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Angel One Report
India’s ability to maintain inflation within manageable limits, supported by softening global commodity prices, is aiding sustained corporate profitability. The Nifty PE is currently trading at 20.8 times one-year forward earnings per share.
We maintain a positive outlook on sectors such as capital goods, construction, consumer durables, finance, FMCG, gas distribution, IT, pharma, plastics, power and refractories; all of which are positioned to benefit from India’s economic growth trajectory.
Near-term volatility stems from ongoing geopolitical tensions in the Middle East and Ukraine, crude oil prices, ongoing major state elections, and the evenly poised upcoming U.S. elections.
Here are the shagun ke shares recommeded by Angel One for Samvat 2081
NCC (Potential upside: 33%)
NCC Ltd. is one of the largest construction players in India and undertakes civil construction in transportation, water and irrigation, buildings, power, transmission and distribution. The company has ventured into railways and metals segments as well.
It also has exposure to the real estate development space and owns land bank in various cities in South India.
In Q1 FY25, revenue rose by 26.2% on a YoY basis to Rs 5,528 crores and net profit rose by 21.2% on a YoY basis to Rs 223 crores. Growth is supported by robust order book and superior execution of building division and electrical T&D business.
NCC is among the well-established players in the Indian construction sector. It has a well-diversified portfolio across sectors including buildings, roads, irrigation, and power. Government focus on infrastructure development and transportation is likely to support revenue.
Colgate-Palmolvie (Potential upside: 31%)
Colgate- Palmolive India Ltd. is India's leading provider of scientifically proven oral care products. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the 'Colgate' brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals.
In Q1 FY25, revenue increased by 13.1% on a YoY basis to Rs 1,497 crores and net profit rose 32.8% YoY to Rs 364 crores. Revenue growth is primarily led by double-digit growth in toothpaste and toothbrush segment.
Company is among the largest players in the consumer staples sector. It has a diversified product portfolio with strong branding and global presence. Furthermore, it is well-positioned to capitalize on rising awareness and spending in the oral care and personal care segment.
Cummins (Potential upside:32%)
Cummins India Ltd. is an Indian manufacturer of diesel and natural gas engines for power generation, industrial, and automotive markets. It operates in the engineering sector, specializing in engine manufacturing, power systems, and distribution services.
In Q1 FY25, revenue increased by 4.4% on a YoY basis to Rs 2,316 crores and net profit increased by 30.7% on a YoY basis to Rs 463 crores. The company has successfully maintained growth by rationalizing costs, enhancing its product mix, and leveraging the high demand for diesel gensets.
The company is among the leading manufacturers of diesel and natural gas engines in India. The rising importance of alternative fuels (natural gas) provides strong growth avenues. It is also likely to benefit from an increase in spending on infrastructure development.
Blue Star (Potential upside: 26%)
Blue Star Ltd. manufactures air purifiers, air coolers, water purifiers, cold storage and specialty products. The company offers turnkey solutions in mechanical, electrical, plumbing, and firefighting) projects.
It fulfills the cooling and refrigeration requirements of many corporate and commercial as well as residential customers.
In Q1 FY25, its revenue increased by 28.7% on a YoY basis to Rs 2,865 Crores and net profit increased by 103.6% on a YoY basis to Rs 169 Crores.
The growth is on the back of strong demand due to sparing temperature and harsh summer.
Blue Star is well-positioned to benefit from the ongoing growth in Indian air conditioning market. Its focus on cost control will likely increase its margin in coming years.
Company is also gaining market share by expanding distribution network and increased focus in tier two and three cities.
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