Betting on MCX, IndusInd in long-term
Betting on MCX, IndusInd in long-term: Milan Sharma, Rivergate Capital:-
What is your first rcommendation?
MCX. It is one of the leading players in commodities trading market. We saw majority of the shares with the company and I think this is one company which should do well in times to come based on couple of reasons.
One is that with recent demonetisation, we will see a lot of unorganised trade from the commodity market shifting to the organised trade and that will benefit MCX. And two, MCX is one company which has been recently granted by the options trading for the commodity market which is a huge area.
In India, we never had options in the commodities.. But I think with the approval in place, in times to come, we will have option in the commodity market and that will be a game changer for this company. So tomorrow options come on, the gold contracts as well as other commodity contracts are going to get huge fillip in volumes of the exchange. The third aspect is the agri side of it. MCX is focussing now more on the agri options and if agri options will come in place, then again that is a huge area.
Going forward in times to come, maybe in two to three years’ time, this can be a multibagger kind of story.
My second is a buy call on IndusInd BankBSE -1.05 %, a new generation private sector bank with almost 30% quarter-on-quarter growth. We have been seeing this bank from the last almost 16 quarters of consistent growth in the bank. The best part about this bank is that though it is a largecap bank, where all the other banks are suffering from the NPA problem, this is a bank which clearly stands out with gross and net NPA both less than 1%.
If you look in terms of the CASA deposits of the bank, a very healthy growth with 37% growth in the CASA ratio for this bank and NIM of around 4%. On all the parameters, if I compare this bank with another bank I think it stands out clearly and the way they have tried to build their bank in the retail side and that will also give benefits in the times to come.
Now talking on the corporate side they are best suited because they are trying to build their corporate banking book now in the times when the economy is almost on turnaround and they did not venture into corporate banking side aggressively as aggressive as ICICI BankBSE -0.39 % and other banks like Axis BankBSE -1.31 % who did and that is the reason why they settled with NPA of around 6-7% kind of things on their books.
This is one more advantage IndusIndBSE -1.05 % Bank -- great value unlocking in times to come when the corporate banking book builds up and that too on a cleaner note. So overall, this is the bank if one patiently holds for two to three years time. I think it can easily double to-- two to three times returns from these levels.
If you want to more information regarding the Stock cash tips, Stock tips, Nifty tips, Commodity tips, equity tips call @8109999233 or fill form http://equityresearchlab.com/Freetrial.php please drop your number for profit calls...?
No comments:
Post a Comment