Amid the ongoing uncertainty in the domestic equity market, the benchmark equity indices stood almost flat with negative bias in the ongoing calendar year to date. While the BSE Sensex inched lower by 168 points to nearly 60,673 on February 21, 2023 from around 60,841 on December 30, 22, the NSE Nifty index also declined 279 points during the same period. If you want to tide over the ongoing market volatility on Dalal Street, systematic investment (SIP) in stocks can help you to accumulate wealth in the long run.
In general, a stock SIP can help investors to accumulate quality stocks by adopting a disciplined investment strategy. Of late, HDFC Securities recently suggested over 15 stocks for long-term SIP. Have a look:
Bharti Airtel: Bharti Airtel is an integrated telecom company, that has a presence in India, Africa, the Middle East and Bangladesh, offering mobile, broadband, fixed-line telephone, DTH (direct-to-home) and enterprise services. Bharti has a healthy subscriber base and revenue market share with a pan-India network. The mobile segment contributed 72 per cent of revenue and 28 per cent came from non-mobile business in FY22.
Cipla: Cipla is a global leading pharmaceutical company and the third largest company in India with a 4.8 per cent market share in IPM. The company mainly focuses on respiratory, anti-retroviral, urology, cardiac, anti-infective, gastro-intestinal and CNS. Cipla is the second-largest inhaler-selling company globally. It derives a majority of its revenue from India, North America and South Africa markets. Cipla leads in respiratory therapy with a market share of around 22 per cent in India. Six of Cipla’s brands are featured in the top 10 respiratory brands by value in India (as per IQVIA March 2022).
Coal India: Coal India is the single largest coal producer in the world and functions through its eight subsidiaries in 84 mining areas spread over eight states of India. Coal India has 318 working mines (as on July 1, 2022) of which 141 are underground, 158 open cast and 19 mixed mines. CIL reported the best-ever production figure of 622.63 MT in FY22 registering a growth of 4.4 per cent, the highest-ever offtake was at 661.9 MT.
Godrej Properties: The management reiterated its FY23 project delivery guidance of 10msf and expects it to be skewed largely in 4Q. Godrej Properties aims to close FY23 with project additions of Rs 15,000 crore (v/s Rs 9000 crore in FY22), of which Rs 6000 crore have been signed-in FY23 till Q2. The company has recently launched 4 projects across 3 cities with an estimated booking value of Rs 4,450 crore.
Grasim Industries: Flagship company of Aditya Birla Group, Grasim is a leading global player in VSF and a leading player in chemicals (Chlor-Alkalis). It is the holding company of the largest cement player – Ultratech and diversified financial services (NBFC, Asset Management and Life Insurance) business in India.
ICICI Bank: HDFC Securities prefers ICICI Bank because of its strong balance sheet with a granular, sticky liability base, lower stress levels, industry-best PCR (Provision Coverage Ratio) and adequate CAR (Capital Adequacy Ratio). Its subsidiaries which are leaders in their respective fields add strong value to the overall valuation.
Infosys: Infosys has a strong financial profile, driven by its healthy annual cash-generating ability and debt-free balance sheet for over a decade. The IT major is also expected to invest in niche acquisitions to strengthen its domain expertise in the medium term. These will be largely funded by its cash surplus and healthy accrual.
ITC: The company’s ability to leverage internal synergies across its diverse businesses lends it a unique type of competitive advantage.
Larsen & Toubro: L&T is India’s premier engineering giant with decades of experience in the engineering & construction sector. It is well poised to be the key beneficiary of capex upcycle driven by investments in both public and private sectors.
Mahindra & Mahindra: M&M is the leader in the tractor industry and the largest beneficiary of a positive rural outlook with more than 60 per cent of revenues contributed from rural markets. It is likely to gain market share gains in the tractor segment (FY22 it stood at 40 per cent against 38.2 per cent in FY21) which will be led by new launches. It has the most comprehensive tractor portfolios in the industry right from 20HP to over 60HP (more in 51-50HP followed by 31-40HP).
NTPC: HDFC Securities believes NTPC is amongst the safest bets in the power sector given its dominant position in the generation, adequate fuel supply arrangements and regulated business model.
Reliance Industries: Reliance forayed into the new energy business in FY22 to focus on renewable and clean energy. The company has invested in various energy businesses like batteries, solar cells and panels manufacturing, clean mobility solutions, energy storage, turnkey solutions in the clean energy value chain, solar wafers, and hydrogen electrolysers through its subsidiary Reliance New Energy in FY22. Besides, Oil & gas business will benefit from the start-up of the MJ field which has the potential to further lift production by close to 60 per cent at 29mmscmd for FY24. In addition to this, the successful launch of 5G services are some of the positive drivers for the company.
SBI Life Insurance: SBI Life is well poised for growth with a wide array of product offerings and an expanding distribution base with an emphasis on improving the productivity of the banca channel.
State Bank of India: The subsidiaries are performing exceptionally well and adding substantial value to the bank’s valuation. This will also help SBI hedge against downturns in specific segments and access multiple growth avenues.
Tata Steel: Tata Steel is one of the leading global steel companies with a consolidated steelmaking capacity of around 34 million tonnes (MT) out of which around 20 MT is in India. China reopening its economy would aid a pick-up in economic activity thereby aiding a revival of global steel demand.
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