According to the latest newsletter by Solidarity Investment Managers, if one wants to target a better return from the market, about 33% of the portfolio has to be invested in non consensus ideas which are out of favour at present. These are in companies facing some growth challenges at present or getting punished due to a strategic error, but with strong market positions/ability to correct errors
We argue Havells has been gaining market share in most categories over past several quarters. Moreover, we reckon it is well placed to sustain this trend on the back of recovery in consumption demand and real estate along with sustained industrial sector capex
With strong traction in export/domestic markets, new capex and expansion in margins, we expect the company to deliver a strong CAGR of 21% and 28% in revenues and PAT, respectively over FY24-FY27E. The lean balance sheet and strong cash flow generation will improve ROCE to 25.3% in FY27E from 22.5% in FY25E which will ensure the company commands rich multiple
Quess Corp Ltd (Quess) is India’s largest staffing/business services company with its business spread across staffing (WFM), facility management (OAM), BPO (GTS) and a platform (job portal Foundit). It is a leader in the flexi-staffing and facility management segment and is well placed to benefit from macro tailwinds like (1) formalisation of labour force, (2) proposed new labour laws, (3) push for creating a manufacturing hub through various PLI schemes, (4) creating internship opportunities, and (5) job generation in tier-2/3 cities
We reiterate our BUY rating on LTIM due to its superior offerings in data engineering and ERP modernization, positioning it well to capture pre-GenAI expenditures. We anticipate LTIM to outperform its large-cap peers and expect low double-digit CC growth for FY26. LTIM could have managed its top-level churn rate more effectively post-acquisition. Nonetheless, we believe the toplevel attrition rate might remain benign going forward.
The increasing share of equity in the overall AUM, driven by an anticipated higher CAGR of 30% in equity AUM vs. overall AUM CAGR of 24%, will help to mitigate the potential decline in yields. We expect scale benefits from new businesses (Alternates & Passives) to translate into higher profitability
Jindal Steel & Power (JSPL) is one of India’s leading steel producers. With crude steel capacity of 9.6 million tons per annum (MTPA) it has major plants located in Angul (Odisha, 6 MTPA capacity) & Raigarh (Chhattisgarh, 3.6 MTPA)
Shriram Finance (SHFL) offers a well-diversified product suite and has emerged as a strong player across all its product segments. It has demonstrated strong execution capabilities and asset quality resilience while navigating multiple credit and economic cycles
Kaynes Technologies (KAYNES) is one of the fastest-growing EMS companies in India, with diversified exposure to end-user industries across seven high-growth sectors. With ~62% revenue CAGR over FY21-24, the company is deepening its presence within existing sectors. Further, KAYNES continues to improve its margin profile (~15% in FY25E from ~9.7% in FY21) backed by a rising share of high-margin businesses
PAGE Industries (PAGE) is well-positioned to capitalize on India’s growing innerwear (9% of the apparel industry) and athleisure markets, aided by favorable macroeconomic trends such as rising incomes, urbanization, and a young population. The company holds a dominant position in the mid-premium innerwear segment, driven by its first-mover advantage, strong brand equity of Jockey, low-cost manufacturing, and a well-diversified product portfolio
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