Our institutional team has announced their Dream Team of stocks to win. Their selection of stocks is presented in the Table below.
The key expectations from this government centre around capex and infrastructure-led recovery, fixing the struggling financial system and driving rural incomes.
Exports growth will be handled at individual corporate levels. I am not optimistic that we will get a comprehensive policy for driving exports industry-wise, like textile sector package, given Bangladesh exports more textiles than us. I hope they announce a strategic plan for the tourism sector, which can be a high employment generator at the bottom of the pyramid. I hope we see a follow through with simplification of laws especially taxes, and reduction of rates.
Based on the above assumptions, the eleven stocks I have selected in my portfolio are
Openers - L&T, SBI
Middle order - HDFC Bank, ITC, Reliance Industries, Siemens
Wicketkeeper – Gujarat Gas
Bowlers – KEC, Tech Mahindra, Capacite, SBI Life
I have chosen L&T, KEC and Capacite as infrastructure plays.
For playing the growth in the financial services sector, I have chosen SBI, SBI Life and HDFC Bank.
The consumption story will be played using ITC which is the least expensive of all FMCG stocks now.
Reliance Industries is uniquely placed because of its presence in petroleum refining to Jio and everything in between including retail. Tech Mahindra is a play on rupee depreciation and telecom sector expertise coupled with inexpensive valuations.
Gujarat Gas is expected to double its volumes over the next 4 years with strong financials and growth opportunities.
My dream team:
I have chosen my team and urge you to choose your dream team too. We’ll take stock after a year and check to what extent our dreams manage to team up with reality.
All the best!