10 stocks to make young investors crorepatis

[K.Karthik Raja]

10 stocks to make young investors crorepatis

It fell like the proverbial house of cards.

The 30-stock benchmark of the Indian stock exchange, the Sensex,
recorded its biggest crash on January 21. The index closed the day at
17,605 points, down a precipitous 1,400 points.

While the event is likely to send shudders down the spines of
investors across all age groups for the young brave hearts amongst you
we have got ten stock picks that can make you millionaires.

The caveat, however, is that you need to hold them for a long period:
ten years if you can to reap the benefits of picking stocks that will
create value for you.

We asked brokerage house K R Choksey Shares and Securities to hone in
on ten stocks that will create value for investors in the long run.
Gaurang Shah, vice president, equity research at K R Choksey Shares
and Securities came up with these ten gems for long term investors
just a few days before January 21. Over to him.

Here are our top picks which have the potential to be multibaggers ( a
stock that grows manifold over a period of time) if held with an
investment horizon of ten years: Large caps are selected because of
their proven track record and ability to grab mega opportunities
through their financial strength. Mid caps if the management has the
vision and management band width to scale up rapidly to become large
caps.

They are grouped under the following themes:

Commodities:

~ Reliance Industries [Get Quote] (Perennially evergreen company)

~ Reliance Petroleum [Get Quote] (Largest refinery with very high
Nelson complexity index that will lead to highest gross refining
margins, GRMs)

~ Gujarat NRE Coke [Get Quote] (integration from coking coal to coke)

~ Tata Steel [Get Quote] (formerly Tisco; lowest cost producer of
steel plus large value addition through Corus acquisition)

~ Hindalco [Get Quote] (lowest cost producer of aluminium plus large
value addition through Novelis Fusion Technology)

Market crash: A quick guide for young investors
~ Sterlite Industries (commodity powerhouse at a time when globally
commodities are in a super cycle)

~ Sesa Goa [Get Quote] (largest reserves of iron ore in private
sector)

I am including many stocks in this sector since global commodities
will be on the upswing for the next 5 years.

Telecom

~ RCom (marketing aggressiveness plus financial engineering plus
political acumen)

Auto

~ Tata Motors [Get Quote] (from world's cheapest car to luxury Jaguar
to SUV Landrover to trucks -- will be in global top five in 5 years)

Finance

~ ICICI Bank [Get Quote] (proactive, aggressive fund raising and
lending taking full advantage of slow decision making at PSU banks)

Making money vs creating wealth in stocks
~ Reliance Capital [Get Quote] (straddling all areas of non-banking
financial services)

Infrastructure

~ L&T (another evergreen company -- value unlocking through listing of
subsidiaries, very strong core business)

~ Patel Engineering [Get Quote] (strong position in high margin high
technology construction sector, real estate development)

Pharma

~ Glenmark [Get Quote] (innovator, outlicensor of drugs in fast
growing therapeutic areas like lifestyle diseases)

~ Cipla (innovator copier -- low cost supplier of essential medicines
people can't do without)

Realty

~ DLF (proxy for the Indian real estate sector)

~ Unitech (number 2 and tries harder than number 1)

~ Sobha Developers [Get Quote] (fully integrated real estate
contractor who graduated to property developer status)

Courtesy:

K R Choksey disclaimer:

All reasonable care has been taken to ensure that the information
contained herein is not misleading or untrue at the time of
publication. However, we make no long standing commitment as to its
accuracy or completeness. All information is for the private use of
the person to whom it is provided without any liability whatsoever on
the part of K R Choksey Shares & Securities Pvt Ltd. or any associated
company or any member of employee thereof.

The company K R Choksey Shares & Securities Pvt Ltd may have open and
investment interest in the stocks mentioned herein. Nothing contained
herein should be construed as an offer to buy or sell or a
solicitation of an offer to buy or sell. The value of any investment
may fall as well as rise. Investors are advised to avail personal
counseling from our research or dealing desk if they wish for any
further clarity or clarifications in the understanding on various
aspects of investment.