Stock Recommendations For Your Portfolio

TECH MAHINDRA | BSE CODE: 532755 | VOLUME: 116000 |CMP:Rs 1398.00

The relation between a depreciating currency and the performance of IT stocks is known to all. But the skill is to know which stock to bank upon. Tech Mahindra is one company from the IT pack that is poised for better performance in the near term and is likely to outperform its peers. The acquisitions made by the company are likely to reap benefits from now on. There are also chances that the management may use its treasury shares for more acquisitions, which will be EPS accretive going forward. Also, the demand for the stock is on a rise due to a rumour in the markets that the dividend policy may change and can rise to the standard of other IT companies. Also, the level of dependence on its largest client has declined considerably, which too is a good sign for the company. One can look at the scrip from a medium-term perspective.

PIDILITE INDUSTRIES | BSE CODE: 500331 | VOLUME: 20000 | CMP: Rs 223 .00

The makers of Fevicol, Pidilite Industries is a dominant player in India’s growing adhesive and industrial chemicals market. With a market share of around 70 per cent in its leading brand categories in the organised segment, the company is well placed to reap benefits going for- ward. Its two segments, viz. Consumer & Bazaar (C&B) and Speciality Industrial Chemicals have witnessed a CAGR of 18 per cent and 12 per cent respectively between FY07 and FY13. This growth was largely driven by Pidilite’s deep penetration into the domestic market and regular product innovations to leverage its flag-ship brand ‘Fevicol’ for launching new products. The company’s wide penetration in rural India with a strong brand image provides Pidilite an edge over its competitors (mostly unorganised). A strong brand and sizeable advertisement expenses have created an entry hurdle for other players as well as other cheap imported products. One can look at investing in this stock from a medium-term perspective.