Super 6 Stocks by Dolat Capital

Super Stock

Dragged by the domestic political crises and global turmoil, Indian market continues to be volatile. Brokerage Dolat Capital feels that unless concrete action takes place at the structural level, market could face an uphill task to re-rate in a material way from here.

So, here are 6 preferred picks by Dolat Capital that you can buy for better gains this spring season.

Mahindra & Mahindra

Target: Rs 1050 per share

Rationale:

*Earnings driven by strong UV sales led by succesful new launches

*Macro headwinds continue to affect the demand in the tractor segment.

*Valuations attractive and subsidiairies adding significant value

NIIT Tech 

Target: Rs 385 per share

Rationale:

*Large deal momentum to drive quarterly deal additions to USD 100mn

*GIS and NITL recovery to support OPM recovery

*Growth broad based across verticals except for BFS

*Maintain outperformer rating among small cap stocks

YES Bank

Target: Rs 580 per share

Rationale:

*One of the key beneficiary of reversal of interest rate cycle. 62% of Yes Bank’s deposits
sensitive to bulk deposit rates which we expect to soften from 1QFY14

*No major asset quality threats, NPLs should remain one of the lowest in industry

*Expect 29% CAGR in net profit, second only to HDFC Bank

Union Bank

Target: Rs 290 per share

Rationale:

*Amongst few banks which saw improvement in asset quality

*Fresh non-performing loans (NPL) formations should trend downwards

*Net profit CAGR of 32% over the next two years, one of the highest amongst PSBs

Kajaria Ceramics

Target: Rs 272 per share

Rationale:

*Sustainable leadership position with high brand recall and strong distribution
network

*Moving towards outsourcing model to improve return ratios

*Short term consumption slowdown may hurt, but structural story remains intact

Page Industries

Target: Rs 3285 per share

Rationale:

*Jockey a strong brand in innerwear maekrt

*Management confident of achieving 25% CAGR in revenue.

*Focus is on expanding retail stores in existing cities

*Women and Leisure wear would drive growth.

*Estimate a revenue and PAT CAGR of 24%

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