NEW DELHI: JPMorgan has picked up six stocks in the midcap space which they think could outperform the markets in 2015.
These stock picks are based on a bottom-up analysis, where JPMorgan thinks that earnings revisions are likely to be positive and valuations could continue to see upward revisions.
LIC Housing Finance Ltd:
Key fundamentals supporting the stock should be strong growth in individual housing loans coupled with build-up of project/LAP book which should lead to some margin improvement.
Interest rate declines will likely get passed on; however it will also be beneficial for loan growth which should accelerate back to over 20 per cent levels.
Regulated earnings should get a boost post the completion of the Haldia plant. Resolution of PPA issues in Chandarpur and improvement in operating trends of subsidiaries (First Source/ Spencer) should aid consolidated earnings.
Indian Hotels Company Ltd:
JPMorgan expects supply side pressures in the industry to start easing and ARRs to start inflating. Government policy on tourism/online visas can be a game-changer for the industry. Operating leverage in the bu ..
In JPMorgan's view, this company is best positioned to benefit from a pick-up in the Mumbai residential market which is down 70 per cent from the highs. Launch of 3 large residential projects along with liquidation of unsold completed inventory in projects should make F16/17 one of the best years in terms of pre-sales for the company.
Pidilite Industries Ltd:
Declining input (VAM prices) should give significant headro ..