You are on page 1of 22

7/15/13

Which Sensex stocks should you bet on? - The Economic Times on Mobile

15 Jul, 2213hrs IST

SENSEX

76.01

NIFTY

21.80

GOLD (MCX)

-220.00

20034.48

6030.80

26523.00

(RS/10G)

Sections Market Portfolio Search
You are here:Home » Markets » Stocks » Stocks in New s

Stocks in News

Which Sensex stocks should you bet on?
15 Jul, 2013, 1017 hrs IST, Sanket Dhanorkar & Narendra Nathan, ET Bureau

The 30 Sensex stocks are market movers and held most w idely. Their performance affects your portfolio w hether you invest in them directly, through mutual funds, or Ulips. Go through our ratings to find if you should buy, sell or hold.

The Indian stock market's benchmark index, the Sensex, has yielded only moderate returns over the oneyear, threeyear and five-year horizons. However, not all Sensex stocks have turned in a lacklustre performance over these periods. Defensive stocks in the consumer goods and pharma sectors have prospered. So, even in these times, when the index remains range-bound, there is a strong rationale for tracking individual stocks within the index. Given their large size, stability, high liquidity and institutional ownership, owning these stocks will lend greater resilience to your portfolio if the market enters a rough patch. As for the outlook for the Sensex over the next
sp.m.economictimes.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.cms# 1/22

7/15/13

Which Sensex stocks should you bet on? - The Economic Times on Mobile

one year, the US Fed's decision to taper quantitative easing (QE) from the end of this year has already led to an outflow from the emerging markets. If it proceeds on schedule, a market like India, with its high current account deficit (and high dependence on portfolio flows to fund the deficit) and a depreciating rupee, will definitely be affected. However, whether the Fed moves on tapering and the quantum of reduction will depend on the pace of economic recovery in the US.

On the domestic front, several state elections are scheduled this year, culminating in the May 2014 general election. In such a year, there is always the danger that reformist measures get relegated to the backburner and populist measures take precedence. Any step that burns a big hole in the fisc will affect market sentiments.

On the positive side, India's GDP growth appears to have bottomed out. The inflation scenario has turned more benign. Corporate earnings are expected to begin improving in a quarter or two. With the benchmark index trading below the long-term average, valuations definitely favour betting on equities. Among sectors, export-oriented ones like IT and pharma will benefit from the rupee's depreciation. However, both face trouble. The US government's visa rules are not encouraging for Indian IT. Pharma companies, especially those with large domestic businesses, will be affected by the government's drug price control initiatives. The FMCG companies' margins may come under pressure due to the higher cost of imported raw material. However, increased government spending, especially in rural areas, may boost demand for their goods.

sp.m.economictimes.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.cms#

2/22

cms# 3/22 . With this broad picture in mind. public-sector banks' delinquency pressures will continue.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. let us consider the prospects of individual stocks within the Sensex.economictimes. They will also have to withstand pressure from the finance minister to cut lending rates. sp. The infrastructure capital goods segment remains in the doldrums as investment activity has not revived.7/15/13 Which Sensex stocks should you bet on? .m.The Economic Times on Mobile With the economy still in the trough. The government's decision to raise the price of natural gas from 2013 is a positive for the oil and gas sector.

