Six High-Conviction Stock Ideas By KR Choksey

High Conviction Stocks Idea Attributes
• Company: a) Sound / resilient business; b) Consistent strong financials; c) High growth potential; and d) High return on invested capital
• Industry: a) Market leaders / Strong brand value; b) High growth opportunities; c) Strong entry barriers
• Management: a) Visionary Leadership; b) Strong & Effective Management; and c) High corporate access, including promoters and CXOs
• KRChoksey Differentiators: a) Analytics that predicts market movements; and b) High quality actionable research

(1) Bajaj Finance Ltd. Ticking all the boxes

Bajaj Finance Ltd (BAF) is the lending arm of Bajaj Finserv Ltd. It has a diverse set of product portfolio which is targeted towards meeting the changing consumer preferences.

(2) Nestle India Ltd. Sustained growth momentum and a higher focus on premiumization

Nestlé India (NEST) is the Indian subsidiary of the Swiss MNC Nestlé SA. NEST has a presence across India and manufactures products under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA. NEST operates in 4 categories- prepared dishes and cooking aids, milk products and nutrition, confectionery, and beverages.

(3) The Ramco Cements Ltd. Capacity expansion to drive sales volume and aid revenue growth

The Ramco Cements Ltd. is one of the prominent cement manufacturers in India with a total installed capacity of 21 mtpa. The company has five integrated cement units, six grinding units, one RMC plant, one dry mortar plant and wind farm division.

(4) Sun Pharmaceutical Industries Limited Strong growth across markets while specialty continues to drive growth Sun Pharmaceuticals Industries Limited, is the largest Pharmaceutical company from India (AIOCD AWACS with IPM share of 8.5%, June 22), the 4th largest specialty generic company globally, and the 3rd largest generic pharma company in the US. The company’s global specialty products sales (over 12 specialty products) now account for 13.8% of total revenue vs. 11.3% in Q1FY22 and 14.8% in Q4FY22

(5) Tech Mahindra Limited. Strong operating performance but with supply side pressure to impact the margin in the near term Tech Mahindra (TechM) is a Pune-based Indian multinational corporation, specializing in technology-based transformation. Company showed prowess in Network Services, Engineering Services, Platform based solution, Security, Digital Marketing, CX, BPS, IT and robust innovation strategy for driving innovation culture. With over 1,21,000 employees across 90+ countries, company is serving the needs of 1,000+ clients including several Fortune 500 companies.

(6) Vinati Organics Ltd. Ongoing capex to provide revenue visibility Vinati Organics Ltd(VOL) is a leading manufacturer of specialty chemical and organic intermediaries with a sustained market presence spanning over 35 countries in the world. Since its inception the company has evolved from being a single product manufacturer to having an integrated business model, offering a wide range of products to some of the largest industrial and chemical companies across US, Europe and Asia. VOL is the global market leader in manufacturing of ATBS and IBB, with a dominant market share of 65%. and leading manufacturer of IB and Butyl Phenols in India. The company has two manufacturing plants in Maharashtra.