INVESTMENTS THEMES FOR NEW SAMVAT

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INVESTMENTS THEMES FOR NEW SAMVAT

As indicated in the previous block mentioning the time of caution in the market and as expected we witnessed a fairly moderate correction in the market  recently. Everyone is skeptical now having a question in mind whether the party is over or still some fuel is  left in this bull market. In my opinion, we are still in the bull market and the correction recently we witnessed is a typical bull market correction only.  However, the market is unlikely to move at such an unprecedented pace which has been experienced during the last 3 to 4 months. It is a time to reshuffle your portfolio and see the space where still a decent appreciation is possible.  Some theme wise recommendations are being given hereunder just to highlight the sectors where an investor may look for getting good returns.



EV Theme

India is likely to be one of the biggest EV markets for the next decade and Tata motors have already tightened their belt to capture the benefits of the EV theme.  Recently the Tata Motors have finalized a meaningful funding for their EV business and they are not likely to face any bottlenecks for fund requirements in their massive EV production program. Further, Tata Chemicals is all poised to go for the lithium-ion battery technology. Tata power is looking to set up EV infrastructure in the country. 


Recommendations:

  • Tata Motors

  • Tata Chemicals

  • Tata Power


Financial Theme

The Indian financial sector has surprisingly been coming out from the shocks of Pandemic. Many of the private banks have improved their asset class in the previous two quarters and a moderate credit growth has been witnessed. The shift of un-organized economy to organized economy has helped the Indian banking system immensely and the transaction cycle has been gaining momentum opening tremendous scope in the banking sector. We can foresee a moderate credit growth as we are seeing massive capex programs from the corporate sectors. As such the Indian Banking Sector is likely to grow at a massive pace.


Recommendations:        

  • Axis Bank

  • ICICI Banks

  • SBI

  • Federal Bank


QSR Theme 

The change in eating habits of the new generation have paved the way for

future growth of Quick Service Restaurants. 

Consumers having better options also for food delivery systems opening tremendous scope for QSR. There has been a very exciting response for these quick service food themes even in tier two and three cities. A multibagger appreciation is possible in some of the leading QSR companies.


Recommendation:

  • Burger King

  • Devyani

  • Westlife Development

  • Barbeque Nation & Dominos



Alternate Energy Theme

As indicated by PM Modi a couple of days back regarding the commitment of India for achieving zero carbon norms.  Although it will take another 50 years at least to achieve the zero carbon target.  However, it is very likely to achieve at least a 50% target in the next 15-20 years.  A shifting from fossil fuel to green energy has opened exciting scope for the companies coming out with green energy programme.  RIL with their recent announcement regarding moving towards a massive programme for solar and hydrogen energy is likely to see a phenomenon revenue growth by 2030.


Recommendation:

  • Reliance Industries



Monopolistic Theme

Recommendations:

  • IEX

  • CDSL

  • IRCTC

  • CAMS


Dot.com Theme

Recommendations:

  • INFO-EDGE SECURITIES


IT Theme

Recommendations:

  • TCS

  • INFY



Besides, since we have been undergoing a commodity super cycle, a decent appreciation is possible in select commodity companies like Tata Steel, Hindalco and JSW.


Wishing you Happy Diwali and a Prosperous New Year!



Rajendra Jhanwar

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