The stock is currently trading at 16.3 times its estimated earnings for FY19, which means it is available at a discount to the industry average.
Reliance Nippon Life Asset Management (RNAM), the third largest asset management company (AMC) in India, is one of the key beneficiaries of the trend towards financialisation of savings with 11 percent market share (March 2018) in the mutual fund industry.
We are encouraged with demand pick up in rural market. Sales growth through Dabur's Super stockist channel, which is largely rural, was 26% YoY and augurs well for a company having sales contribution of about 45-50% from rural areas.
We had created a "defensive portfolio" a couple of months ago against the backdrop of weak growth and earnings performance. A lot has changed over this period that makes us take a re-look at the portfolio despite its outperformance over the benchmark.
Moneycontrol attempts to identify stocks that wise investors should use to duck and weave through this particular storm.