The year 2018 has seen a couple of non-Nifty companies — HDFC Standard Life Insurance and Avenue Supermarts — crossing the ₹1-trillion market capitalisation mark.

Three others, Bajaj Finance, M&M and Vedanta, from the Nifty index, also touched this coveted mark.

This is thanks to their robust fundamentals and strong investor demand.

In FY18, M&M’s overall performance was better than Tata Motors and even Maruti Suzuki (on profitability front). Even in the last one decade prior to FY18, M&M’s performance had been modest but steady, according to data provided by Capitaline. Shares of Vedanta are in demand due to value buying (lagged its metals peers in last one year), acquisition of Electrosteel Castings and the company’s intention to enter new business (read steel).

 

 

 

Best in insurance space

Analysts have been bullish on HDFC Standard Life Insurance since its listing in November 2017 and the company’s shares have gained more than 70 per cent in six months. In FY18, the company’s topline grew 6 per cent but its net profit jumped 24.3 per cent.

Buying interest in the company’s shares will be sustainable as majority of analysts see it as the best insurance stock.

Outlook has been positive on non-banking finance companies due to their robust growth rates and strong business potential.

Bajaj Finance, a subsidiary of Bajaj Finserv and an NBFCdealing in consumer finance, small and medium-sized enterprises, commercial lending and wealth management, is among the leading ones.

The company’s topline and bottomline have grown at compounded annual growth rate of around 40 per cent each over the last decade (FY17-end). In FY18, the two jumped more than 30 per cent and 40 per cent, respectively.

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