Value-Stock-Plus

Informed Investing!

Investing is most intelligent when it is most businesslike - Benjamin Graham (1894-1976)

____________________________________________________________________

Value-Stock-Plus stands at No. 50 in the list of Top 100 Finance Blogs  by ValueWiki

Recognised by The Economic Times as one of the most popular financial blog

Updated! Compilation on Warren Buffett, Rakesh Jhunjhunwala & Charlie Munger
____________________________________________________________________

« Home | Stockmarkets: The 'outsourcing' theme... » | Tata Steel: Best is likely behind us by Merill Lynch » | Pharmaceuticals: Robust Outlook for Q4FY06 by Meri... » | Short Selling & Keynes 'Figure' Theory » | Indian market expensive, be stock specific now: Mo... » | The World in 2050 by PriceWaterhouseCoopers » | Foreign Hand Series: 'We are in a bear market rally' » | Markets: What next? » | Infosys turns Rs 10,500 to Rs 2 cr! » | The Joel Greenblatt Way : Grow Rich "Not Trying Ve... »

India Strategy Report by Motilal Oswal

Strong underlying growth and a series of earnings upgrades has resulted in a 74% return in the BSE Sensex during FY06. As the Indian stock markets have continued their upward march, delivering 20% return during 4QFY06 and 74% return during FY06, the Sensex is already at the top end of our revised 12-month target range of 9,600-11,800. We believe that at current levels, the markets are fairly valued and recommend buying stocks that offer secular growth at reasonable premium.
While the long-term India story remains intact…
The longer-term India story remains intact. The economy is expected to enter the fourth consecutive year of 7-8% GDP growth, which is unprecedented. Strong balance sheets of Indian companies, rapid scale-up to global size through organic and inorganic initiatives, visibility of earnings CAGR of 15% over next few years, and high standards of transparency and corporate governance will ensure increased allocation to Indian equities. We expect investors to make healthy returns, provided the investment horizon is longterm. … the Indian stock markets are now fairly valued
While the long-term India story continues to be positive, we would like to underscore that the markets are now trading at the higher end of our target Sensex band. On several parameters, market valuations are now above historical averages and leave little margin of safety in the event of any disappointment in corporate profit growth. However, valuations are still well below the levels witnessed at the height of the previous bull runs.
While the markets appear fairly valued, they are still far from the bubble valuations witnessed during the previous bull runs. The current momentum of strong inflows from both domestic and foreign investors will be the most important determinant of the near term market performance.
Buy secular growth at reasonable premium
We note that the valuation premiums of some secular growth sectors have contracted and there is an opportunity to buy growth at relatively lower premium. We would classify large cap IT, wireless, private-sector banks, and two-wheelers in this category. We believe that such sectors/stocks offer a better risk-reward trade-off and the current market expectations on these companies are in sync with their past financial performance.
Our preferred bets are Bharti, Infosys, SBI, HDFC Bank, Hero Honda and Maruti.
Click here to download the report. (pdf file - 1.7mb)
  • Additional India Strategy Reports click here

Posted by toughiee on Wednesday, April 19, 2006 at 5:38 PM | Permalink

Post a Comment

Search


Compilations

  • Warren Buffett
  • Charlie Munger
  • Rakesh Jhunjhunwala

Previous posts

  • Stockmarkets: The 'outsourcing' theme...
  • Tata Steel: Best is likely behind us by Merill Lynch
  • Pharmaceuticals: Robust Outlook for Q4FY06 by Meri...
  • Short Selling & Keynes 'Figure' Theory
  • Indian market expensive, be stock specific now: Mo...
  • The World in 2050 by PriceWaterhouseCoopers
  • Foreign Hand Series: 'We are in a bear market rally'
  • Markets: What next?
  • Infosys turns Rs 10,500 to Rs 2 cr!
  • The Joel Greenblatt Way : Grow Rich "Not Trying Ve...

Archives

  • November 2005
  • December 2005
  • January 2006
  • February 2006
  • March 2006
  • April 2006
  • May 2006
  • June 2006
  • July 2006
  • August 2006
  • September 2006
  • October 2006
  • November 2006
  • December 2006
  • January 2007
  • February 2007
  • March 2007
  • April 2007
  • May 2007
  • June 2007
  • July 2007
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • March 2008
  • April 2008
  • May 2008
  • June 2008

About This Blog

  • Get on Mobile
  • Atom Feeds
  • Disclaimer
  • Email to Owner

Blog Directories

  • Stockblogs

Related Blogs

  • DeepWealth
  • Dardashti
  • Ridgewood Group
  • Trading Day by Day

Business Papers

  • Economic Times
  • Business Standard
  • Business Line
  • Financial Express
  • DNA Money

Business News

  • Capital Market
  • Equitymaster
  • India Infoline
  • Moneycontrol.com
  • Yahoo! India Finance
  • ICICIdirect

Results

  • India Earnings

Quotes & Stats

  • Asian Indices
  • All Indian Quotes
  • Indian ADRs
  • Indian GDRs
  • Arbitrage
  • Sector Classification
  • FII Trends
  • MF Trends
  • NSE Heat Map
  • Insider Trading
  • BC/RD
  • BM (Company)
  • BM (Date)
  • BSE Bulk Deals
  • NSE Bulk Deals
  • NSE Block Deals
  • US Indices
  • US Pre-Market
  • US After Hours
  • CBOE VIX
  • European Indices
  • Commodity/Currency
  • Nymex Light Crude Oil
  • Nymex Natural Gas
  • Nymex Gold
  • Nymex Silver
  • Nymex Copper
  • All In One

Equity Analysis

  • Kotak Street
  • Moneypore
  • Geojit
  • IDBI
  • Naviamarkets
  • ET Big Bucks
  • BS Smart Investor
  • FE Investor
  • BL Investment World

Screeners

  • Equitymaster
  • ICICIdirect

Research Reports

  • Moneycontrol

Technical Analysis

  • ICICIdirect
  • Yahoo! Finance

E-Books

  • Value Investing
  • Trading & Technicals
  • Gann
  • Elliott Wave
  • Risk Management
  • Derivatives

Misc. Links

  • BSE
  • NSE
  • SEBI
  • SEBI Edifar
  • Corp. Filings
  • WatchOutInvestors

Global Research

  • Morgan Stanley GEF
  • Hussman Funds

Interactive

  • Online Chat
Subscribe to this blog's feed
[What is this?]
Powered by Blogger