The Equity Market is the Only Market with Ocean of Opportunities. However, this is a Game for Smart or rather Extremely Smart Investors to make Big Money. In order to educate Investors with the Zeal and Caliber to spot the next Multibagger, we’d like to enlighten about certain Sunrise Sectors which throw this opportunity without mentioning any stock and we’ll leave to the readers to spot the stock and write as comment.
One of the Most prominent sector to spot multi-baggers is Specialised infrastructure and related services – In the last bull run we saw the rise (and fall) of infrastructure companies involved in more plain-vanilla businesses like road building and real estate. In the coming decade more specialised infrastructure companies and allied services involved in areas such as metro rail, gas distribution, city transport and logistics could see some winners. The challenge is to find companies that have niche technology and a capital light balance sheet.
Leisure & Entertainment Companies that are able to grab the first mover advantage and scale up will be the winners. A wide array of products and services will compete for the customer’s wallet share ranging from travel and tourism, quick service restaurants, specialized education, multiplexes and medical diagnostics.
From Chaos to organized Sector – The shift towards the organised sector is being witnessed in areas such as cable television, inter-city bus connectivity, city radio taxis, small-ticket size lending and low cost housing.
Brand Power Look at the Consumer Durables & Fast Moving Consumer Goods Space where there are Big Brands. For a range of products like hair oil, fabric wash, tea, milk and ready-to-eat snacks, the Indian consumer is now making a shift from unbranded to branded.
Lastly, E-Commerce boom is known to everyone of you. The real revolution may already have begun in the e-commerce space. Given the congestion issues in our cities and towns, India may well skip widespread adoption of large format retailing. Adoption of e-commerce will significantly alter the operating cost structures of companies and open up new distribution channels. With multiple players, including multinationals in this space, one may want to wait and watch to see who the real winners will be.
In each of these sectors, Investors should focus on companies that adopt an expansion strategy that does not lose sight of profitability and cash flows. Apart from the above-mentioned factors, we identify multi-baggers based on Quantitative Methods as well. For the list of stocks identified by means of Quantitative Algorithm, do write to us feedback at DalalStreet.Biz