The way we live and do business is changing the world over.
Suddenly, gasoline is out-electric is in, conventional metals are getting replaced with carbon fibre and graphene, new uses of minerals and rare earths are being discovered and deployed, cash is going out of fashion and digital transactions are the order of the day, flying taxis, drone deliveries, and other sweeping changes are upon us.
Being stock market investors, we must cash in on the disruption. Here then is a list of companies that will enable and thrive in the new economy. However, remember to keep up to speed with technology changes. For example, shale gas exploration was hot a few years ago when oil prices touched $80, today most shale gas companies are selling assets at a massive loss.
In this post, which is a collaborative venture with our Twitter pals, we will focus on:
1. Electric vehicles
2. Waste to wealth
6. Urban modernization
7. water purification
8. Seeds (I have yet to add a couple)
This list will build up over time, therefore keep coming back for more. Else, Follow @TheBullBull on Twitter for live stock market updates.
Please send your suggestions and I will be happy to review and upload if these look good. Thanks.
Here we go:
|NALCO||Mining||82||Aluminium will be used in the manufacture of smartphones, drones, flying taxis, Evs, etc., etc. It is much cheaper than carbon fiber and graphene and National Aluminium is also setting up an Aluminium-Lithium plant in Orissa in collaboration with MIDHANI (part of Indian Defence).
Plus it has entered into an agreement with Hindustan Copper to buy or lease mines abroad.
EPS of around 2.98 in 2016-17 is expected to increase to around 4 this year.
But the biggest reason for investing in NALCO is because its products will help shape the future.
|Gujarat Pipavav||Ports||142||This is an MNC (APM of Netherlands). APM also owns the MAERSK service.
Company builds and operates ports and inland cargo services.
Gujarat Pipavav owns a port and a railway line from the port to an important junction.
EPS expected in 2017-18 is about 5-6 bucks.
However, investments in the Sagarmala project and the fact that JSW Infra and Adani are trying to acquire it make it a compelling buy.
|Oracle Financial||Fintech/Digitization||3600||Oracle will become one of the leaders in blockchain tech along with IBM and Microsoft.
Blockchain is the next gen fintech and the growing pace of digitization of money will benefit Oracle enormously.
|BASF||Chemistry||1765||We tweeted a recommendation at 1435 of this superb stock that caters to most industries.
This is an innovative company that keeps evolving with changing needs. Recently, it has unveiled range extenders and other innovations for lithium batteries, which will find takes in the EV space.
This is a superb stock that can enrich you substantially by 2020.
|Raunaq EPC||Water Pipelines||158||The company specializes in laying cross country pipelines, among other EPC expertise.
Water is a huge theme and if India has to be digital, clean and forward looking then every village must receive flowing and clean water.
The potential for this established company is tremendous.
|Ion Exchange||Water Purification||500||Superb play into water purification for all industries and residential users. Good fundamentals too.
But share is low-key and sort of a laggard in a dynamic market. Still, a good buy.
|Gravita India||Waste to Wealth||152||Manufactures lead, aluminium and plastic granules from scrap sourced all over the world.
Other major companies in the same business are Nile and Pondy Oxides.
|Siemens||Urban Technologies||1224||If any country wants to develop a smart city, or strengthen and modernise its core infrastructure, Siemens (and ABB) is the go-to company.
Very highy PE though. Track and buy when it falls, else go with ABB or Honeywell.
|Honeywell||Urban Technologies||15,995||Another stock in the league of Siemens and ABB. Very high quality and safe stock that can survive a recession.|
|Sterlite Technologies||Digitization||221.70||Vedanta group company that will emerge as the leader in fiber optic networks, smart city management|
|ITD Cementation||Country-wide infrastructure||172.80||It's the guru of infra companies. A should-have in your core portfolio.|
|HBL Power Systems||Electric Vehicle Batteries/Defence Infra||61||This company looks like a gem of a stock to own except for the fact that it's been lagging for several years now.|
|Ashok Leyland||Commercial Electric Vehicles||125||This company will slowly and surely race to the top of the EV space, giving stiff competition to M&M and TaMo.
It already is in a collaboration to manufacture EV batteries.
|Panasonic Carbon||Carbon Rods||577||Carbon will be the mineral/material of choice going forward. It will be used in most modern applications (Carbon fiber, EVs, etc.)
This high quality company manufactures high standard Carbon Rods in India and the World. Hasn't appreciated like HEG and Himadri. It's day will come.