Top 5 Festive Picks - Religare

Religare has released a research report for the festival season with top 5 festive picks. The research firm has identified Amara Raja Batteries, Berger paints India, Ipca Laboratories, Orient Paper & Industries and Petronet LNG as the top 5 picks.

Amara Raja Batteries: Strong demand from automotive segment and substantial growth in replacement market augurs well for the company. The company has big expansion plans and looking to the strong demand we expect that the company will continue to show its strong financial performance in the near future.

Berger Paints India: To boost volumes and to garner a bigger share, Berger Paints plans to double its capacity over the next three years. The company is aggressively increasing its distribution network in South and West India to increase sales. Growing construction activities and industrial growth are the major drivers and we expect that any slowdown would not materially affect the company. The stock is currently trading at 26.6(x) of FY12 EPS of Rs 5.41 and any dip in prices can be used as an opportunity to enter the stock.

Ipca Laboratories: The company has strong domestic market presence as well as significant international presence and it is expanding its market by tie ups and by sourcing arrangements with multinational companies. Traction in the domestic formulation business and increased exports of active pharmaceutical ingredients (APIs) have led to an increase in revenues as well as enhancement of profit margins. The company is expected to maintain its current growth trajectory, given the many potential upside catalysts.

Orient Paper & Industries: OPIL is on expansion spree, entering the smaller semi-urban markets by spreading out its dealer network. Cement demand likely to grow with increased emphasis on infrastructure and rural development. In paper segment- the additional capacity of supply is set to exceed the demand. However, its electrical consumer durables should benefit from the signs of a continued pick-up in the residential sector.

Petronet LNG: Petronet LNG is turning into a marketer of natural gas from being just an importer and regassifier of liquefied natural gas (LNG). The company targets to double its liquefied natural gas (LNG) business in next five years by expanding existing infrastructure and adding new capacities. Its regassification charges are revised 5% up every year. So, with higher charges, increasing volumes and expansion plans, Petronet LNG is on the strong growth path.

Source : Equity Bulls

Keywords