What are the long-term prospects of the following stocks: CDSL, HDFC, IRCTC, TATA MOTORS, TCS, Tata Power, KIMS, MOTHERSONSUMI, NAZARA, HUL, CASTROL, DMART?

Let us go through the stocks that have been stated here one by one

With more and more retail investors joining the investing wagon, the depositories CDSL & NSDL are set to gain. Considering the current penetration, there is a lot of scope for returns in the form of ROI/ROE

CDSL: Stock Performance for the Past Year

The stock has given a decent return in a covid hit market. I would hold on to it as, after the Omicron strain, the Covid-19 pandemic can possibly become endemic.

HDFC: Stock Performance for the Past Year

This is a solitary player in this segment and enjoys a headstart even if the government allows players sometime in the future. With the recent stock split, the organization has ensured liquidity in the secondary markets.

IRCTC: Stock Performance for the Past Year

The stock has rallied a lot since the veteran investor, Rakesh Jhunjhunwala has taken a position in this. Despite this, the company has a lot of value left in terms of commercial and retail space. Also, with the developments happening along with the electric vehicle space, Tata Motors is well poised with some models already running on the Indian streets.

Tata Motors: Stock Performance for the Past Year

Along with HCL, Infosys, and Wipro, the stock has been a value creator for its shareholders and its customers. With the focus on Cloud Computing, AI, and Blockchain going ahead, TCS is well poised for tapping into this growing need.

TCS: Stock Performance for the Past Year

Another value creator from the Tata stable. The stock has rallied a lot with many calling it to be overvalued. Despite this, the value lies in the underlying SED (Strategic Electronics Division) arm of Tata Power that works with the India Armed Forces and is looking to tap into International Markets

Tata Power: Stock Performance for the Past Year

Despite having given solid returns in the past year, I would be skeptical to hold any hospital stocks for the long term as the sector itself cannot be run on an automated mode like car or machine manufacturing. Also, it can be cash-intensive that can dent returns. This holds true for Narayana Hrudayalaya also.

KIMS: Stock Performance for the Past Year

Since IPO, the stock has had an amazing run. Also, this is one of the only stocks in the space that is doing well in the gaming space. Considering this, there is a lot of value unlocking left despite it looking expensive on the P/E or EPS, or P/B terms.

Nazara Tech: Stock Performance for the Past Year

A standout FMCG Player that has performed in the bear-bull market has lagged in the recovery phase after the 2nd Covid Wave. Despite this, it is a regular dividend-paying innovative player that has its eye set on competing with unorganized play in the Tier-3 & 4 cities where there is still potential for growth.

HUL: Stock Performance for the Past Year

Despite the returns, I will be skeptical about the prospects of returns. The reason is the competition coming from startups and other players. With the margins being less and cash burn being the flavor of the season, DMART will have an uphill task to safeguard its moat and retain the earnings growth that it has been able to deliver. It is a neutral bet on a 3–5 year horizon.

Avenue Supermarket(D-Mart): Stock Performance for the Past Year

The stock has been a laggard despite being having a number uno position in the world. The Indian arm is facing competition from the products made by competitors like Gulf Oil(which has also underperformed) and Oil Marketing Companies like IOCL, BPCL, HPCL. With the transition set to be from IC Engine to Electric Traction based Vehicles, Castrol is trying to carve out a niche with the development of fluids for the same.

Castrol: Stock Performance for the Past Year

A well-managed company that caters to different markets around the world is a must-have auto ancillary stock among its peers. This has a long way to go in terms of realizing its full potential considering the restructuring and M&A undertaken.

Motherson Sumi: Stock Performance for the Past Year

Hope this is helpful. Happy Investing!!

References:

  1. IRCTC shares turn ex-split: Here’s all you need to know how a stock split works
  2. Central Depository Services (India)’s (NSE: CDSL) 92% CAGR outpaced the company’s earnings growth over the same three-year period
  3. Buy Tata Motors, target price Rs 550: Emkay Global
  4. Shares of Tata Power rise as Nifty gains
  5. ELECTRIC VEHICLE FLUIDS | Automotive & Industrial Engine Oil & Fluids
  6. Motherson Sumi Systems Rating: Buy- Firm well placed to gain from any auto revival

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