The periods of flat earnings growth and lack of other triggers are probably behind the firm. Analysts have already started upgrading their earnings estimates for financial year 2014-15 and the upgrades are in the range of 10-15%. The Indian rupee's depreciation and improving refining margins are going to be the other drivers of its earnings. Reliance Industries is going to be the biggest beneficiary of the recent natural gas price reform. Meanwhile.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.99 Dividend Yield: 1. it has witnessed volume growth.80 PE: 37.economictimes.68 PB: 1. its paper and hotel businesses are expected to show a turnaround after the current lows.01% Sensex Weight: 8. high earnings visibility and improving return ratios are likely to sustain high valuations. Its strong pricing power.The Economic Times on Mobile 1) ITC Recommendation: BUY CMP: Rs 349.59 Dividend Yield: 1. 3) HDFC sp. ITC's high pricing power allows it to pass on the cost of duty hikes to its customers. its improving profitability in the noncigarette businesses is driving earnings.97% Though there is a risk of timing (the new government after the general election may not allow it). 2) Reliance Industries Recommendation: BUY CMP: Rs 889.7/15/13 Which Sensex stocks should you bet on? . Despite a hike in excise duty on cigarettes.60 PE: 13.50% Sensex Weight: 16.81% While ITC'S cigarette division continues to clock healthy growth.m.25 PB: 11.cms# 4/22 .

Though spreads within the sector may get squeezed in the medium term due to the problems faced by the housing sector. HDFC is wellpositioned to defend its margins due to its wider reach and size. While the problem of crisis of leadership may have been solved.03% HDFC continues to be the undisputed leader among housing finance companies. 5) HDFC Bank Recommendation: HOLD sp.75 PE: 17.47% Sensex Weight: 8. Infosys has announced salary increments.economictimes.50% Sensex Weight: 7.12 Dividend Yield: 1.cms# 5/22 .85 PE: 19.m. profitability and derisking) is expected as the company strives to improve operational performance. Investors also need to consider the embedded value of its 23% stake in HDFC Bank.08 PB: 4. Despite its big size. A return to the company's earlier successful PSPD model (predictability.7/15/13 Which Sensex stocks should you bet on? . 4) Infosys Recommendation: HOLD CMP: Rs 2.24 Dividend Yield: 1. it will be some time before the management changes are reflected in better numbers.The Economic Times on Mobile Recommendation: HOLD CMP: Rs 849. To improve employee morale. HDFC's asset base is expected to grow by more than 20% in the coming years as well. and high asset quality. sustainable revenue and net profit growth. sustainability.802. N R Narayana Murthy has displayed typical zeal in setting the house in order. there is not much upside in the medium term in this counter as its valuation is high.01% After his sensational return to the company he cofounded.83 PB: 4. However.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. The other factors that attract long-term investors to this counter include its operational excellence demonstrated over several decades.

economictimes. high CASA and high return ratios. a strong player like L&T has also taken a beating.40 PE: 24. despite the fact that the bank remains the best in class in terms of core parameters like earnings growth.The Economic Times on Mobile CMP: Rs 694. Since the stock is going ex-bonus on 13 July. perhaps because of its high valuation and the prolonged economic slowdown.10 PE: 18. 7) ICICI Bank Recommendation: BUY CMP: Rs 1.71 PB: 2. However. Many infrastructure players face a cash crunch.79% Sensex Weight: 6. Lower commodity prices will also help L&T improve its margins.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.m.061.43% While it is reasonable for the market to punish weak counters from the infra sector. high NIM.cms# 6/22 .95 PE: 12. which leaves little room for an upside. analysts are of the view that most of the positives are already factored into the stock's price.86% Sensex Weight: 5.7/15/13 Which Sensex stocks should you bet on? .53 Dividend Yield: 0. This. its stock price has been languishing in 2013. The company is expected to remain stable at current levels and generate positive returns for investors once the revival in capex takes place.76 sp.65 PB: 4.72 Dividend Yield: 1. Yet. This is likely to help strong players like L&T expand at the cost of weaker competitors. 6) Larsen & Toubro Recommendation: BUY CMP: Rs 994.09% The March quarter marked the 54th consecutive quarter of over 30% year-on-year growth in net profit for HDFC Bank. use the price fall triggered by this event to buy it. asset quality.

