10 April 2009

Value stocks of '09

Value stocks of '09

Ashish Kapur, CEO, Invest Shoppe India Ltd

2009 is likely to be a year of consolidation. Things are likely to get worse before getting better. However, these pessimistic times do present an opportunity for long term, patient investors to invest and make extraordinary returns.

Since it is always difficult to time the markets and also because the current recession is a worldwide phenomenon, only genuine long-term investors having a holding period of at least three years should go ahead and start buying shares. Also, due to the volatile nature of the markets and the likely longevity of the present bear market, it will be beneficial to keep trading in your portfolio.

Use upsides to keep booking profits and panics to buy the same stocks again. Some of the stocks where we recommend investors to start accumulating from the present levels are listed below:

Noida Toll Bridge

The traffic on the flyway is expected to increase at a healthy rate, mainly due to the ongoing residential and commercial development in Noida and Greater Noida.

Land bank on the either sides of the bridge is an additional asset. The company expects further 40% growth in its average daily traffic over next two years due to Commonwealth games to be held in Delhi NCR in 2010.

State Bank of India

Investors looking for a large-cap stock which will add value to their portfolio can consider accumulating the State Bank of India stock in declines.

Beaten down valuations, strong financials in an extremely challenging macro environment, with sustainable growth in advances, make the bank stock attractive. Though the bank trades at a premium to all public sector banks, this appears justified given the size of its balance-sheet and the huge market share, despite which it has delivered better financial performance than its peers.

Market share for the bank has improved in recent quarters.


With its existing operations, ongoing expansion plans and high profitability, NTPC is favourably placed in the power generation space.

Further, the shortage in power supply, which is expected to remain in the medium to long term, will keep the capacity utilization of power plants at a high level.


The best known IT stock from India.

Well reputed as a quality solution provider, has very long established relationships with a number of leading banks and corporates in the US and other places, impeccable record of transparency and good corporate governance and strong balance sheet are some of the features why we feel Infosys is a must in every investor’s portfolio.

Larsen & Toubro

India’s infrastructure story is best captured by L&T.

Strong management, healthy order book position, diversification across product categories and geographies are some of the strong points of this bellwether engineering company.

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