Is this the perfect time to invest in some companies that are showing promising growth?

Have you been keeping an eye on the recent rally in the stock market?

The FED’s recent comments have made the market re-price Interest Rate expectations with Recession almost being a “given”.

The market has recently seen a decent correction from its highs, which may have caused fear and hesitation. You may be wondering if it’s still a good time to invest in top-performing companies. The answer is yes! Our carefully curated portfolio includes some of the best-performing tickers that are still poised for significant growth.

Let us introduce you to some of the top companies in our smallcase. These companies have been carefully selected based on their strong fundamentals, growth potential, and profitability.

1. Jindal Stainless Limited (JSL)

Jindal Stainless Limited (NSE : JSL) a leading steel producer, has shown consistent growth in revenue and profits over the years. With a weight of 9.92%, it is a significant holding in our Sector Advantage smallcase.

As the demand for steel increases in the infrastructure and construction sectors, JSL is poised for significant growth in the coming years.

Since 2017 the company has never registered an annual operating margin of below 9% and we were hopeful FY23 would not be the first. Once our team was able to validate the company was added to our portfolio end of November 2022, and since then the stock has made our investors 50% in 3 months.

2. Finolex Cables

Finolex Cables (NSE : FINCABLES) is a leading manufacturer of electrical wires and cables in India. The company has been consistently increasing its revenues over the past few years. This stock has 7% weightage in our Sector Advantage smallcase.

One of the key reasons behind Finolex’s success is its strong product-market fit. 

The company has been able to position itself as a leader in the electrical wires and cables market in India, with a 22% market share. Unlike its competitors, Finolex has remained focused on its core business, deriving 85% of its revenue from electrical wires and cables. This has allowed the company to develop a deep understanding of its market and customers, enabling it to offer high-quality products at competitive prices. We added Finolex Cables in Jan 2023 and have made 30% from the stock in less than a month.

3. Blue Star

Blue Star (NSE : BLUESTARCO) has been around for 8 decades and is a leading player in the air conditioning and refrigeration segment, This stock has a weightage of 7% in our sector advantage smallcase and is well-positioned to benefit from the growing demand for energy-efficient products.

In recent years the company has established itself as a dominant player in the domestic inverter and water purifier market. Additionally, they have expanded globally in strategic key markets like Qatar and Dubai, where they can sell both air conditioning and water treatment products. This diversification strategy has paid off in more ways than one.

They have maintained their position as a leader in the segments they operate in, with best-in-class after-sales service. We added this company to our portfolio in August 2022 and since then, has generated over 40% returns for our investors.

4. Balkrishna Industries

BKT (NSE : BALKRISIND) is a leading manufacturer of off-highway tires (used off-road and in construction heavy machinery), serving a diverse range of applications including agriculture, construction, mining, and industrials. BKT holds a weightage of 6.73% in our Sector Advantage smallcase.

BKT is committed to sustainability and has implemented initiatives to reduce its carbon footprint, enhance energy efficiency, and promote social responsibility.

The company has a strong presence in key markets across the world, and has been consistently delivering strong financial performance, with revenue and EBITDA growing at a CAGR of 17% and 18%, respectively, over the last five years. We added this company to our portfolio in February 2022.

In conclusion, these are some of the additions to the Sector Advantage smallcase which have played out well and continue to look promising.

Craving Alpha is a SEBI Registered Investment Adviser (SEBI Registration No. INA300017038). The research and reports express our opinions which we have based upon generally available public information, field research, inferences and deductions through are due diligence and analytical process. To the best of our ability and belief, all information contained here is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable. We make no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results obtained from its use. This report does not represent an investment advice or a recommendation or a solicitation to buy any securities.