It has shown improvement in operating performance and a pick-up in retail business growth.cms# 7/22 .economictimes.7/15/13 Which Sensex stocks should you bet on? .The Economic Times on Mobile PB: 1. In the future.29% For the past few quarters.88% Sensex Weight: 5. net interest margin is expected to improve as the bank deploys excess liquidity more aggressively.m.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.78 Dividend Yield: 1. ICICI Bank has been churning out decent numbers despite a slowdown in the economy. The company's RoE has improved by almost 300 bps over financial years 2011-13 and is expected to expand due to healthy performance by subsidiaries. The stock appears attractively priced at current levels and should give a reasonable upside. sp. mainly general insurance.

37% Sensex Weight: 4. and doubling of natural gas price from April 2014 are good for the oil & gas sector. 9) ONGC Recommendation: HOLD CMP: Rs 296.59 PB: 8. With TCS being the market's darling.11 PB: 1.cms# 8/22 . sp.10 PE: 22.76% The recent reforms like reduction in under-recoveries due to regular increases in diesel price. so existing investors should hold on to it. the Indian IT's strongest player is expected to continue to do well in the future as well. TCS is expected to benefit from the ongoing US economic revival. Though.m. TCS has already started concentrating on newer opportunities (under-penetrated geographies and new technologies).30 PE: 12.The Economic Times on Mobile 8) TCS Recommendation: HOLD CMP: Rs 1. ONGC is a very good investment for the long term. However. In fact.economictimes. It is also expected to benefit in a big way from the rupee's depreciation. the positive impact of this development may offset the impact of this year's wage hikes. there are reports that ONGC may be asked to bear the same subsidy burden during the April-June period as well.21% Sensex Weight: 4.99% Despite the likely impact of the anticipated US Immigration Bill. its valuation is a little stretched at current levels.7/15/13 Which Sensex stocks should you bet on? .com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.16 Dividend Yield: 1. ONGC will benefit from the gas price hike. Being the biggest Indian IT player. theoretically. Barring government interference. the government may take it back in the form of higher oil subsidy share to bring down the its fiscal deficit.606.68 Dividend Yield: 3. Since the bill will have a significant impact if passed in the current form.

Besides.m.23 PB: 1.04 Dividend Yield: 2. and some banks have yielded. a good monsoon would boost consumption in rural areas.25 PB: 45.08% Sensex Weight: 3. Moreover. These problems may continue for a few more quarters till the economy recovers. sp.42 Dividend Yield: 3.cms# 9/22 . However.7/15/13 Which Sensex stocks should you bet on? .40 PE: 7.79% The SBI is already going through a tough period of margin compression and asset quality concerns. raising its stake in the Indian unit by almost 15%. 11) State Bank of India Recommendation: HOLD CMP: Rs 1.40 PE: 34.economictimes. Given the sharp rally. which will put pressure on margins. A weakening rupee also makes imported raw materials costlier.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.77% HUL's shares surged to a record high recently after the company's UK parent completed an open offer.893.The Economic Times on Mobile 10) Hindustan Unilever Recommendation: SELL CMP: Rs 601.19% Sensex Weight: 2. most analysts fear a decline in its share price in the near future. weak consumer sentiment is likely to keep a lid on volume growth. the finance minister is now putting pressure on PSU banks to reduce lending rates. which would improve volumes.

