Time is ripe to buy stocks – Don’t worry about corrections:
We are in a very structural uptrend of the market. India is in a sweet spot. We have a world-class leader today, a stable government, commodity prices coming down, interest rates and inflation going down. So there are a lot of ingredients added up.
There will be a market correction but not more than 3% to 4%. That will happen only if some real bad news comes in. It is difficult to say people missed the equity opportunity in India because they are not late. Yet, there is a lot of scope for them.
If you want to be apprehensive or be cautious, there are a lot of elements. But looking at the sheer fundamentals of companies and valuations, nobody has missed that and it has just started.
NIIT – very-very safely priced:
NIIT is a very good company. They have sailed through the bad times of the bad cycle of their business, the management is world class and they have placed the company in such a way that any emerging opportunity will be taken advantage of. Today at 900 crore, this is one stock which investors should bet on from a two, three, four-year perspective. It is very-very safely priced. The company is holding significant portion of the NIIT Technology and the balance sheet is very clean, the management is very professional and I am very bullish on it.
Dish TV – 100% gains expected in one year:
I have been buying Dish TV since the last year and it is an underperformer in our portfolio. Underperformance means that it has grown up only by 40% in the last one year, and midcap has shown growth at those levels. So, it is an underperformer only in terms of the way the markets have behaved.
Dish TV at around $1-billion valuation today is yet to report net profit numbers. So generally the perception is that people are waiting for the numbers and the people who have been holding it earlier have started selling it off. If somebody looks at the fundamentals of this company and its ability to create wealth in the future, Dish TV can go up by 100% from this level in the next one year.
Dish TV is a leader with around 28% market share in a country with 1.2 billion people. So there are industry leaders in the midcap and even in the small cap segment.
My confidence level on Dish TV is very high. It is near the bottom level, it is traded. So the margin of safety is very high for Dish TV.
Transport Corporation of India (TCI) – buy on dips:
TCI is a leading logistics company in this country while there is a huge growth ahead. At around Rs 1800 crore, TCI is a very good company to pick. Of course, it has moved from 60-70 in the one year to around 260 today, but I feel there is a lot of value left. There is no hurry to buy it today. There can be some small corrections coming up and you can buy it.
Zicom Electric Securities – market leader with huge potential:
Zicom Electric Securities is a small company but a leader in the industry. Zicom is growing at around 55% for the last four-five years. Even this year, the company is likely to report around Rs 1,200 crore of revenue and maybe Rs 70-80 crore of net profit and the market cap is around Rs 250-260 crore.
So there are such stories when it comes down from the top line companies, which are industry leaders and which can create a lot of wealth in this country in the coming years.
DLF – 100% gains expected:
DLF’s market cap was Rs. 18000 crore, and today it is around Rs. 26000 crore and this can even double from here in the next one year or may be 18 months’ time.
The company has strong fundamentals, and more than the SEBI order or the government attitude, the biggest challenge for it is the industry negatives. There is a lot of supply demand gap and huge inventory to sell.
There are clear indications that we are seeing a peaking out of interest rates in India. So this will help the real estate companies and DLF is definitely the leader. It can even go up by 100% from this level in the next one year to 18 months.