The bond of friendship is not only important between humans, but it also has great significance in the world of investment. Just as there are different types of friends in our daily life – some stand with us in every happiness and sorrow, while some are seen only in good times – similarly, there are some stocks in the stock market which support you in every situation.
On this special occasion of Friendship Day, Zee Business Managing Editor Anil Singhvi and his expert research team have divided stock market stocks into seven interesting categories of friends. Let’s find out which stock could be a ‘friend’ for your portfolio.
1. Best Friend Forever (BFF): Larsen & Toubro (L&T)
Everyone has that one true friend who stands by them like a rock through thick and thin. Many names came up in this category, but the team’s first choice was L&T (Larsen & Toubro).
The reason: the company’s strong business model and long-term growth. The country’s largest infrastructure and engineering company has a massive order book of approximately ₹7.8 lakh crore, providing a secure and solid foundation for earnings for years to come.
2. My Twin Friend: Manappuram Finance & Muthoot Finance
Just as twin friends often behave alike, some stocks also move in a similar manner.
Reason: Manappuram Finance and Muthoot Finance were selected in this category. The boom in the gold loan business, rising gold prices, and the growing tightening of unsecured loans have created a significant market opportunity for these companies.
3. Day 1 Friend: Mazagon Dock
There are some friends who stand by you from day one.
The reason: Mazagon Dock is among the few stocks that have consistently delivered strong returns to investors since its listing on the stock market. Growing defense needs and a strong order book (over ₹20,000 crore) make it an excellent long-term option.
4. Homie Friend: Eternal (Zomato / Blinkit)
Some friends become part of the family and become an important part of our everyday lives.
Reason: ‘Eternal’ (Zomato/Blinkit) has been named the top choice in this category. Quick commerce platform Blinkit has completely transformed consumer shopping habits. The convenience of delivering goods at home within minutes has propelled this business to new heights, positioning it to become a wealth creator of the future.
5. Social Mutual Friend: Paytm
There are some people whom we know well and keep an eye on, but it takes some time to trust them completely.
The reason: Paytm plays this role in the stock market. While this stock has been a topic of debate for many investors, the growing use of digital payments and any positive policy changes in the future could lead to a significant surge.
6. Fair Weather Friend: Indigo
Some friends appear only when the environment is completely favorable to them.
The reason: IndiGo, the country’s largest airline, has a domestic market share of around 65%. However, its performance depends heavily on crude oil prices and the strength of the rupee. When fuel is cheap and the currency is strong, this stock offers investors strong returns.
7. The Squads (Theme-Based): Data Center Theme
Friendship isn’t limited to just one person; sometimes, the entire group is special. In stock market parlance, this is called “theme-based investing.”
The reason: The team’s primary focus was on the data center theme. The growing use of artificial intelligence (AI) and the demand for data storage have opened up immense potential for this sector. Data center companies, along with power, cooling, and cable companies, are also directly benefiting from this.