New Delhi: Market share of a company is dependent on the likeability of product and services one is offering and in order to sustain the acceptability of a brand several periodical strategies are incorporated. According to an ET report, the rising market share of company steers it to benefit from economies of scale which in turn assists in costs savings and higher profitability, further, a larger market share helps in building confidence among existing and prospective customers and enables a strong foundation for upcoming products.
Companies with growing market share in a specific industry do have robust business models and the ability to generate market beating returns, ET report said. The newspaper had shortlisted six companies, with rising market share, which have strong ‘buy’ recommendation and significant one-year share price growth based on Bloomberg consensus estimates.
Apollo Hospitals Enterprise: Apollo Hospitals’ market share had risen to 46 per cent at the end of FY18 from 41.6 per cent as at FY14. According to ET report, 21 analysts have a ‘buy’, two have ‘hold’ ratings and the stock has an upside potential of 13.7 per cent from share price of Rs 1,233.
CCL Products (India): CCL Products’ market share had grown 14.8 per cent from 10.6 per cent in the similar time. According to ET report, the stock of CCL Products has an upside potential of 28.3 per cent from share price of Rs 269 and nine analysts have a ‘buy’ and one has ‘hold’ rating.
Dixon Technologies (India): The market share of Dixon Technologies has taken a sharp rise in the corresponding time as at the end of FY18, the company’s market share was 22.1 per cent while it was 3.9 per cent at the end of FY14. According to ET report, the stock has an upside of 36.1 per cent from share price of Rs 2,052 with 10 analysts having a ‘buy’ and only one ‘sell’ rating.
Grasim Industries: Grasim Industries seems a market leader in its industry as the company commands a market share of 93.2 per cent at the end of FY18 while it was at 64.8 per cent at the end of FY14. According to ET report, stock has an upside of 27.7 per cent from a share price level of Rs 861 with 11 analysts having a ‘buy’ and only one ‘hold’ rating.
KEI Industries: KEI Industries too have seen a considerable rise in the market share as at FY18’s end it was at 15.7 per cent while it was 10.7 per cent at the end of FY14. According to ET report, shares of KEI Industries have an upside of 36.9 per cent with 12 analysts having a ‘buy’ rating.
Maruti Suzuki: Maruti Suzuki, India’s largest automaker by market capitalisation, market share and annual turnover, is an undoubted winner. In the aforementioned time frame, Maruti Suzuki’s market share had risen to 48 per cent from 40.6 per cent. According to ET report, the stock of Maruti Suzuki has an upside of 7.9 per cent from share price level of Rs 7,630 with as many as 43 analysts having a ’buy’, six ‘hold’ and three with ‘sell’ ratings.
