This week, market has been in a range of 200 points. But one sector which performed very well this week is Logistic stocks. Gati in a single week gave more than 30 percent return after the good news for the sector. As per reports, Logistic companies would now been given infrastructure status. After which they can use Long-term loan benefits given to Infrastructure sector.
Although, it has been my suggestion to keep at least one logistic stock in your portfolio for long-term. The future of logistic companies is great and the present valuations at which they are available are very reasonable.
However, today’s post in on the topic of largecap stocks having potential to double or triple your money in next 2-3 years.
Aditya Birla Capital
My first pick is AB Capital. Aditya Birla Capital is a recent listing in our markets. AB capital comprises all the financial services provided by AB Group. With a strong presence across the asset management, private equity, corporate lending, structured finance, wealth management, housing finance, pension fund management and insurance businesses, it would not be wrong to say that AB Capital is a complete package of all the financial services.
In last 2 years, we have seen a continuous strong buying in most of the financial services providers. Therefore, i don’t think that there is any possibility of having a great downside in stock in near term. At present levels, i think stock is fairly valued in market. However, growth opportunities for AB Capital is at very good level. Going forward, i believe AB Capital would deliver a great growth in its financials in long-term. Therefore, i think AB capital could be a good option for investors to hold it for next 2-3 years.
Mahindra & Mahindra
Mahindra & Mahindra or M&M is an Indian multinational car manufacturer. In Electric Vehicle segment, company is focusing on expanding its presence through launch of recent new modals of electric rickshaws. Tactor manufacturing has also been a great and profitable segment for company as shown in the past few quarters. Car and Truck segment are also doing well for the company.
In future, there are some possibility that M&M may get valuable orders in defence sector. In long-term also, I think M&M would continue the leadership in Tractor business and focus on Electric vehicle will definitely help company to expand their portfolio. Overall, at present levels, M&M really looks a very attractive buy for next 3-5 years.
Tata Steel is one of the top steel producing companies in the world. Company which was earlier called TISCO has maintain its operations since its starting around 1900. After 2015, anti dumping duty which was placed on steel imports had resulted in a great improvement in most of the Metal Companies.
As of now, tata steel is producing almost 3 MT saleable steel in a quarter. In July-September quarter, company had reported a great growth in its sales number to Rs 32k crore but the profit for the same quartet came at Rs 990 crore. Combining all the things and comparing it with others, i think Tata steel is available at a very good price. Going forward, the improvement in profit margin would definitely help stock to cross levels of Rs 1000. Therefore, even at present levels, tata steel is a good buy for investors to hold it for next 1-2 years.
Muthoot Finance is one of the largest gold financing company in the world. Beside this, company also offers foreign exchange services, money transfers, wealth management services, travel services, and also sells gold coins. As of now, Muthoot finance has a market capital which lies in midcap range. But Muthoot finance has most of the features of largecap stocks.
In last few quarters, company has delivered a good rate of growth. During July-September quarter, company posted a great Rs 450 crore profit against revenue of Rs 1,665 crore. At present levels, i believe stock has potential upside of Rs 200 in short-term. However, in long-term, stock has potential to triple your investment in next 2-3 years.
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