Friday, February 08, 2008

Best Stocks to Own in India forever!

Results not Guaranteed!
 
Commodities:

~ Reliance Industries (Perennially evergreen company)

~ Reliance Petroleum (Largest refinery with very high Nelson complexity index  that will lead to highest gross refining margins, GRMs)

~ Gujarat NRE Coke (integration from coking coal to coke)

~ Tata Steel (formerly Tisco; lowest cost producer of steel plus large value addition through Corus acquisition)

~ Hindalco (lowest cost producer of aluminium plus large value addition through Novelis Fusion Technology)

~ Sterlite Industries (commodity powerhouse at a time when globally commodities are in a super cycle)

~ Sesa Goa (largest reserves of iron ore in private sector)

I am including many stocks in this sector since global commodities will be on the upswing for the next 5 years.

Telecom

~ RCom (marketing aggressiveness plus financial engineering plus political acumen)

Auto

~ Tata Motors (from world's cheapest car to luxury Jaguar to SUV Landrover to trucks -- will be in global top five in 5 years)

Finance

~ ICICI Bank (proactive, aggressive fund raising and lending taking full advantage of slow decision making at PSU banks)

~ Reliance Capital (straddling all areas of non-banking financial services)

Infrastructure

~ L&T (another evergreen company -- value unlocking through listing of subsidiaries, very strong core business)

~ Patel Engineering (strong position in high margin high technology construction sector, real estate development)

Pharma

~ Glenmark (innovator, outlicensor of drugs in fast growing therapeutic areas like lifestyle diseases)

~ Cipla (innovator copier -- low cost supplier of essential medicines people can't do without)

Realty

~ DLF (proxy for the Indian real estate sector)

~ Unitech (number 2 and tries harder than number 1)

~ Sobha Developers (fully integrated real estate contractor who graduated to property developer status)

 

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