2 stocks that will help you make money: Avinnash Gorakssakar, Moneylicious

In a chat with ET Now, Avinnash Gorakssakar, Moneylicious, discusses his wealth creation ideas.

Edited excerpts:


What is the first stock you recommend?

The first stock we like is Sterlite Technologies. Sterlite Technologies is one of India’s integrated optic fibre producers and it is one of the few companies in the world which makes optic fibre right from the silica stage. In fact, there are only 12 companies globally which make optic fibres right from the silica stage and Sterlite Technologies is one of them. In fact, the company reported a decent set of numbers for last year. The top line was roughly about Rs 2200 crore on which the company earned a profit of Rs 151 crore. This performance was post the demerger of the power conductor business and therefore the company is now a pure play in the telecom product space. We believe that going forward also, the market for optic fibre is going to grow significantly because not only in India, Sterlite Technologies enjoys a market share of more than 40% odd.

It is a big supplier of optic fibre to Chinese companies and where the market share is around 6% to 7%.

What is the next stock on your radar?

The second stock which we like is plastic processing company called Supreme Industries. Now Supreme Industries is a well established plastic processing company which has been in the market for the last almost 35 years.

It has five prominent business divisions which include plastic piping, processing, industrial products, consumer products and composite products. The main revenue for the company currently comes from the plastic piping and the processing business which accounts for almost 70-75% of its top line but going forward both the plastic piping as well as the composite products are going to be key drivers for the business. In fact, the plastic piping business is going to be a direct play on the domestic housing sector as well as on the Smart City initiative which the government has announced.