54% Sun Pharma has grown by leaps and bounds from its humble beginning in 1983. the SBI's immediate outlook is weak. margin pressure is going to increase. Due to these factors. the recent rupee depreciation will help Sun Pharma. expected in 2014. 13) Sun Pharmaceuticals Recommendation: HOLD CMP: Rs 1.cms# 10/22 . Therefore.108. it is expected to grow by around 20% in the next two years (financial years 2013-15).69% Sensex Weight: 2. Even so.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.11 Dividend Yield: 0.95 PE: 9.45 Dividend Yield: 0.m. sp. the earnings growth will take centrestage in this counter. However. in the medium term. Tata Motors' passenger vehicle segment is also under pressure. Since most of these negatives are already in the price.50 PB: 2.economictimes.45% Sensex Weight: 2. To make its earnings stream more predictable. With the litigation out of the way.25 PE: 38. the company's consolidated numbers may remain weak for a few more quarters despite Jaguar and Land Rover's ( JLR) good performance. the stock doesn't hold much potential for upside gains from its current levels. the commercial vehicles segment is the worst affected. JLR has a strong pipeline of products for the next two to three years. the launch of a smaller Jaguar. Since most of its earnings are in dollars. In addition to the continued traction of the new Range Rover. Hence.69% In the auto sector. Sun Pharma recently settled its ongoing litigation with Wyeth and Atland Pharma by making a lump-sum payment of $550 million. 12) Tata Motors Recommendation: HOLD CMP: Rs 291. The aggressive recovery tactics adopted in recent times by India's largest bank may also become difficult to pursue as the general election approaches. Among them.15 PB: 8.7/15/13 Which Sensex stocks should you bet on? . is going to be the most significant because it will open up an entirely new segment for the company.The Economic Times on Mobile Since the competition won't allow banks to reduce their deposit rates simultaneously. long-term investors may hold on to the stock. its valuation has skyrocketed in the recent past.

44% Sensex Weight: 2. M&M could compensate for it with improved tractor sales. M&M's tractor sales in the same month increased by 23%.79 Dividend Yield: 1.60 PE: 16.The Economic Times on Mobile 14) Mahindra & Mahindra Recommendation: BUY CMP: Rs 905. It is planning to launch a new version of XUV 500 with lower ground clearance.000 lower. M&M is changing its vehicles' specifications to circumvent the additional tax imposed on SUVs. Against a 13% fall in the passenger vehicle segment in June on a year-on-year basis. sp.cms# 11/22 .58 PB: 2.m.economictimes. and it will be priced Rs 30. Increased rural income due to election-related spending and a good monsoon should help increase the demand for tractors.35% Though the passenger vehicle segment is going through a difficult phase.7/15/13 Which Sensex stocks should you bet on? .com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.

However. regulatory issues pose a threat. The prospect of more surcharges and fines from the government. The recent allocation of four more captive coal mines with an aggregate reserve of 2 billion tonne will provide fuel security. The company is also maintaining its pace of capacity addition: it commissioned around 4.economictimes.33% Sensex Weight: 2.55 PB: 1.000 MW in 2012-13.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.48 Dividend Yield: 3.94% Sensex Weight: 1.34% The telecom company's African operations continue to be a major drag on performance. CCEA's new coal price mechanism will help it import coal to mitigate the shortfall from Coal India supplies. the company's operations have begun to stabilise. 16) NTPC Recommendation: BUY CMP: Rs 146. it is the sector's safest bet. make the stock's prospects uncertain.cms# 12/22 . a penalty of Rs 650 crore was slapped on the company for violating the country's roaming norms.84% NTPC's problems may be ending. The country's largest power producer will benefit from the ongoing sector reforms.27 Dividend Yield: 0. along with the upcoming licence renewals. At current valuations.95 PE: 53.m.The Economic Times on Mobile 15) Bharti Airtel Recommendation: Sell CMP: Rs 304. sp. In the domestic market. Last month.7/15/13 Which Sensex stocks should you bet on? . with both voice and data traffic growing at a decent pace.59 PB: 2.10 PE: 9. revenue growth and margins remain weak. Two years since it acquired the African business.

