FUTURE LEADERS OF INDIAN STOCK MARKET ?

Niche plays are always catching attention of the investor fraternity and commanding premium over others in stock market in any country. Everybody is confident about Indian growth based on the hard working of middle class to attain better standard of living and their  changing style of spending. Similarly everybody in stock market is aware that today’s small caps and mid caps are tomorrow’s leaders, if it is backed by efficient promoters and scalable business models. Below I am presenting eight such stocks which are expected  to turn as future leaders in 5-10 year time frame .All these stocks are familiar to all of you and most of them are trading with sufficient volume and market capitalization. This is not a recommendation to BUY these stocks at current level , but keep this in mind and take the advantage of any market correction going forward to build a portfolio .Companies promoted only  by Indians promoters(or changing management in favor of Indians) are included in this list.

(1) ONMOBILE GLOBAL

Experienced management ,undisputed leadership position , aggressive expansion through organic and in organic route  in a sector with huge opportunity is inviting attention to this MVAS player.

CMP                                       –             Rs .368

P/E Based on FY 2010           -                    40 X

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(2)  TALWALKAR BETTER VALUE FITNESS

Increasing awareness of public about their  health , Good brand Name,Rapid expansion to tier II cities are positive for this company .

It was earlier recommended at Rs.162/-

CMP                       -      Rs 223/-

P/E Based on FY 2010           -            50 X

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(3) BIOCON

No need of explanation for one of the  India’s largest Bio-Pharma companies .Successful commercialization of its oral insulin program is expected to change its fortune which is now going through Phase III of clinical trials.

CMP         - Rs.445

P/E Based on FY 2010           -            35 X

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(4) KAVERI SEED COMPANY 

This integrated agri company is catching attention mainly due to the future potential of the industry in which it is operating , strong R & D , reputed brand name, aggressive expansion plans and health of its balance sheet.We have discussed about it many times here .For more details ,search the blog.

CMP   Rs.335

P/E Based on FY 2010           -    16 X      

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5) JUBILANT FOOD WORKS.

It was one of the most successful IPO in last FY .The only pure listed company from the food service industry is the darling of FII’s and other institutional investors mainly because of the vast opportunities available in a highly populated country like India , backed by experienced promoters . Company is aggressively expanding its operations to countries like Sri Lanka ,Bangladesh ..etc. It also trying to clinch similar business relations  with some other  big brands of the west as in the case of  DOMINO’s.

CMP   Rs 507/-

P/E Based on FY 2010           -            92 X

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6) CAIRN INDIA

India’s largest Non PSU oil producer is a hot subject among investors after the proposed takeover of  Vedanta  Group led by Anil Agarwal. The revival in world economies are expected to cause for a rise in oil prices and such an event will immensely benefit Cairn India.

CMP  Rs.335/-

P/E Based on FY 2010           -            60 X

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7) YES BANK

A steady performer led by an able banker. The low density of banks in India is offering lot of chances for expansion of branch network. This new generation technology driven  bank will be one of the big beneficiary

CMP  Rs 370/-

P/E Based on FY 2010           -            24 X

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8) FORTIS HEALTHCARE

Even if its previous attempt to become a global player by taking over Parkway Holdings  failed ,this health care provider is expected to grow exponentially under the leadership of young brothers in a sector with huge opportunity.

CMP     Rs 163/-

P/E Based on FY 2010           -            143 X--------------------------------------------------------------------------------------------------------

 Note :

If we follow the conventional methods of stock selection based on various valuation parameters ,none of the above may qualify for a BUY at present. But considering the opportunities available in these sectors where the mentioned  companies are operating and the ability of managements behind these companies may make wonders going forward . So keep an eye on these companies and try to catch them in any decent correction and keep for long term for wealth creation.