With rising volatility in the stock markets, even as Sensex and Nifty swing either ways making it difficult to to pick quality stocks, Ajay Bodke, CEO & Chief Portfolio Manager, PMS at Prabhudas Lilladher says that it is important to hold on to consistent performers. In an interview with FE Online, Ajay Bodke said that the stock markets will benefit from the shift from unorganised to organised sector. Further, he sees the insurance sector benefiting due to under penetration and growing businesses such as insurance should attract a longer term perspective. He also sees DIIs being a strong counterforce to FII outflows, and expects the domestic capital market inflows to grow in the coming months. We take a look at five blue chip stocks which Ajay Bodke holds in his portfolio, and is bullish on going forward.
HDFC Bank stock has been a consistent outperformer in the markets, and emerged as the second biggest wealth creator in the last five yearS according to Motilal Oswal’s recently released 22nd Wealth Creation study. Notably, it has given a whopping 22% CAGR returns over the last 10-year period. Ajay Bodke says that it is his favourite stock and a good long-term bet. HDFC Bank shares were trading at Rs 1,852 on NSE this morning.
Another private sector-lender, Kotak Mahindra Bank has proved to be a great multi-bagger along with notable return ratios. Interestingly, the bank has created wealth to the tune of Rs 1,050 billion in the last five years with share prices expanding at a CAGR of 22% in the last 10-years. Kotak Mahindra Bank shares were trading at Rs 1,077.6 on NSE this morning.
India’s largest car maker Maruti Suzuki has also been a major wealth creator for its shareholders adding nearly Rs 1,500 billion in market capitalisation in the last five years. The marked outperformance of the shares has lead to renowned fund manager Nilesh Shah dubbing the stock as world’s best performing auto stock. Ajay Bodke notes that the share has been a multi-bagger in the last decade. Maruti Suzuki shares were trading at Rs 8.776 on NSE this morning.
Billionaire Radhakrishnan Damani-run which had seen a stellar listing in March-2017, are also among Bodke’s top picks. Notably, Avenue Supermarts had listed at a premium of more than 100% at Rs 603 against its issue price of Rs 299, leading global investor Ashburton to exclaim that they had missed the bus on the company. In conversation with ET Now in September-17, Jonathan Schiessl, the chief investment officer at Ashburton Investments said that he initially felt that the company was overvalued. Ajay Bodke seems to be bullish on the shares of the company, despite the recent run-up in prices. Avenue Supermarts shares were trading at Rs 1,351.7 at NSE on Wednesday morning.
Leading Bangalore-based biscuit manufacturer Britannia Industries has also seen remarkable growth in the last two decades, are are among Bodke’s 10 multi-baggers. According to Motilal Oswal wealth creation study, Britannia Industries shares have posted returns with a CAGR of nearly 26% in the last two decades. It has also featured in many studies featuring top 100 trusted Indian brands. Britannia Industries shares were trading at Rs 4,817 on NSE this morning.