A weak rupee also provides a fillip to its dollar revenues.cms# 13/22 . most analysts are positive about it.65 PE: 17. A string of new product approvals from the USFDA have led to significant product launches that are expected to boost earnings this fiscal year.47 Dividend Yield: 0. Given the high earnings visibility.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. sp.90 PE: 23.7/15/13 Which Sensex stocks should you bet on? .70 Dividend Yield: 2.The Economic Times on Mobile 17) Bajaj Auto Recommendation: HOLD CMP: Rs 1.40% The pharma major's US operations are showing an improved traction.349.64% Sensex Weight: 1. leading to a rally in stock price over the past few months. The workers are demanding a wage hike and 500 company shares at Rs 1 per share. The chief problem is muted demand for two-wheelers. 18) Dr Reddy's Lab Recommendation: BUY CMP: Rs 2.economictimes. In the fourth quarter of last fiscal year.65% Bajaj Auto reported its lowest domestic monthly sales in June since December 2009. Better export realisation is the only positive. Dr Reddy's launched 18 new generic products and filed 14 new product registrations.81 PB: 5. The ongoing strike at its Chakan plant caused production losses.867.m. Tough competition in the twowheeler segment is expected to keep margins low.76 PB: 6.41% Sensex Weight: 1.

The Economic Times on Mobile 19) Cipla Recommendation: HOLD CMP: Rs 405. usher in more transparency in pricing.87 Dividend Yield: 4. the stock may remain range-bound in the near term due to its ongoing investment phase. its outlook remains positive due to the expected ramp-up in key markets and ongoing expansion plans.67% Sensex Weight: 1.49% Sensex Weight: 1. Attractive valuation.cms# 14/22 . Cipla is expected to complete its $488 million takeover of South African Medpro this month. However.m. Growth has been a concern given the delays in environmental and production approvals for mining projects. However.00 PE: 21. citing rebuilding of product pipeline in the US.24% The company has given a lower guidance for revenue and margins over the next two years. However.economictimes. Its expansion in emerging markets and increased spending on research and development to build product pipeline provide comfort over the medium to long term.7/15/13 Which Sensex stocks should you bet on? . and improve supply. sp.16% The world's largest coal producer has underperformed the Sensex this year due to its inability to ramp up its production and due to weak coal prices. sentiment is slowly turning positive for the stock due to the recent government approval to set up an independent coal regulator.61 Dividend Yield: 0.58 PB: 3.00 PE: 10.92 PB: 3.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. 20) Coal India Recommendation: HOLD CMP: Rs 300. improving pricing power and receding policy risks may keep the stock buoyant. This is expected to speed up clearances.

However.70 PE: 17. The jump in costs of imported inputs due to the rupee's depreciation is expected to create pressure on margins within the sector.94 PB: 3. Wipro's expected recovery may get delayed from 2013-14 to 2014-15.cms# 15/22 . sp. it will benefit from its higher depreciation. 22) Maruti Suzuki Recommendation: HOLD CMP: Rs 1. Since most of Maruti's imports are denominated in Japanese yen. this is reasonable because of its lower growth rate and weaker margins.26 Dividend Yield: 1. While Wipro is taking a number of correct steps like revamping sales team to increase the number of deals won and moderating attrition by increasing employee satisfaction.86% Sensex Weight: 1.50 PE: 13.12% The entire auto sector is facing headwinds due to the increase in petrol and diesel prices. the counter is quoting at low levels. the impact of these measures is not yet visible either in revenue or net profit growth.economictimes.13% Though Wipro's valuation is currently cheap compared with that of its peers. The guidance given by Wipro's management for the April-June quarter is also weak. Existing investors may hold on to the stock.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.55% Sensex Weight: 1.54 PB: 2.452. This means there is no immediate trigger for the counter.m.The Economic Times on Mobile 21) Wipro Recommendation: HOLD CMP: Rs 375.31 Dividend Yield: 0.7/15/13 Which Sensex stocks should you bet on? .

Maruti should also be able to capitalise once the expected economic recovery occurs.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. therefore. However.cms# 16/22 . sp.7/15/13 Which Sensex stocks should you bet on? .economictimes. the market price is already discounting these positive factors and. it will be able to report decent earnings growth in 2013-14 despite the weak topline growth.m. a significant upside seems limited from current levels in the medium term. unlike other players. Since it is one of the strongest players in the market.The Economic Times on Mobile Hence.

