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Good Stocks to Invest

What are some good stocks to invest in right now?

Here are some opinion shared by Indian Equities Holder!
Some good stocks to invest in India are:
  • FCL
  • CDSL
  • MCX
  • Reliance Industries
  • NBCC
  • DHFL
  • ICICI Prudential
Wanna Start investing to open a demat account online in 5mins in india using aadhar: Click here
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Sensex recently touched 31,000 levels and you are still empty handed, right?
No problem, here is the deal.
Two unknown stocks which can give you best returns.
  1. MPS Ltd. ( Current Market Price : 568 Rs, Target Price : 700 Rs. , Tenure : 3–6 Months)
Why MPS ?
Brief about Company: MPS Ltd., incorporated in the year 1970, is a Small Cap company (having a market cap of ₹ 1054.74 Cr.) operating in Paper sector.MPS Ltd. key Products/Revenue Segments include Sale of services which contributed ₹ 224.04 Cr to Sales Value (100.00 % of Total Sales)for the year ending 31-Mar-2016.
> Stock is trading at 15 times of its FY17 earnings.
 > Stock PE < Ind PE, best suitable for value investors.
 > 260 Crore reserves as on date.
 > Cash inflow is 4 times greater then outflow, if you know what I mean.

> > > COMPLETELY DEBT FREE.
The best of part of reading of its annual report was ‘consistency’ 
 
Source : MPS Investors Overview > annual report >

>> Good top line number, better bottom line.
> Stock Provided 1255% returns in 5 years.
>> Promoter’s trust means a lot to any company: Here we have 68% Stake
> BULLISH ON CHARTS :
A good investment for short and long term.
2) CCL Products : (Current Market Price : 290 Rs, Target Price : 360 Rs. , Tenure : 3–6 Months)
Why CCL ?
Brief About Company: CCL Products (India) Limited, a listed public company limited by shares was founded in the year 1994 with the vision of creating only the finest and the richest instant coffee in the world. This vision has steadily steered them into an Export Oriented Unit (EOU) with the right to import green coffee from any part of the world and export processed coffee across the globe, devoid of any duties. Their strong infrastructural backbone and a global client repertoire in over 90 countries have led them to evolve into largest instant coffee exporter in private labeling in the world.
> Stock is trading at 39 times of its FY17 earnings.
 > Company has a dividend record that indicates a good cash flow in the company.
 > CCL is largest instant coffee exporter in private labeling in the world.
 > 483 crore reserves as on date.
 > Given unbeatable net profit of 122 crore vs net profit of 93 crore YoY.
> Numbers are unbeatable >

>> Stock gave 1479% returns in 5 years, rank 1 among its numerous peers.
‘Diversification’ was the best part of its annual report.
CCL Products India Ltd. key Products/Revenue Segments include :
> Coffee which contributed ₹ 669.71 Cr to Sales Value (98.53 % of Total Sales),
> Other Operating Revenue which contributed ₹ 9.90 Cr to Sales Value (1.45 % of Total Sales) and Export Incentives which contributed ₹ .08 Cr to Sales Value (0.01 % of Total Sales)for the year ending 31-Mar-2016.
>> BULLISH ON CHARTS:
For the quarter ended 31-03-2017, the company has reported a Consolidated sales of ₹ 296.97 Cr., up 6.85 from last quarter Sales of ₹ 277.95 Cr. and up 12.48 from last year same quarter Sales of ₹ 264.02 Cr. Company has reported net profit after tax of ₹ 35.27 Cr. in latest quarter.
[Only major parts of the research have been shared]
‘It takes time’, when you are analyzing a company from every possible prospective, it takes time to choose which company is better to invest ‘Now’.
why I used ‘now’? more then ‘what to buy’ you better know ‘when to buy’
better to find the ‘entry point’ so that you can make advantage of the dips.

