INVESTMENT IDEAS IN INDIAN AUTOMOBILE SPACE FOR ASSET MANAGEMENT COMPANIES.
Journal Title: International Journal of Advanced Research (IJAR) - Year 2018, Vol 6, Issue 11
Abstract
The Indian automobile sector contributes to 7.1% of the Gross Domestic Product (GDP). Between the facts that India is one of the fastest growing economies in the G20 and India?s under-developed public transportation system, the industry is expected to grow rapidly and offer multiple investment opportunities in both the private and public markets. This paper follows a top down approach to find investment opportunities in the publicly traded equities from the automobile sector. This paper examines 2-wheelers, passenger vehicles and auto-ancillary sub-industries to identify the most attractive sectors. On finding the most attractive sub-industry, a comparative analysis is performed on the major stocks in the given space to look for under-valued stock(s) in the given industry while staying wary of value traps. A fundamental approach is taken while studying the financial performance as opposed to a technical approach. Once an under-valued stock is identified, the paper studies the company?s prospects, cause for undervaluation and comparison of financial performance with its peers. Based on this data, projections are made for the company and accordingly 3 cases of valuation using Residual Income valuation model to evaluate the attractiveness of the investment.
Authors and Affiliations
Alaknanda Lonare, Aditya Kamat.
Keywords
Related Articles
- EP ID EP424116
- DOI 10.21474/IJAR01/8074
- Views 47
- Downloads 0
DEVELOPMENT OF DAIRY PROCESSING SYSTEMS IN URBAN AND PERI-URBAN AREA: THE CASE OF SMALL-SCALE PROCESSORS IN SOUTHERN BENIN.
Milk and dairy products contains important source of nutrients for human well-being. This dairy sector continuously subjected to economic and socio-structural changes plays an important role in Benins economy. Restructur...
WORKER S HEALTH ASSESSMENT AND OCCUPATIONAL RISK FACTORS IN THE MEAT INDUSTRY.
Health assessment of employees, as well as assessment of hygienic conditions was carried out at four meat processing enterprises in the Republic of Moldova during the 2011-2015. Indexes of frequency and duration of tempo...
THE STRATEGIES FOR ENHANCING TOURISM SMES? COMPETITIVENESS:THE CHALLENGES FACING THAILAND TOURISM SECTOR UNDER THE AEC?S LIBERALIZED TRADE IN SERVICES.
The AEC?s liberalization of trade in services brings ample opportunities and higher competition. This paper is a documentary research, adopting a meta-analysis method and narrative approach, focusing on tourism SMEs? rol...
PREVALENCE OF SLEEP DISORDERED BREATHING AND EXCESSIVE DAY TIME SLEEPINESS AMONG HEAVY VEHICLE DRIVERS IN TRIVANDRUM, SOUTH INDIAN CITY: A CROSS SECTIONAL STUDY.
International classification of sleep disorders lists more than 80 types of sleep disorders. Epidemiologic studies from different parts of India have uncovered the high prevalence of undiagnosed sleep disorders, especial...
THE IMPACT OF SUSTAINABILITY-DRIVEN ENTREPRENEURIAL EDUCATION ON THE ENTREPRENEURIAL CAREER OF FEMALE UNDERGRADUATES IN STEM AND MANAGEMENT FIELDS.
The purpose of this study is to identify exactly how higher education programmes in Management and STEM strengthen the entrepreneurial competence and innovation skills of the female students while changing their attitude...