Enam’s master stock-picker Nandan Chakraborty has identified several stocks that he claims are high conviction bets in a volatile environment.
Enam claims that the select stock picks in interest-rate sensitives (Banks) and domestic consumption will outperform as compared to expensive stocks in the defensives (FMCG) and global-vulnerables (Metals). It is also pointed out that policy cues will drive other sectors
The “high conviction” stock bets are stellar stocks like Reliance Industries, Bharti Airtel, State Bank of India (SBI), JSPL, Glenmark, Jain Irrigation, Redington and Prestige.
High Conviction Stock Picks
| Mkt Cap | CMP | Target Price | Upside | FY12e P/E (x) | FY13e | |
| Company | (USD bn) | (Rs) | (Rs) | (%) | ||
| Reliance Inds | 55.9 | 773 | 1,155 | 49 | 10 | 10 |
| Bharti Airtel | 33.3 | 397 | 490 | 23 | 23 | 15 |
| SBI | 31.5 | 2,250 | 2,650 | 18 | 1.3 | 1.2 |
| Jindal Steel & Power | 10.5 | 512 | 701 | 37 | 10 | 9 |
| Glenmark Pharma | 2.0 | 331 | 391 | 18 | 13 | 14 |
| Jain Irrigation | 1.4 | 169 | 222 | 31 | 17 | 12 |
| Redington India | 0.8 | 94 | 128 | 36 | 13 | 11 |
| Prestige Estates | 0.8 | 114 | 186 | 63 | 14 | 11 |
Defensive Stock Picks
The “Defensive” stocks in Enam’s portfolio are low beta stocks with valuation comfort such as Coal India, Sun Pharma, Power Grid, Bajaj Auto, Hero MotoCorp, BoB, Grasim, Cadila, Oracle, Godrej Consumer, Coromandel and GSPL.
| Mkt Cap | CMP | Target Price | Upside | FY12e P/E (x) | FY13e | |
| Company | (USD bn) | (Rs) | (Rs) | (%) | ||
| Coal India | 53.8 | 386 | 372 | (4) | 14 | 13 |
| Sun Pharma | 10.9 | 481 | 570 | 18 | 22 | 17 |
| Power Grid | 10.5 | 103 | 120 | 16 | 15 | 13 |
| Bajaj Auto | 9.3 | 1,460 | 1,640 | 12 | 14 | 13 |
| Hero MotoCorp | 8.2 | 1,858 | 1,941 | 4 | 16 | 14 |
| Bank of Baroda | 7.3 | 840 | 1,000 | 19 | 1.4 | 1.2 |
| Grasim Inds | 4.2 | 2,098 | 2,758 | 31 | 7 | 6 |
| Cadila Healthcare | 3.9 | 860 | 1,124 | 31 | 21 | 17 |
| Oracle Financials | 3.6 | 1,962 | 2,608 | 33 | 15 | 14 |
| Godrej Consumer | 3.0 | 416 | 475 | 14 | 24 | 19 |
| Coromandel Intl | 2.0 | 324 | 400 | 24 | 14 | 12 |
| GSPL | 1.3 | 101 | 120 | 19 | 10 | 10 |
The “Very high risk-reward” stock bets are stocks like Power Finance Corp, Rural Electrification Corp (REC), JSW Energy, Crompton, JP Power, Suzlon, Pantaloon and Aurobindo which offer very high upside, with above normal risk.
Enam’s High Conviction Stock Picks
[download id=”246,235,236,159″]
