Transportation - Shipping

Shipping in India plays an important role in transporting vast volume of goods across the hinterland. Higher global GDP growth had paved way for more expansion and growth in the sector and had slowly transformed from cylical to non-cyclical. Indian players have good operating structure and profit margins compared to the global competitors. Indian economic boom will definitely help the sector to reach great levels in coming years. Essar Shipping, Mercator Lines and Varun Shipping are best picks in this growth-demand driving sector.

Energy - Power Transmission & Equipment sector

Power sector reforms were initiated in 1991 in India. Electricity Act 2003 was a major step that solved major underlying problems. Now, the sector is in growth phase with many projects in anvil as part infrastructure creation. Transmission & Equipment sector acts as a sandwich provider between the energy producer and the end consumer. The sector has only a bunch of players. Alstom Projects, Kalpataru and KEC International are best picks in this power playing sector. KEC International is also implementing projects in Middle East outside India.

Banking - Public Sector banks (PSBs)

Banking sector in India is in early stage compared to US and Europe. This may be due to high regulations from time to time by the central bank. There is a strong thrust for rural and retail banking roping on pro-agriculture governmental reforms and growing middle class population. Big underpenetrated market holds big opportunity for existing PSBs with good number of branches and also have strong regional presence. Indian Overseas Bank, Allahabad bank and Andhra Bank are best bet in this sector based on their rising net profit and organic growth compared to other PSBs.

Entertainment - Film production, distribution & exhibition stocks

Indian film industry is one of the largest in the world producing more than 1000 native films annually. The industry is growing at a CAGR of 16% and also gaining global audience in Europe and North America. More multiplexes are coming up in tier II and tier III cities. The corporatisation of film industry led to enhancement of revenue margins and discovery of new revenue streams. Pyramid Saimira, Inox Leisure and PVR Cinema are emerging stars in this evergreen sector.