ICC World Cup 2019: 3 stocks that possess the fighting spirit of Jasprit Bumrah, Bhuvaneshwar Kumar, Yuzvendra Chahal
The India vs South Africa match this week, was definitely a unique and interesting. Interestingly, you can even bring these three bowlers technique on Dalal Street as well.
In its first World Cup 2019 match against South Africa, Indian bowlers and batsmen showed great intent to start on the best possible note - a win. While batsmen from both teams struggled at the venue, Rose Bowl, Southampton, except for Rohit Sharma who scored 122 runs and took home the ‘Man of the Match’ title. But, did you know it was the performance of bowlers like Jasprit Bumrah who within first 6 overs of the match knocked down two wickets, followed by Yuzvendra Chahal taking four wickets, and Bhuvneshwar Kumar who also took two wickets. Even captain Virat Kohli, congratulated his team’s splendid bowlers for their hard work on the field. Interestingly, you can bring the incisive and bold technique of these three bowlers to Dalal Street as well and thereby identify like-for-like stock through its market performance.
Ayon Mukhopadhyay, analysts at IIFL Securities said, “The pundits have divined that the World Cup will be won not by the team with the best batting, but with the finest bowling. In a sentimental upcycle, with most positives seemingly priced in, the same could be said about the guardians of the portfolios − the bowlers who would defend the stellar 300-plus scores, to bowl that crucial outperforming 49th over in a marauding global slowdown!”
So, what do we get after the number crunching exercise? Find out below:
Bajaj Finance (BAF):
Undoubtedly among the world’s finest! In times when nagging regulations and conditions, with liquidity squeeze and various headwinds reduced its NBFC peers bludgeoned bowling machines lying around the park, BAF has not deviated from its core strength and soared.
It maintains a startlingly resilient control of its line and length, regarding cost of funds and operating expenses. Super rich valuations are warranted, as BAF remains on track to deliver over 40% profit CAGR and maintain more than 3.5% RoA. Its slower-delivery, HFC, is also improving well, adding another dimension to its lethal repertoire.
RBL Bank (RBK):
From being a one dimensional pitcher, RBK is likely to witness a sustained increase in scale and profitability for the next few years and graduate to the status of a wholetime fast bowler, set to rub shoulders with the big banks.
A well-set management team, clearly articulated strategies, focus on sectors with high-growth potential, ability to acquire adequate deposits and access to equity capital help it in clocking a consistent high pace (growth).
Tech Mahindra (TechM):
If facing an aggressive rising dollar, TechM is the ideal bowler to pitch the perfect yorker. But this performer is not just a defensive, one dimensional, death-over specialist, as growth led by telecom should drive a re-rating, with TechM still being at a discount to peers.
Finally, Mukhopadhyay added, “A fine team for not only ushering the optimism and making merry on the flat pitches, but also one that will display caution on seaming wickets, on a Global overcast & damp day.”
Indian cricket team is currently prepping for another match which is just 2 days away. The Men in Blue will be facing the Australian team, which virtually came back from the dead to beat the West Indies team.
How the Indian cricket squad plays against Australia will be eagerly watched going forward, but what you, the investor can now do, is choose the stocks that best represent the strengths of Team India's top performers Jasprit Bumrah, Bhuvaneshwar Kumar and Yuzvendra Chahal.