Stock Recommendations For Your Portfolio

Bharti Airtel | BSE CODE: 532454 | Volume:  220865 | CMP: Rs 291

With pricing power in favour of the telecom companies again, Bharti Airtel (BAL) may witness better movement going forward. The quasi consolidation in this space is also likely to help the incumbents. Going forward, BAL is likely to witness better performance in the coming quarters on the back of better growth in the minutes of usage (MOU) and price increases resulting into better revenues per minute (RPM). The company is also likely to report better EBITDA in this quarter and significant improvement of capital expenditure yields, which would translate into improved return on equity (ROE). The icing on the cake is that the company has recently repaid Rs 6700 crore of debt, which will result into an 11 per cent savings in interest cost. The stock prices have corrected recently, and this provides investors with an attractive opportunity to enter the stock for the medium term.

IndusInd Bank | BSE CODE: 532187 | Volume: 855887 | CMP: Rs 502  

IndusInd Bank has been an outperformer when we talk about the private players in the banking space. In the last five years, under an able leadership, the bank has grown its net profit more than tenfold. Its bottomline has grown from Rs 80 crore in FY08 to Rs 1061 crore in FY13. It should be noted here that the time span mentioned above included two years that were really bad for the global economy. The bank has a strong focus on the consumer lending sector on the asset side and on improvement in liability franchisee. Its asset quality continues to be robust. The bank also has a diversified loan book, which is an added advantage. It plans to scale up the Current Accounts and Savings Accounts (CASA) from around 28 per cent presently to 34 per cent over the next couple of years. This should help it to improve on profitability front going forward. One can look at entering this counter from a medium-term perspective.