INSUBCONTINENT EXCLUSIVE:
Football requires a team of players, and so does investing, which requires a portfolio of stocks to make outstanding returns
Football and investing, in that sense, are very similar.
A football team is composed of 11 players; attackers or commonly known as forwards,
midfielders, defenders and a goalkeeper who work in sync to score goals and defend the territory.
In the same way, an investor’s portfolio
should be made up of high-risk, high-return stocks – the forwards in the football terminology, growth stocks – the midfielders, stocks
performing in line with the markets - the defenders, and high dividend yield stocks who perform in good or bad times by giving out dividends
– the goalkeeper.
When the above combination of stocks is made, then the portfolio can provide protection against loss and at the same
time deliver big gains.
The portfolio that we have constructed ideally represents the football game
Hold these stocks till next FIFA to make above-average returns
The cumulative portfolio returns in four years would enable you to attend the next FIFA live at Qatar with your family.
Here is how you will
achieve this.
Forwards :- High-beta stocks which are most prone to market risks but can score maximum gains when all mathematics go
right.Zydus Cadila (10% weight)With 84 new products launched, the company performed much better than other peers and is expected to do
better going ahead.
RBL (10% weight)This is the fastest growing private sector bank
Over FY17-18, the company posted a 38 per cent growth in revenue, 42 per cent growth in profit while net interest income grew 45 per
cent.
READ MORE: Here’s your World Cup team for D-Street with Modi as coachMidfielders: - These are stocks with dual quality of cutting
down market volatility and clocking gains to help your portfolio get into a winning position.Info Edge (9% weight)From a loss of Rs 426.9
million in FY17 to a net profit of Rs 5,009.49 million in FY18, the company staged a turnaround in FY18
Info edge operates in the niche segment of offering Internet-based recruitment services which have rapidly picked up pace.
AB Capital (10%
weight)In Q4FY18, PAT grew 90 per cent
The company is a financial conglomerate firing all cylinders to capture a dominant position in India’s fast growing consumer finance
space.
Eicher Motors (9% weight)Profits in last three years have grown at 13.55 per cent with strong RoCE of 49.85 per cent
With strong sales growth and capacity addition, Eicher Motors is expected for a good ride ahead.
Godrej Consumer (8%
weight)Net profit for
Company has reported 3-year CAGR of 25.48 per cent due to higher sales in India and Africa
RoE is at 27.08 per cent with a PE of 53.71
The company is fast growing into many vertical for high sustainable growth in the future.
Defenders: - When the market is turbulent these
stocks will defend the portfolio from adverse movements while helping you make gains.Bajaj Auto (10% of the weight)Revenue growth was in
double digits first time since FY12 on the back of 46 per cent YoY growth in domestic three-wheeler sales and a turnaround in exports
It is expected to sustain with more export and domestic demand.
HDFC Bank (9% of the weight)The stock is a consistent 20 per cent profit
It is the most valuable lender, with a proven track record of consistent financial performance as well as creating shareholder wealth.
Asian
Paint (9% of the weight)Top-line growth was seen at 2.74 per cent YoY in Q4FY18, EBITDA increased 12.13 per cent YoY, net profit went up by
The stock is a good play on the Indian consumption theme, as sales of houses have seen an uptick in FY18
Government inventive and push for housing for all will sustain growth for the company.
HDFC Life (10% of the weight)In its FY18 results, the
PAT for the insurance company stood at Rs 1,107.20 crore against the PAT of Rs 886.92 crore in FY17
Net premium earned grew 21.25 per cent compared with that in FY17
Life insurance is a heavily under-penetrated industry in India with single digit penetration
As more and more people move towards the financial system, financial products such as life insurance will see a rapid growth.
Goalkeeper:
This stock will not let the adverse forces of market score a goal in your portfolio by making you losses, these stocks will always hold your
capital in place and deliver returns in the form of handsome dividends.ITC (6% of weight)FY18 saw the company's PAT increasing 10 crore even
The EBITDA for the company expanded 890 bps to reach 39.54 crore in FY18
With increasing urban population and nuclear families, ITC will see growth in all its business verticals going ahead.
Bench: In case any of
these stocks do not perform from the main team, then the bench can be considered for investments
There are seven player benches in the football game and so should be the bench for investment portfolio
The bench comprises of Honeywell Automations, Indiabulls Housing Finance, Tata Motors, GAIL, Reliance Industries, Britannia and Hindustan
Zinc.
Teamwork is always essential whether it is in the field of sports or investments.