While making stock portfolios for my clients ( under Make My Portfolio and Stock SIP Service) or while recommending stocks ( under WhatsApp Service). I TAKE TIME because It takes a day for me to analyse a single stock because I think if you are investing your money in stocks then you must know each and everything about the company, its debts, cash flows, financial health, fundamental and every technical analysis so that you can go with trend while analyzing it fundamentally.
Need a little motivation towards right investment? Don’t forget to see this video
One question again,
At the age of 87 if he can read 500 pages a day, are you not capable reading as low as 50 pages a day?
Let’s challenge Warren Buffett and read thoroughly about the company before investing.
[If you wish to add something, feel free to mail me at invest@equityboxx.comor be connected via facebook Equityboxx Facebook
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I am much sure about the below mentioned sector to out perform not only in short duration but for long duration also.
Sector:- “Housing Finance/NBFC”
Reasons behind so much focus on Housing Finance Companies:-
  1. It has been growing at a min of 30% CAGR which effectively means doubling the business and profit each 2.5 yrs which is damn good.
  2. Home loans are the cheapest, safest and best form of loans because of the heavy mortgage of homes as security attached.
  3. Home loans being quite attached emotionally to home owners, normally has much lesser defaults.
  4. With the huge need and push for affordable housing, mainly to primary segment, the housing finance domain is poised to exponential growth.
  5. As a thumb rule, scale, business maturity, profitability and growth moves in the following direction:-
    1. Labour, Manufacturing, Trading, Technology, Services, Financial Services.
    2. Home finance belongs to the top level.
  6. Home finance people get almost 3 times the money invested for a 20-yrs loan. Hence, you just need to get a customer once and your income for next 20 yrs is almost guaranteed.
  7. ARPU (Average Revenue Per User) in case of home loans is one of the highest across industries due to high Ticket Size of homes, which comes in Lakhs and now in Crores.
  8. Home finance in india is still in a very nascent stage with very small percentage of people getting or taking home loans.
  9. RERA, Adhaar, Main streaming of real estate will lead to more and more organised real estate players in the market which will automatically lead to much higher and safer business for home finance companies.
  10. Thanks to stringent loan conditions by RBI, we are still not at all a highly leveraged society, unlike USA and other developed countries.
  11. As a thumb rule, the more any country grows, across a period of time, the more interest rate gets reduced (like most developed economies have sub 1% or even negative interest rates). Hence, for a period of 20 or more yrs, this may be the best time to offer loans at one of the highest rates and hence great profitability as interest rates are going for a downtrend since past sometime.
  12. Unlike banking, still the net NPA levels are much much lesser in home finance companies as compared to banking sector.
Hence, as per my analysis, home finance companies may be one of the top three sectors for next few years or even for decades as far as stock investments are concerned.
Mentioning some of the stocks outperforming in this industry (high to low preference order) of housing finance companies based on their fundamental strength on the basis of their quality, valuations and financial trend:-
1. Can Fin Homes.
2. Dhfl.
3. Indiabulls housing.
4. Hdfc.
5. Pnb housing.
6. Lic housing.
7. Hudco.
8. Gruh finance.
9. Gic housing.
10. Ind bank housing.
I am also sharing the screen cuts of what other fundamental researchers say about some of the above mentioned stocks.
  1. Can Fin Homes
DHFL
HDFC
Hope this is helpful.
Thanks and Happy Investing :)
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"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett
Above quote is well tested and almost every Investor agrees to the same.
The present economic condition in India is quite uncertain (Thanks to Demonetization and delay in GST implementation) though with positive biased. This is the time, when market is moving with the cautious note. Already market has corrected around 10–12% from there 52 week high & just in this week market seems to accelerate the momentum. (Nifty is back at 8400 levels). Probably for me this is Entry point in the current market.
For Long term investment at current pricing my pick would be
Ashok Leyland :
Stock was performing exceptional well it has already missed the last market rally corrected till level of 72 from 116. Currently it has again picked up momentum and trading around 84.
Reason : Ashok Leyland is primarily including manufacturing of Medium &Heavy Commercial Vehicles. Ashok Leyland since past few quarters have able to increase it’s market share and has high potential for continuing this growth (Market Share of 18.5% as on March 2016). The biggest opponent to Ashok Leyland is TATA Motors and M&M. With all the tussle with TATA group Ashok Leyland will be biggest beneficiary.
Also, the other and most important part of Ashok leyland which makes it’s attractive is Shift to Defence vehicles. With GOI initiatives of Make In India and primarily focus to make India self reliant in Defence, order book of Ashok leyland is expected to expand by 2x by 2019–2020.
