Indians were on a spending spree last year. But those who shopped for gold have reason to be satisfied with their purchase — gold price has seen a 26 per cent rally this year!
In rupee terms, gold prices have shot up by Rs 400/gram (Standard 24 carat gold), a 22 per cent run up. In contrast, stocks weren't a better play — the benchmark Sensex is up just 15 per cent year-to-date.
Investments can be considered in the stock of IPCA Laboratories as the company has a stronghold in the domestic formulations business and may see higher exports on regulatory approval of its new facility. At the current market price of Rs 332, the stock trades at about 14 times its likely FY-12 per share earnings. This is at a discount to its larger peers. The stock's valuation could improve in the next couple of years as the company puts in sustained improvement in performance. The stock, therefore, makes a good bet for the long term.
For multiplex operators such as Cinemax, a reviving economy has meant higher footfalls, increase in ticket prices and higher spending by the cinema audience on food and beverages, all aiding the company's earnings. Investors with a one-two year horizon can buy the shares of Cinemax India.
The domestic hardware and software industry is set to witness expansion in segments that are led by the Government's increased spending on information and communications technology (ICT) over the next two to three years.