Two stocks that will help you make money: Siddharth Sedani, Anand Rathi Share & Stock Brokers

In a chat with ET Now, Siddharth Sedani, Vice President - Equity Sales of Anand Rathi Share & Stock Brokers, shares his wealth creation ideas.

Edited excerpts:

It is so quiet in the equity markets. What is the first idea you have got?

The first idea would be Yes Bank. In terms of the private banking space which has posted results, it has been one of the best performers as far as numbers are concerned. On demonetisation, we have not seen much of a hit on the numbers. It has a strong loan book driven by commercial and corporate loans. NIMs were also stronger on the back of higher CASA, and strong yields from the MSME loans. We subscribe to Yes Bank with a valuation of 3.7 times multiple price to book for FY18 earnings.

What about the second stock on your radar, Britannia? Why do you like it and why do you think it still makes for an investment case?

The second idea would be Britannia Industries. We like the company as we know that they are the leaders in the biscuits and cookies segment. If you look at all these years, they have done premiumisation of their portfolio which has created a niche for themselves. Over a period of time, they have increased their market share of over and above 150 bps than the competitor of Parle.

Post demonetisation, there has been a little bit of a blip but overall, we expect the company to increase their category strength. Along with that what we believe is they may increase the prices of their products on the back of higher input prices. So around 6% rise in the cost will be going higher. Along with that what we believe is a 120 bps expansion in margins are also expected between FY17 and FY19 or around 14.7% expecting a CAGR growth of 20% in earnings for the same period.