The coronavirus has impacted India’s imports from China, and has disrupted the supply chains across the world. India is at 17th position among the 30 countries most prone to import cases of coronavirus. Indira Gandhi International Airport in Delhi is the most prone area in India, according to a recent study by the Humboldt University in Berlin. However, this could be a relief for domestic companies who compete with China. “Electronic equipment, organic chemicals, fertilizers and plastics are top import areas from China that are going to get the benefit of fall in imports from China,” Santosh Meena, Senior Analyst, TradingBells. Given below are some stocks that are expected to gain from India’s falling imports:
Dixon Technologies: The cost of production is increasing in China as the companies are moving from China to India, and Dixon technologies is a major beneficiary of this phenomenon. “Dixon technologies is our top pick in the electronics equipment segment. Synergy with marquee names like Samsung and Xiaomi is also a key factor for the vertical growth of the company,” TradingBells said. The brokerage has set a one-year target price of Rs 5,500 on Dixon Technologies share, an upside of 19 per cent. Around 12 noon, Dixon Technologies shares were trading marginally higher at Rs 4,631.6 apiece on BSE.
PI Industries: PI Industries is an agrochemical company, known for chemistry and engineering-related services. “PI Industries is the leading player in Agro Chemicals which is getting major benefits from falling imports from China of Fertilizer and Chemical products. PI Industries is ready for multi-year growth in the CSM segment because of its enhanced R&D, supply scarcity related issues in China,” TradingBells said. The brokerage company has set a target price of Rs 1,920 for one year on PI Industries share price, which is an upside of over 23 per cent. Shares of PI Industries were trading 0.64 per cent lower at Rs 1,548 apiece on BSE in Thursday’s trade.
Supreme Industries: Supreme Industries is a large Indian plastics company. “Plastic products are the major beneficiaries of falling crude oil prices and imports from China where Supreme industries are one of the leading players in the industry,” TradingBells said. The shares of Supreme Industries were trading 0.23 per cent lower at Rs 1,387.20 apiece on BSE. With an investment target of one year, the brokerage company has set a target price of Rs 1,660, an upside of over 19 per cent.