10 stocks that never let equity investors down

Calendar year 2017 has been a great one for equity investors with the benchmark Sensex and Nifty giving 28% returns. Though the overall returns may not be that great in year 2018, investors would keep getting individual stock opportunities that could yield much higher returns.

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Below are 10 stocks that won’t let you down:

Dabur India

Nearly 50% of Dabur’s domestic sales come from rural India, the highest proportion among FMGC companies, making it an ideal play on rural revival. Worries on wholesale channel due to GST and rural sales are receding faster than expected. 

Nilkamal

Nilkamal is a market leader with 32% share in the molded furniture segment. The FY12-17 has seen a consistent growth of plastics division at 8.3% CAGR. The company has free cash flows with very low leverage and debt to equity ratio of 0.14 in FY 2017.

Bank of Baroda

Given the management’s focus on cleaning up the balance sheet and laying the foundation for sustainable growth, the gradual improvement in asset quality will lead to better profitability. 

CanFin Homes

The slowdown in real estate activity has affected the growth of most housing finance companies. However, this did not impact companies like CanFin Homes, which concentrate on mid- and small-sized housing loans. Given the strong traction in loan book expansion and sustained healthy asset quality, we project Can Fin Homes to deliver 2% plus ROA over FY 2017-19.

Birla Corp

Post installation of 12MW WHRS at Satna, power cost will dip by 4% of total P&F cost. We estimate revenue to post 19% CAGR over FY17-19 estimated primarily led by higher volume and marginal growth in realization. We have forecast 42%, 55% and 50% EBITDA, EBIT and PAT growth respectively over FY 2017-19

Mahindra Holidays

There is a gradual increase in resort revenue and this shift enables it to sustain the revenue momentum in case of a drop-in membership growth rate,” says an Axis Capital report. With more than 80% of Mahindra's customers now making online booking, its digital push is also starting to pay off, helping rein in employee costs. 

Godrej Agrovet

Godrej Agrovet has strong financials with 40% PAT CAGR over past 7 years with minimal working capital requirement. We expect 20% PAT CAGR over FY 2017-21.

Apollo Tyres

We expect the company’s market share in radial tyre segment to improve on the back of capacity expansion to meet the rising demand. Further, ATL is expected to benefit immensely with the recent imposition of Anti Dumping Duty in Chinese TBR. 

South Indian Bank

The bank has adopted a strategy to increase exposure in retail & SME - high yield segments. At current market price, stock is trading at an attractive valuation of 1 times P/ABV of FY20.

Ajanta Pharma

Ajanta Pharma has given double-digit returns to investors on a year-on-year basis since 2018. It has reported 41.60 percent bottom line growth on an annual basis. 

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