Potential Multibaggers 2.

0 - Factsheet
Portfolio
Portfolio Theme:
Company W eight N o of S tock s V alue Inv es ted
Companies with strong uptick in performance led by capacity utlisation, improving product mix, higher
margins robust cash flows and improvement in balance sheet will lead to massive re-rating of TCNS Clothing 16.4% 2 742
investment multiples. The objective of the portfolio is to generate returns of 50%-100% over period of EIH Ltd 20.4% 10 923
18-24 months Persistent Systems 23.0% 1 1040

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Bajaj Electricals 21.0% 2 947
Rationale:
V-Guard 19.1% 5 865
TCNS Clothing: TCNS clothing is poised to capture high trajectory growth opportunities in the Indian
ethnic wear segment through its three popular home-grown brands. We are positive on the long term Total P ortf olio V alue 100% 4517
outlook, considering the company’s strong brand franchise, track record of robust return ratios and debt
free status
EIH Ltd: The ongoing crisis to lead to supply reduction of 15-20% of total industry room inventory over Market Cap Distribution
next 12-18 months. With total premium room portfolio of over ~ 4800 rooms, the stock is trading at
significant discount i.e.~ 50% to its current replacement value which also remains one of the key trigger 19%
for re-rating of the stock in the long run
Persistent Systems: Companies consistent focus on large annuity-oriented deals, increase in deal sizes
and less reliance on top client bodes well for service growth in long term. Substantial cash on the
balance sheet and considering multiple levers for cost rationalisation, we expect margins to see an
improved trajectory in long term.
Bajaj Electricals: Sharp revival in demand post ease in lockdown restrictions and limited exposure in
project business coupled with debt reduction plan would lead to a significant fall in interest outgo. We 81%
expect company earnings to grow at CAGR of ~ 30% between FY20-FY22E

ICICI Securities – Retail Equity Research

V-Guard: We like V-Guard for its long term growth potential in the brown goods space. Despite
challenging conditions of lockdown, the company has generated CFO of | 216 crore in Q1FY21 with
improvement in working capital turnover. We expect earnings to grow at a CAGR of ~10% in FY20-
FY22E Midcap Smallcap

Methodology:
The Idirect Research team handpicks the stocks/ETF’s after undergoing extensive fundamental check Investment Profile
across sectors and companies through various qualitative and quantitative measures. The process
includes a 360 degree check across the fundamentals of the company. This also involves meeting the . Investment Amount - | 4517
management of the companies, meeting competitors, plant visits, doing channel check for continuous . Risk – High
monitoring and asses the future performance of the company
. Exposure – Equity Midcap & Small-cap
Defining the stock basket universe:
. Inception date – 21st August 2020
At ICICI Direct, we categorise the stock in terms of largecap, midcap and smallcap based on the market
capitalisation process as prescribed by the SEBI. . Benchmark Index – NIFTY 500

August 21, 2020 ICICI Securities Ltd. | Retail Equity Research 1

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ICICI Securities – Retail Equity Research
Pankaj Pandey Head – Research pankaj.pandey@icicisecurities.com

ICICI Direct Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC
Andheri (East)
Mumbai – 400 093
research@icicidirect.com

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Disclaimer

ANALYST CERTIFICATION

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