SEBI Registered Investment Advisory
Salient features of May 2018 WealthBuilder Recommendation
1. The company has been consistently growing from several decades. Management has good experience in the sector in which it operates.
2. The company is very comfortable in terms of financial health with manageable long term debt and current assets which are higher than the current liabilities. They are trying to re-invest as much as possible from the internal accruals.
3. Their return on equity is respectable and it is highly possible that this is going to accelerate going forward.
4. The operating profit margins are consistent and over the past few years has been going up which indicates that the company is leveraging the economy of scale.
6. The valuations at which the company is trading provides good comfort. The stock is very reasonably valued and seems to be safe bet for someone who want to invest for long term.
7. The company operates in a sector which is poised to grow continuously for several years. The recent structural changes like GST and demonetization will lead to higher share of organized sector. The company is in a sweet spot to capture this growth.
May 2018 Recommendation: Proxy Play to the Indian GDP Growth & beneficiary of recent policy changes like GST
Our May 2018 stock recommendation is a direct beneficiary of higher GDP growth. As the Indian economy is expected to gain traction due to higher consumer spending, it augurs well for the company. The company actually benefits from multiple structural changes like GST, move from unorganized to organized sector, spending by government on infrastructure. All these changes can catapult this company into big league.