Stocks That Caught Analysts’ Eye In 2017
These 5 stocks have become analysts’ favourite in a period of just one year.
As they say when it rains it pours.
At the start of 2017, shares of Graphite India Ltd., Future Lifestyle Fashion Ltd., Dilip Buildcon Ltd. and PNB Housing Finance Ltd. were some of the least recommended and tracked stocks among peers. Most of these companies had no more than two analysts recommending a ‘Buy’—Graphite India and Future Lifestyle Fashion had zero. Fast forward to 2018 and the number of analysts with a ‘Buy’ rating on these stocks has shot up.
So what’s caught analysts’ attention?
For Graphite India: Stock up +1,072 percent in 2017
China’s crackdown on polluting facilities and a move towards electric arc furnaces in steel plants has led to a sharp rise in graphite electrode demand. Graphite India alone accounts for 10 percent of the global capacity.
For Dilip Buildcon: Stock up +330 percent in 2017
An established player with a clean track record and timely completion of projects has made this engineering, procurement and construction company a favourite among investors.
The company’s policy of owning equipment gives aids margins.
A strong order book of Rs 14,204 crore as of the end of the second quarter, coupled with government’s focus on building infrastructure like the Bharatmala Project adds to the company’s prospects.
For Future Lifestyle: Stock up 176 percent in 2017
Growing demand in India’s branded clothing market
Rapid urbanisation and a young population augur well for the industry
Rising disposable income including rural areas.
Access to low cost internet also influences consumer buying patterns
Implementation of the Goods and Services Tax (GST) has also prompted a shift towards the organised sector.
For Edelweiss Financial Services: Stock up 183 percent in 2017
Well positioned with a diversified portfolio of financial services
Strong earnings growth from newer businesses
Acquisition of Religare’s retail broking business compliments existing business
For PNB Housing Finance: Stock up 58 percent in 2017
Robust order book growth of 58 percent compounded annual growth rate (CAGR) over FY12-17
Expansion in Tier 1 and 2 cities
Capturing market share and superior asset quality
SAIL has not been considered in this list, despite the number of buy calls going up sharply in the latter half of 2017, because sell calls still outnumber the buy rating.