As India Inc readies itself for an economic revival with consistently falling inflation and government spending/reforms, Motilal Oswal has identified companies, which are already good bets, will prove to be better bets as they took advantage of the slowdown in the past few years to reap disproportionate benefits in an economic upcycle.
Motilal Oswal has categorised companies as static value and dynamic value picks. "While Static Value hinges upon deep discount to intrinsic value, Dynamic Value is driven by growth in intrinsic value," it pointed out.
The static value picks are Tata Motors, Indian Oil Corporation, ICICI Bank and IDFC.
The dynamic value picks are Maruti Suzuki, Larsen & Toubro, Ultratech Cement, Zee Entertainment, IndusInd Bank, ITC and United Spirits.
Intrinsic value is defined as the value of a company, stock, currency or product determined through fundamental analysis without reference to its market value. It is calculated by summing the discounted future income generated by the asset to obtain present value.