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The Art of Demonetisation & the recoiled spring by Green Capital – Stock
Picks 2017 – 9th
November 2016 – 9th
February 201...
Overweight Rating:
Mid cap: Sector: Microfinance
Top pick: Equitas
Rating: Buy
CMP - 150: 9th
Nov, 2016
CMP - 186: 9th
Feb...
Mid Cap: Auto Oil/chemicals
Top Pick: Castrol
Rating: Buy
CMP - 385: 9th
Nov, 2016
CMP - 418: 9th
Feb, 2017
3 months retur...
Midcap: low/mid Housing Finance
Top pick: Dhfl
Rating: Buy
CMP - 220: 9th
Nov, 2016
CMP - 303: 9th
Feb, 2017
3 months retu...
Large Cap: Paints
Top Pick: Asian paints
Rating: Buy
CMP - 900: 9th
Nov, 2016
CMP - 1002: 9th
Feb, 2017
3 months return: 1...
Disclaimer: Equity investments are subject to market risks. Please consult a financial
advisor before making any equity in...
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Green capital: India stock picks 2017

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The Art of Demonetisation & the recoiled spring by Green Capital – Stock Picks 2017 – 9th November 2016 – 9th February 2017
3 months performance update:
Portfolio picks & Investment thesis: short term pain - long term gain

Published in: Economy & Finance
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Green capital: India stock picks 2017

  1. 1. The Art of Demonetisation & the recoiled spring by Green Capital – Stock Picks 2017 – 9th November 2016 – 9th February 2017 3 months performance update: Portfolio picks & Investment thesis: short term pain - long term gain A brief summary study on the sectoral impact on the indian economy and the case for increased exposure to domestic equity. Broad Investment thesis: 1: The valuations earlier of the Index were expensive at current 24.5 pe, now we are at a more fair value at current 20/21 pe current. 2: Specific sectors and stocks the correction has been in 20-30 percentile areas: a case for value buying on long term asset allocators. 3: With the cash liquidity flowing back into the banks, the interest rates will be cut, and inflation will tend to be in control and bonds will provide a lesser yield, equity investments become more attractive. 4: Certain sectors like consumption, real estate, gold, rural finance, auto, nbfc might report weak results in q3 and q4 for factoring in the knee jerk reduction in demand and cash liquidity. 5: This creates a perfect platform for the all liquidity to be introduced back into the central bank and government starts increasing investments in low income housing, rural finance, consumption, infrastructure, defense, education, healthcare. 6: This further creates and provides impetus to the indian economy and the sectors that benefit include agri, low income housing, infrastructure, rural consumption, micro finance, building/construction, cements, paints. 7: As interest rates go down, lending/borrowing, consumption and investments increase, providing an impetus to equity investing. 8: Investors are advised to accumulate on market dips, prepare a buy and hold strategy, follow staggered purchases on market corrections over the next 2 months: Base case Nifty 7900-8000. Duration: 1 year
  2. 2. Overweight Rating: Mid cap: Sector: Microfinance Top pick: Equitas Rating: Buy CMP - 150: 9th Nov, 2016 CMP - 186: 9th Feb, 2017 3 months return: 24% Mid cap: Sector Building/Construction Top Pick: Nbcc Rating: Buy CMP - 210: 9th Nov, 2016 CMP - 280: 9th Feb, 2017 3 months return: 33% Mid Cap: Agri Chemicals Top Pick: Rallis Rating: Buy CMP - 183: 9th Nov, 2016 CMP - 241: 9th Feb, 2017 3 months return: 32%
  3. 3. Mid Cap: Auto Oil/chemicals Top Pick: Castrol Rating: Buy CMP - 385: 9th Nov, 2016 CMP - 418: 9th Feb, 2017 3 months return: 8.5% Midcap: HCV Auto Top Pick: Ashok Leyland Rating: Buy CMP - 75: 9th Nov, 2016 CMP - 95: 9th Feb, 2017 3 months return: 27% Midcap: LCV/hcv auto finance Top pick: Shriram Transport Finance Rating: Buy CMP - 828: 9th Nov, 2016 CMP - 952: 9th Feb, 2017 3 months return: 15%
  4. 4. Midcap: low/mid Housing Finance Top pick: Dhfl Rating: Buy CMP - 220: 9th Nov, 2016 CMP - 303: 9th Feb, 2017 3 months return: 38% Large Cap: hcv/lcv/motorcycles auto Top Pick: Eicher Motors Rating: Buy CMP - 20350: 9th Nov, 2016 CMP - 23900: 9th Feb, 2017 3 months return: 17.5% Large Cap: Cements Top Pick: Ambuja Cements Rating: Buy CMP - 193: 9th Nov, 2016 CMP - 238: 9th Feb, 2017 3 months return: 23%
  5. 5. Large Cap: Paints Top Pick: Asian paints Rating: Buy CMP - 900: 9th Nov, 2016 CMP - 1002: 9th Feb, 2017 3 months return: 11.5% Total Portfolio Average 3 months Absolute Return: 23% Total Portfolio Average 12 months Annualized Return: 92% footnote: Nitin Shakdher is a professional long-term value investor as the Founder & CEO at Green Capital with the core focus on equity research, asset management advice, knowledge investing, capital markets and venture funding. The Green Capital group is an exclusive multi-family office investments firm that manages wealth, preserves capital, creates portfolio strategies and provides asset management advice. For more information: Nitin Shakdher Founder & CEO Green Capital www.thegreencapital.net nitin@thegreencapital.net +91 9810666400
  6. 6. Disclaimer: Equity investments are subject to market risks. Please consult a financial advisor before making any equity investments. Investors should not solely rely on the information contained in this Report and must mak e investment decisions based on their own investment objectives, judgment, risk profile a nd financial position. The recipients of this Report may take professional advice before act ing on this information.

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