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Unformatted text preview: er good inves tm ent opportunities .
Though the indus try c ontinues to s uffer from defic ient dem and and dec lining m argins ,
inves tors c an buy good s toc ks for the m edium to long term , partic ularly in the c ontext of the
bullis h trend in the m arket driven by expec tations on the politic al front. Whirlpool India
T arge t price : Rs 250
The s toc k is trading at a pric e-to-earnings ratio of 25. Cons idering the vas t potential of this
businesstoday.intoday.in/stor ypr int/201839 8/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today indus try in a m arket like India and the c om pany's leaders hip pos ition, the s toc k has the
potential to ris e to 250 in one year. At pres ent, it is trading around Rs 200.
T T K Pre stige
The s toc k, whic h has returned 1,600% in the las t s ix years , s till offers value to long-term
inves tors . The c om pany's top line is growing above 25% even in the c urrent s lowdown. Sale
of pres s ure c ookers has c ros s ed the five-m illion m ark while exports have c ros s ed one
m illion. Its induc tion c ook-tops are rec ording dec ent s ales . TTK Pres tige, with a phenom enal
58.4% return on c apital, c an ris e by 25% within a year. M ET ALS
"Stability in s teel pric es globally is a big pos itiv e for the s ec tor"
Lalit Thak k ar, M D, Ins titution, Angel Brok ing
Stoc ks of m etals & m ining c om panies fell s harply between January
and July this year as pric es and dem and fell and growth in c apital
expenditure s lowed. However, s inc e Augus t, they have ris en
s harply, led by im provem ent in s entim ent in developed c ountries ,
rupee fall and low valuations . In July-Septem ber 2013, m os t m etal c om panies reported
better-than-expec ted revenues . W e were es pec ially s urpris ed by s ales reported by s teel
m akers .
Rec ently, c om panies have s hrunk their expans ion plans . Nevertheles s , the global ec onom ic
s entim ent has im proved, as m anufac turing pic ks up. Stability in s teel pric es globally is a big
pos itive for the s ec tor. Although dom es tic dem and is weak, s om e c om panies , for ins tanc e
JSW Steel and Es s ar Steel, are inc reas ing exports to gain from the weak rupee.
However, after the rec ent ris e in s toc k pric es of m etal c om panies , we rec om m end inves tors
to buy s elec tively. businesstoday.intoday.in/stor ypr int/201839 9/18 1/2/14 M ar ket exper ts on what to expect fr om var ious sector s in 2014 : Business Today NM DC
The c om pany rec ently inc reas ed iron ore pric es after a s eries of c uts between Oc tober 2012
and July 2013. Strong balanc e s heet, dec ent s ales growth, low c apital expenditure and
dec ent dividend yield m ake us bullis h on the s toc k.
A c as h-ric h balanc e s heet and expec ted s harp growth in produc tion of z inc , lead and s ilver
m ake us pos itive on the s toc k. A s take s ale by the governm ent will be good for m inority
s hareholders . Low valuati...
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This document was uploaded on 02/06/2014.
- Spring '14