revenue from maintenance, which adds to its value immensely.


The scrip could be bought at every decline with a possible target of 1300.


Info Edge (India) Ltd


Info Edge India Ltd (Naukri), a leading Internet company, dominates the online recruitment market. Naukri.com’s traffic is more than twice that of other job sites. It has businesses in areas such as real estate (99acres), matrimony (jeevansaathi), and education (shiksha). Naukri.com’s owes its success to a mix of advertising and subscription-based revenue streams and a large customer base (~50,000 paid customers). Info Edge will benefit significantly from any improvement in economic growth, since higher economic growth will see hiring picking up. Turnaround in real estate activity will lead to material improvement in revenue growth and would drive margin expansion.


The scrip could be bought at current market price of 628 levels with a possible target of 800.


For more investment ideas and suitable portfolio for your risk profile send an email to retailresearch@acm.co.in.



Written By:

Equity Research Desk



Written by : blog admin

Today’s Poll

Today’s Poll
Will Nifty Hold 8500 Level till Diwali?

Most Read

Is Financial Compatibility the Key to a... by blog admin 05-Feb-2016, 00:00 Hours IST
How your financial goals help you in fi... by blog admin 17-May-2016, 00:00 Hours IST
Importance of striking the right balanc... by blog admin 20-Jan-2016, 00:00 Hours IST
SEBI Reg. Nos | BSE CM:INB 010607233 & Derivatives:INF 010607233 | NSE CM:INB 230607239 | Derivatives INF 230607239 & Currency Derivatives INE 230607239 | MCX SX INB 260607230 | Derivatives INF 260607230 and Currency Derivatives INE 260607230 | DP: IN-DP-CDSL-28-99 and Merchant Banking INM000010973.