It seems Indiainfoline has come out with its Top Diwali Dhamaka picks:- Looking at these stocks we don't any of these are going to do Dhamaka in your portfolio, all are sleepy stocks, bulky and has already give return. I don't understand why these guys didn't reco these stocks 5 years back when they were at their 1/10 or 1/20 of current value. Inspite of market crash, these stocks are not worth invetsing, they are large cap, yes they will bounce back 1st when market will recover but they will bounce back and stay there.
No doubt some of these stocks like Bharti, BHEL, RIL are strong company but strong & popular company hardly create wealth. If anyone want to just earn money from stock market then this portfolio is good but non of these are reco by HBJ Capital in the portfolio of wealth creating stocks.
Smart Investors better keep off from these stocks and go for 10in3 or stocks from Mid-Cap Mela only which are reco by HBJ Capital after extensive research.
Model Portfolio (Let me tell you, a model portfolio should contain at most 4-5 stocks not 15 as suggested by Infoline of India)
1. Axis bank 9% - Just like yet another bank, what is diff between Axis or ICICI/HDFC etc
2. Bharti Airtel 10% - India with 33Cr mobile user, look for Mobile VAS providers.
3. BHEL 5% - Do you really need to bet on govt run enterprises, decision making takes years to get implemented.
4. CESC 6% - Promoters are not shareholder friendly.
5. Cipla 4% - I don't understand medicine business, all medicines looks a like.
6. Gail 5% - Oh, great business, monopoly but govt has spoiled it.
7. Hero Honda 5% - Shall we go for Nano? All the glory days are gone Hero.
8. ITC 6% - Demerge it, it will do better, just like HLL, ITC is a sleepy & dull company.
9. Jindal Saw 5% - Commodity, will China again push the demand, GOD only knows?
10. M&M 5% - If they have not created wealth in last bull run do you expect them now?
11. Marico 5% - Good business & promoters but more like role model company then wealth creator. Ask them to come out of hair, there are lots of parts in body need your care:-)
12. RIL 17% - Reliance was a king will remain as king but an old king. Do you believe in old is gold then go for it, I don't believe.
13. Sun pharma 4% - Sun or Cipla, Ranbaxy or Dr. Reddy; these pharm didn't participate in last bull run hence they are falling less, don't get mislead by less fall in share prices.
14 Tech Mahindra 7% - Remove BT from Tech M, they are left as an empty box.
15. Union Bank 7% - These guys spend more money in advertising then paying their own employees:-)
The investment horizon is 3 years and the basis of selection is:
1. Companies that are adequately funded with low financial leverage,therefore unaffected by adverse turn in credit cycle
2. Business with reasonable earnings visibility in this uncertain environment.
3. Value buys less prone to damage due to volatility
4. Growth stories with an element of 'inelasticity in demand'.
-JK, Equity Research Analyst.
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