Tata Steel continues to be the strongest domestic player in metals with access to key raw materials. There are also reports that the company is planning to sell its stake in other group companies to reduce debt and fund its expansion plans. Gail.75 Dividend Yield: 3. The ongoing restructuring in its overseas operations has also started yielding fruit. This. However.03% After the recent gas price hike. but it will not be able to pass this on to customers as the pricing of both LPG and petrochem is based on import parity. will dent profitability.economictimes. the drastic fall in the stock's price (more than 40% since the beginning of 2013) is much more than warranted.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. It expects a hit of $218 million annually on pre-tax profits on account of higher costs.80 PE: NA PB: 0. Existing investors may continue to hold on to the stock. is trying to free itself from the subsidy burden by changing focus from transportation of gas to trading.cms# 17/22 . 24) Tata Steel Recommendation: HOLD CMP: Rs 262.15 PB: 1. Its gas cost will increase substantially. thereby reducing its dependence on the regulated business. in addition to its subsidy burden.7/15/13 Which Sensex stocks should you bet on? .04% Sensex Weight: 1.42 Dividend Yield: 2.03% In addition to the fall in steel prices triggered by global commodity woes.The Economic Times on Mobile 23) Gail Recommendation: HOLD CMP: Rs 321. on its part. sp.m. Tata Steel also has to manage its high debt.80 PE: 10.98% Sensex Weight: 1. gas transmission company Gail could be adversely affected in the near term.

However. the stock may continue to be an underperformer. clocking a decline in volume in the past few months.95 PB: 1. Despite its attractive valuation. sp.7/15/13 Which Sensex stocks should you bet on? . it has recently started operations in Africa and Latin America. As the demand environment remains sluggish. The prolonged slowdown and poor investment climate are reflected in a falling order book and slackening pace of order execution. Given these issues.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. Besides.88% Sensex Weight: 0.51 Dividend Yield: 2. fiscal year 2014 is expected to be tough for the company.11 PB: 6.The Economic Times on Mobile 25) Hero Motocorp Recommendation: HOLD CMP: Rs 1. In the domestic market. displaying strong intent to gain a firm foothold in other emerging markets.51% Sensex Weight: 0.m.708.economictimes.82 Dividend Yield: 3.85 PE: 6. Its revenue and profit margin are expected to decline.91% Earnings visibility remains a big concern for this capital goods manufacturer. 26) BHEL Recommendation: SELL CMP: Rs 187. the company has planned a capex of Rs 25 billion over the next two years. stiff competition and continued weak demand in the domestic market is likely to keep the margins under pressure.99% Hero Motocorp has been affected by the slowdown in two-wheeler demand. It lost some market share in the motorcycle segment to its erstwhile partner Honda.cms# 18/22 . there appears to be little scope for a rerating in the near term.50 PE: 16.

98 Dividend Yield: 1.57 Dividend Yield: 1.83% Tata Power continues to suffer due to issues like losses at Mundra UMPP and lower profitability at the Indonesian coal mines due to weak coal prices. Hindalco's US-based subsidiary. The Maharashtra Electricity Regulatory Commission (MERC) has approved a 25% tariff increase for residential consumers from 1 July. Tata Power. sp. the stock may oscillate till there is more clarity about the compensatory tariff. lends comfort with good earnings. analysts are of the opinion that the negatives are already priced in. However. Novelis. 28) Hindalco Recommendation: HOLD CMP: Rs 101.38% Sensex Weight: 0. is expected to reap good dividends. Given the stock's low valuation.7/15/13 Which Sensex stocks should you bet on? .economictimes. with the government bringing in more reforms in the power sector.cms# 19/22 . investors should hold on to it for the medium term.29% Sensex Weight: 0.The Economic Times on Mobile 27) Tata Power Recommendation: HOLD CMP: Rs 89. the country's most efficient power producer.com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. electricity tariffs have started going up.65 PE: 11. Besides. A global slowdown in demand for commodities has taken its toll on the sector. These conditions are likely to persist for a while.45 PE: NA PB: 1.m.71% The stock has corrected sharply this year in line with the downturn in the metals sector. With Tata Power planning to increase its capacity at Mundra UMPP to 5. For Hindalco.600 MW.45 PB: 0. Though delayed. lack of approvals for captive coal mines for its greenfield smelters and weak aluminium prices remain a concern. While near-term positive triggers are not visible.

