With indices back in the green in June, Yes Securities has included 2 new stocks in its portfolio, while reducing the weight of one. The domestic brokerage included Honeywell Automation and VST Industries, while reduced the weightage of Reliance Industries in its portfolio.
The brokerage assigned 3 percent weightage to Honeywell Automation as it has outperformed its peers and delivered a stellar CAGR of 31 percent/37 percent in EBITDA/Earnings over FY16-20. The outperformance is on the back of market share gain, rising exports, and healthy margin expansion, it added.
The brokerage expects that it's outperformance will sustain based on ongoing product portfolio upgradation, focus on the software-industrial business model, faster adoption of automated solutions by domestic market post-COVID-19 era and relentless execution on cost control/productivity.
For VST Industries as well, the brokerage has assigned a 3 percent weight in its portfolio since the company is gaining market share over the past couple of years.
"VST sits in a sweet spot with regards to consumer migration as it is generally the first option for people upgrading from bidis and cheap cigarettes and a beneficiary of excessive hikes in taxation when people downgrade from ITC and Godfrey, the brokerage noted.
With a historical focus only on the lower price points between Rs4-6 per stick, the company has now entered a higher price of Rs 10, it added.
Meanwhile, it has reduced weight on Reliance Industries by 6 percent in its portfolio after the huge rally post back to back investments in its digital arm Jio Platforms.
Yes Securities model portfolio includes stocks like RIL, HDFC Bank, Jubilant FoodWorks, Kotak Bank, Alembic Pharma, Bharti Airtel, HDFC AMC, HCL Tech, Page Industries, MGL, and Birla Corp among others.
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