BUDGET 2020 STOCK PICKS
Union Budget 2020 is
likely to present by Finance Minister Nirmala Sitharaman on 1 February in
Parliament. 
I am providing here some best value Pick for Budget-2020 as well as for New year-2020
this stock might be give you 15-25% return during year 2020.
AXIS BANK
Axis Bank is India’s third-largest
private sector bank in terms of Bank Market Share. This bank offers the entire
Range of financial services to customer like large and mid-sized corporate,
MSMEs, and agriculture and retail customers .
Axis Banks absolute NPAs have been
reducing on QoQ basis since the last five quarters its good sign for Bank as
well as investors.
Bank Facing Many problems during
last 2 year but now Worst being behind (in terms of asset quality) and
strategic growth plans from new management gives assurance about Axis Bank’s
future.
SBI LIFE INSURANCE
SBI Life India’s second-largest
private sector life insurance company in term of Market share and has a 6.3%
market share in the industry across the country. It has a varied product mix
across individual and group insurance products along with a multi-channel
distribution network comprising bank assurance, individual agents, insurance
brokers, direct sales, etc.
ULTRATECH CEMENT
India is the world’s second-biggest
cement market. With holding 24 percent market share in India,
Ultratech Cement is the largest manufacturer of cement, Ready Mix Concrete
(RMC) and white cement in the country with the strong parentage Aditya Birla
Group.
The costs stabilize and the pricing
power will come back. I expect 13% revenue, ~19% EBITDA and ~31% EPS CAGR led
by its cost leadership, pricing, improving efficiency and strong volumes over
FY19-22E.
The stock trades at ~12.4x FY22E
EV/EBITDA and ~USD 169 EV/MT. Ultratech, with a pan-India presence and strong
sustainable financials, will continue to trade at a premium over mid-sized
cement companies segment.
GUJARAT GAS
Gujarat Gas Lid is India’s largest
city gas distribution company, having presence across 23 regions in the
Gujarat, Union Territory of Dadra and Nagar Haveli and Thane Geographical Area.
The company has a 23,200-km pipeline
network. It distributes around 9-9.5 million metric standard cubic meters of
gas in a day to about 13,50,000 households, approx 2 lakh CNG vehicles (serving
in single day) and to more than 3,500 industrial customers.
IFB INDUSTRIES
IFB Industries is Goa Based Company
engaged in manufacturing a varied product portfolio with a strong brand
presence of front load washing machines, top-load washing machines, dryers,
ACs, microwave ovens, dishwashers, modular kitchen, and chimneys (totaling more
than 80% of FY19 sales).
A substantial improvement in product
variation leading to improved revenue generation and localization plans for
input resources, favorable product mix, and Efficient operating expenditure are
likely to result in margins expansion. Expansion in EPS and valuation re-rating
could lead to improved stock price performance.
SUDARSHAN CHEMICAL
Sudarshan Chemical (SCL) is World’s
fourth largest pigment manufacturer and the Biggest in India, and now aiming to
become the third largest company over the next three years. Sudarshan Chemical
(SCL) has constantly gaining market share over the past few years.
The company’s low-cost manufacturing
advantage, technical capabilities, wide product portfolio and environmental
compliance are another key positives for the company.
TRENT LTD
Trent is a Tata group company since
1998. Trent’s in business of retail stores like Westside, Zudio, Star and
Landmark.
Opening New Store in the Westside
format, rightsizing of Star Bazaar stores along with consistent growth in Zara
are further expected to accelerate Trent’s financial performance.
Companies steady SSSG (Same Stores
Sales Growth) in Westside to continue even though increase in number of store
expansion. Given strong store economics, scalability and execution, Broker
House has a positive view on the stock.
*Investment are subject to Market risk
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