and so on. long-term investors may continue to hold the stock till clarity emerges on a few of these issues. all these negatives have already been factored into the price. which is a time-taking process. JSP's power division also faces sector-specific problems on the ground.52% Commodity players across the globe are going through tough times.20 PE: 7. issues regarding coal quality.30 PE: 4.60% Sensex Weight: 0. Other concerns pertain to the merger between Sterlite and Sesa Goa. Sterlite's power division also faces problems like transmission bottlenecks.m.90 PB: 0. JSP has also not incurred material capital expenditure on these coal blocks or associated projects. India's largest copper smelter. investors had better avoid this counter for now. 30) Jindal Steel & Power Recommendation: SELL CMP: Rs 222. Since the shrillness of charges may increase closer to the elections.7/15/13 Which Sensex stocks should you bet on? .com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. especially because of the uncertainty created by the US Fed's proposed reduction in quantitative easing.98 Dividend Yield: 0.cms# 20/22 . is currently facing multiple problems. though there won't be any immediate impact on earnings because of this.60% Besides weak global commodity prices. However. It also has to live with the overhang from the coalgate allegations.55 Dividend Yield: 2. Though the Supreme Court has temporarily allowed Sterlite Industries to operate its smelter.The Economic Times on Mobile 29) Sterlite Industries Recommendation: HOLD CMP: Rs 88. Hence. its fight with the Tamil Nadu Pollution Control Board on this issue continues.economictimes.14 PB: 0. Sterlite Industries. sp. None of the affected blocks are operational or are expected to become operational in the next twothree years.72% Sensex Weight: 0.

.98%) Vol: 1030285 shares shares traded traded Share Via : Facebook Email Twitter View full site version Read more on » TCS | Sensex stocks | RIL | ONGC || ITC | Infosys Related News Higher risk of rate hike on July 30: Experts Gold's gyrations deter investors even at 3-year lows After Infy.7/15/13 Which Sensex stocks should you bet on? .cms# 21/22 .com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697.m. Tata Consultancy Services Ltd. will other IT biggies too surprise mkt? BofA-ML's positives that may boost Indian markets Sensex breaches 20K | Top 5 stocks for week PREVIOUS NEXT Mid-cap stocks may be a good long-term bet Infosys shares down 2.30(2.economictimes.75 31.1% on profit-taking Back | Home Sections Market Portfolio Search SENSEX 76.00 20034. Figures for buy.80 GOLD (MCX) -220.80 26523. PB: Price to book value ratio.20%) Vol: 134371 1641.01 NIFTY 21.The Economic Times on Mobile The overall recommendation is by ET Wealth. Stocks Text Size : 6030.40 35. PE: Price to earnings ratio. BSE NSE 1641..48 Search.00 (RS/10G) GO Articles Other Mobile Sites: TOI Mobile | Indiatim es | Job Search | Property Search | Post Print Ad | follo | GreetZap | Alive sp.90(1. sell and hold are number of analysts holding these views.

com/markets/stocks/stocks/in/news/Which-Sensex-stocks-should-you-bet-on/articleshow/21053697. Term s of Use and Grievance Redressal Policy | Privacy Policy | Feedback sp.7/15/13 ET Apps Which Sensex stocks should you bet on? .cms# 22/22 .economictimes. All rights reserved. Pow ered by Indiatimes.The Economic Times on Mobile Copyright © 2013 Bennett Coleman & Co.m.