MOSL: Morning India (27/June/17)-1. Contrarian Investing (Thematic)-It pays to be different; 2. Financials-3. Page Industries (Corner Office); 4. Arvind
​MOrning India (27/June/17): 1. Contrarian Investing (Thematic): It pays to be different; 2. Financials; 3. Page Industries (Corner Office); 4. Arvind
Today’s top research idea
Contrarian Investing: It pays to be different; Identifying contrarian investment strategies that work
In this report, we have analyzed Contrarian Investing in two buckets: A] Popularity based on Consensus Ratings and B] Valuation multiples. Our findings suggest that:
A] Neutral to moderately popular stocks deliver significant outperformance.
B] Low P/E stocks deliver disproportionate returns, significantly beating the benchmark.
C] Strategy of investing in stocks for which analyst consensus has changed from “net sell to net buy†with a holding period of one year has delivered 24.1% annual returns over the last 10 years.
The application of our framework on sectors suggests that opportunity for contrarian investing is best in the Pharma sector. However, we still do not believe that the IT sector qualifies for Contrarian Investing yet.
Contrarian BUY ideas: AXSB, BJAUT, CLGT, COAL, IDEA, PNB, RECL, SHTF, SUNP & TECHM.
Contrarian SELL ideas: APNT,BAF,ESC, GAIL, LICHG, IOCL,EIM, VOLT.
Piping hot news
Reliance Industries seeks shareholders’ nod to raise Rs25,000 crore via debt
Reliance Industries Ltd (RIL) has sought shareholders’ approval to raise as much as Rs25,000 crore through debt to meet capital expenditure, the firm said in a stock exchange notice.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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