*Festival-linked cos outshine Sensex** * *Source: http://m.economictimes.com/PDAET/articleshow/5111248.cms* * * * <http://m.economictimes.com/PDAET/articleshow/5111248.cms>NEW DELHI: Call them firecrackers. Diwali related stocks — paints, wood and consumer durables — outperformed all BSE Sensex, BSE Mid Cap and Small Cap indices during this year, thanks to strong domestic consumption.
According to a SundayET analysis of all stocks from industries such as paints, wood and consumer durables gave year-to-date return of 106%, whereas, the Sensex and BSE Mid-Cap Index appreciated by around 70% and 91%, respectively , during the same period. Also, these Diwali related stocks outperformed the BSE Small-Cap Index with significant margins. BSE Small-Cap Index went up by around 95%. As far as individual companies are concerned, among consumer durables, Whirlpool of India and Gandhimathi Appliances, a key player in the stainless steel appliances segment, posted a return of 298% and 237%, respectively, during the period. People buy a lot of furniture during Diwali and it seems share prices of wood companies are factoring that in. Greenply Industries and Jolly Board gave a return of around 131% and 108%, respectively. Even the stocks of paint companies are shining . Share prices of Kansai Nerolac Paints and Berger Paints India appreciated by 111% and 73%. In fact, of 30 companies, which were part of the analysis, 29 stocks gave a year-to-date return of over 30% and as many as 13 companies posted more than 100% return. Domestic consumption remained the main factor for outperformance. According to Kishor P Ostwal, CMD at CNI Research, the future of these firms is bright as they mainly depend on local demand. Due to improvement in the lifestyle and disposable incomes in rural India, these firms saw a demad rise. Aseem Dhru, MD & CEO of HDFC Securities, agrees with Ostwal. He, however, thinks that the valuation has become a bit expensive . “Currently some of these stocks are trading at very high valuations. Also, since these stocks have rallied substantially, there may not be a very high upside in the short term,” says Dhru. These companies also outperformed companies of the Sensex, mid cap index and small cap index on aggregate basis so far as net profit growth is concerned during the quarter ended June 2009 against the quarter ended March 2009. * * *-- Regards, Hiral Thanawala --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
