Stock Recommendations For Your Portfolio

AXIS BANK | BSE CODE : 532215 | Volume : 66709 | CMP : Rs.1912 

The asset quality which has remained a cause of concerns for many banks is not the case with Axis Bank. The e management is of the belief that it should remain under control and despite having reasonable exposure to the infrastructure segment the bank has done well in keeping its stressed assets pool at 3.6 per cent. Going forward, as and when the investment cycle and money fl owes within the economy improve, the bank can see a reasonable amount of deftlation in its stressed assets pool. However, this is unlikely to be immediate and can take some time to pan out. The bank in our view can be a significant beneficiary of softening of bulk deposit rates, as bulk deposit forms 22 per cent of total domestic deposits and the bank is not averse to raising this proportion moderately if it is beneficial and warranted.

PIDILITE INDUSTRIES | BSE CODE: 500331 | VOLUME : 46000 | CMP : Rs.320

Pidilite Industries needs no introduction. As a leading adhesive & construction chemical manufacturer in India the company holds a near-monopolistic market share in the range of 50 per cent to 70 per cent across its key brands vis. Fevicol, M Seal and Dr Fixit. The financial performance of the company has been envious too. The company has delivered revenue and EPS growth of 17 per cent over the last three years despite challenging fundamentals for discretionary and construction spends. It is expected that going forward it is likely to sustain its growth rate especially given expectations of a macro improvement and a pick-up in industrial activity from the second half of the current fiscal. The encouraging factor is that with the margin improvement seen over FY14 driven by price increases and cost control along with initiatives taken to strengthen local management and marketing teams is going to be value accretive going forward