Market experts on what to expect from various sectors in 2014 _ Business Today

The pac e of m arket s hare gain will ac c elerate as

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Unformatted text preview: profitability. The pac e of m arket s hare gain will ac c elerate as it grows m uc h fas ter than the s ys tem . The m edium -term m argin outlook is enc ouraging. Sus tained effic ienc y gains and c ontinuanc e of benign c redit c os ts will enable the bank to m aintain high return on as s ets . If m ac roec onom ic c onditions deteriorate, the bank's valuation prem ium will expand further. FM CG & CONSUM ER DISCRET IONARY "W e retain our 's ell' s tanc e on m os t fas t m ov ing c ons um er goods firm s " Rak s hit Ranjan, Senior Analy s t, Ins t Equities , Am bit Capital Stoc ks of m os t c ons um er s taples c om panies have fallen 10-15% over the pas t three m onths . W e expec t the trend to c ontinue as earnings growth s lows due to (a) ris e in c om petition and weak ec onom ic environm ent; (b) unlikely m argin expans ion from the c urrent high bas e and; (c ) high advertis ing and prom otion s pends to fight c om petition am id lim ited s c ope for inc reas ing pric es . Given the expens ive valuations (average 29.7 tim es 2014-15 earnings ), we retain our 's ell' s tanc e on m os t fas t m oving c ons um er goods firm s , with Hindus tan Unilever being our top 's ell'. However, we prefer c om panies in entry-level dis c retionary c ons um er s egm ents s uc h as footwear, kitc henware and paints that have s us tainable c om petitive advantages . This is due to the following c harac teris tic s of thes e s egm ents : a) low penetration levels ; b) c ons is tenc y of dem and; and c ) relatively les s intens e c om petition with three-four large players c ontrolling 70-80% m arket in their res pec tive s egm ents . ypr int/201839 5/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today Bata T arge t price : Rs 1,083 Bata's bigges t s trength is its em ployee inc entive s truc ture that c reates an entrepreneurial c ulture. It has widened its produc t bas e and is now foc us s ing on im proving brand c om m unic ation and inventory m anagem ent, bes ides introduc ing new retail form ats , in 2014 and 2015. W e expec t 17% and 20% a year growth in revenue and earnings per s hare, res pec tively, between 2012 and 2015. T T K Pre stige T arge t price : Rs 3,799 Near-term headwinds s pec ific to Tam il Nadu and Andhra Prades h and a high bas e effec t due to s tellar s ales of induc tion c ook tops in the third quarter of 2012-13 are likely to ens ure s lower growth during the third quarter of 2013-14. However, the c ons equent fall in the s toc k pric e will offer inves tors an attrac tive entry point. The c om pany is on a high growth trajec tory with s us tainable advantages over c om petition in innovation, dis tribution and brand rec all. W e expec t earnings growth m om entum to revive from January-June 2014 onwards . OIL & GAS "Crude oil pric es are ex pec ted to hov er between $95 and $112 in 2014" Sudip Bandy opadhy ay , Pres ident, Des tim oney Sec urities The year 2014 is expec ted to be a landm ark f...
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This document was uploaded on 02/06/2014.

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