According to Ajay Bodke of Prabhudas Lilladher RBI will adopt a more cautious stance and will wait it out till the Union Budget.
Ajay Bodke of Prabhudas Lilladher in an interview to CNBC-TV18 shared his views on what to expect from the market going forward from the sidelines of the smallcap and midcap conference held by them.
According to him the market currently is focused on two events. One, the winter sessions where there is lot of hope on some of the reforms like the GST Amendment Bill, FDI in Insurance being hiked and the amendments to the Land Acquisition Act being passed.
Two, RBI policy on December 2. He thinks RBI will adopt a more cautious stance and will wait it out till the Union Budget and see the quality of fiscal consolidation that the government attempts.
Meanwhile, he says globally the cues are still positive.
From the sidelines of the conference they have listed some stocks that the house would now focus on; AurionPro Solutions and Meghmani Organics from a medium-term investment perspective.
They would also look at Orbit Exports and also Century Plyboard from a 3-5 year time frame.
AurionPro Solutions is a company that has a strong business in terms of implementation partner for Oracle. In the Indian context they have a very marquee client, most of the banks in telecom companies, they do billing for them. IT consulting as well the Oracle solutions is the two main areas that they are in. They compete with some of the high end consultants like Accenture, Deloitte and others in terms of the Oracle implementation that they do.
Meghmani Oragnics is expecting around 25 percent growth both for its topline and bottomline. It is present in agro-chemicals as well as the pigments business.
Meanwhile, Orbit Exports is present in fabrics especially in the Jaquard business. It has grown quite strongly and is expecting 20 percent growth CAGR over next three years in topline and bottomline, and very strong return on equities (RoEs) of 28-29 percent, as well as strong EBITDA margins of around 26-27 percent. The company expects to maintain those margins over the next couple of years.
Century Plyboard has moved up and if you take a three to five year call we still feel that it offers a very good opportunity. It is a play on the consumer business in the country.