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Below is the Views Coronavirus attack : Stocks to gain from India's falling imports By Mr. Santosh Meena, Senior Analyst, TradingBells
Electronic equipment, Organic Chemicals, Fertilizers and Plastics are top import areas from China that are going to get the benefit of fall in imports from China.
Dixon Technologies: CMP: 4636, 1Yr TGT: 5500
Dixon technologies are our top pick in the electronic equipment segment. "Make in India" theme is the key reason for the stellar performance of Dixon Technologies. Synergy with marquee names like Samsung and Xiaomi is also a key factor for the vertical growth of the company. The cost of production is increasing in China where companies are moving from China to India and Dixon technologies is a major beneficiary of this phenomenon and the company has a strong order book for FY20-21. Cut in corporate tax is also boosting the bottom-line of the company.
PI Industries: CMP : 1540 1 Yr TGT 1920
PI Industries is leading players in Agro Chemicals which is getting major benefits from falling imports from china of Fertilizer and Chemical products. PI Industries is ready for multi-year growth in the CSM segment because of its enhanced R&D, supply scarcity related issues in China. Recently, it has witnessed big product wins and a significant surge in the deal pipeline. The company is in the mode of capacity expansion as management sees decent growth opportunities in the future.
Supreme Industries: CMP : 1375 1Yr TGT : 1660.
Plastic products are the major beneficiaries of falling Crude oil prices and imports from China where Supreme industries are one of the leading players in the industry. Recently it has witnessed decent margin expansion amid slow down in volume where future growth outlook is bright as management expects volume to pick-up led by a revival in demand from packaging and plastic piping segment. Pipes and fittings are likely to witness strong demand from the government’s ‘Nal se Jal’ Scheme. The company witnessed strong demand from that scheme in Bihar and Uttar Pradesh.
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