SID Ki SIP: In a special edition of Sid Ki SIP with Zee Business Managing Editor Anil Singhvi, stock market analyst Siddharth Sedani, who is Head – Senior VP – Equity Support & Product Sales at Anand Rathi, has come up with a new them ‘Global Giants’, wherein he suggests four stocks with 25 per cent upside.
In Global Giants, the analyst highlights stocks from the multinational companies category – these companies have strong corporate governance, believes in robust transparency, and accountability with good cash flow and low debt as well as splendid operating margins, return ratio.
Below are the four MNC stocks suggested with investment rationale:
1. United Spirits Limited – Target: Rs 962; Upside: 25% in a year; Allocation: 30%
United Spirits is a leading alcohol beverages company of whose 70 per cent of revenue comes from the premium category. The company’s premium category revenue may grow by double-digit, similarly, in return ratios, RoE also comes in double-digit. A debt-free multinational company has a good realization likely, present in 180 countries.
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देखिए SID की SIP – Siddharth Investment Portfolio@AnilSinghvi_ @s_sedani05 #StockMarket pic.twitter.com/3wBF1CbQXp
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2. Siemens – Target: Rs 2752; Upside: 12%; Allocation: 30%
The German-based company has 3 lakh employees worldwide and has a nearly Rs 1720 crore order book. It is the number one company in automation, and technology solutions and has received the Pune metro project. Around 23 per cent growth in profitability is likely as well margins may expand in 2 years. It also has a strong electrification and order book.
3 KSB Limited – Target: Rs 1603; Upside: 18%; Allocation: 20%
Another German-based company in the pump and valves business has a market share of 7.5 per cent with an order book of Rs 900 crore. The company’s order book may grow up to Rs 2500 crore in FY24. It has a robust PAT (Profit After Tax) and a strong growth trajectory.
4 Cummins India – Target: Rs 1183; Upside: 17%; Allocation: 20%
The US-based company has a presence in 190 countries and is in the business of making engines. The company has a huge demand for engines in segments like Railways, Defence, and Marine. It took a good price hike in the March quarter and EBITDA margins expansion likely.