Showing posts from May 24, 2009

Sectors and stocks which stand to gain

These are the sectors and the stocks, which we believe would benefit the most if the reelected Congress-led government succeeds in fulfilling its promises. But forget not, these are the long-term bets and hence are prone to the short-term fluctuations in stock markets!


The cement sector during FY 09 had already benefited from rural housing and government-funded infrastructure projects, which helped total despatches rise 8% y - o-y to 181 million tonnes. And if the re-elected UPA government takes fresh steps to expand infrastructure and rural projects, cement companies will be the direct beneficiaries.


ACC (CMP: Rs 729, P/E: 11)

For instance, Holcim-controlled ACC, which is an pan India player and one of the leading players in the sectors, would benefit from such an infrastructural push by the government. During CY 08, this company had grown its despatches by 4.9 % y-o-y to 20.86 million tonnes.


The government's initiatives to infuse growth in rural infrast…