High growth of 39% on YOY basis in the gross sales has been reported. ALL has also managed to increase it's bottom line from 2.5% to 3.8%. ALL has also improved it's working capital management over 2 year, this could be visible from Marginal Working capital borrowings at INR 250M in FY 15 and same was NIL in FY16. ALL has provide for it's all JV investment with NISSAN aggregating INR 2960 M. due to incertainity in continuance of JV. Inspite of written off Investment, ALL managed to have healthy Net profit at INR 7218 M. ALL has decided to reduce the debt, and in line with the same no Debt/NCD has been issued during the FY16 (FINANCIALS). CRISIL expects domestic commerical vehicle sales to increase by 10-12% in FY 17 & MHCV to increase by 16%-18% on account of replacement demand from large fleet operators. Thus keeping long term prospects healthy.(INDUSTRY)
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Lets find it.
  1. PTC(last close:121.30 INR):
  • Stock is trading at 1.10 times its book value
  • Company has been maintaining a healthy dividend payout of 31.29%
  • Results:
  • Chart has formed typical reverse head and shoulder pattern, which implies significant upside :
2. ICICI Prudential(last close: 378.05 INR): The country’s insurance market is expected to quadruple in size over the next 10 years from its current size of US$60 billion. Demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will support the growth of Indian life insurance. Which make ICICI Pru a potential growth candidate.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 31.89%
  • Company has been maintaining a healthy dividend payout of 62.24%
  • Chart shows stock has gone under consolidation(which is needed for positive strength) for long time, you can expect significant positive upside.
3. Ashok Leyland(last close:118.50): One of the strong potential stocks in auto sector, I’ve already talked much about this stock in my other answers. Sales is increasing steadily, story in turning around. Hon. Modi Ji’s push of replacing all the vehicles with electric vehicle by 2030 is gonna benefit auto/auto ancillary stocks hugely. And and i find Ashok Leyland one of major beneficiary, based on strong sales, margin and overall company growth.
  • Company has been maintaining a healthy dividend payout of 43.26%
Just look at numbers below.
Even at chart AL is showing strength. I’d definitely keep it in my portfolio for long term.
Last but not the least…
4. HPL Electric & Power(last close:130.65): In long term this company is one of the major beneficiary of electric vehicle theme. With electric vehicles are going to come, charging stations, switches etc. And this stock is eagerly waiting for that. Chart shows that this stock is at perfect point to take u turn and starts moving up.
  • Company has reduced debt.
  • Stock is trading at 1.13 times its book value, which is good
I recently spotted this stock and it’s chart has really convinced me.
NOTE: Opinion is my personal.
I hope this help you. Thanks for reading.
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This recommendation has been posted on my blog The Equity Bull: Investment Idea 5 : Bhageria Industries Limited . I am copying it here for your reference.
The Company:
BHAGERIA INDUSTRIES LIMITED was established in 1989 with an objective to serve the dyes & intermediates industry all over the globe. Company commenced its operations by setting up a Vinyl Sulphone Plant at Vapi (Gujarat) with capacity of 540 T.P.A. which has now expanded to 3600 T.P.A. Subsequently Company has gone for further expansion in other Dyes intermediates & Dyestuffs.
Vinyl Sulphone, its key product have seen a huge surge in its prices since last year, expanding its margins and profitability, the price out performance is expected to remain in current year too.
Fundamental View:
  1. The Company has performed exceptionally well on revenue front this year. Its gross revenue has picked up from Rs.256 Cr in fiscal ending 2016 to 345 Cr this year, a growth of around 35 % which indicates it has been able to grab the market share being released after shut downs in China.
  2. The Net Profit too has been three fold as compared to the previous fiscal, indicating the company has been able to expand its margin along with the rise in revenue.
  3. ROE & ROCE has been phenomenal this year being 20% & 17% respectively, which are much higher than its peers.
  4. The company works on healthy operating profit margin of 11.11 %, which again is at par with large players in the industry
  5. With a Debt Equity Ratio of around 0.08 :1 it can be said as a very safe bet, Moreover the P.E ratio currently is 11 which is just half of the industry P.E.
  6. Promoters too seem to be confident about their business, the same being reflected in the increasing promoters shareholding QoQ as shown below :
Moreover, another very positive news is about its merger with Nupur Chemicals, which is gonna further expand its top-line & bottom-line, also the management depicts prices of Vinyl Sulphone (It’s key product ) to be stable. Do have a look at this recent INTERVIEW: http://www.moneycontrol.com/news...
Technical View
Although the charts signals bearishness on short to medium term but the stock is very near to its strong support, levels of 284 has been a good support as shown below. This makes risk to reward ratio very favorable
Another near term support is its 200 DMA around Rs 304.
Moreover, the recent downtrend is backed by very low volumes, indicating it would not sustain for long and trend reversal therefore is not a major issue.
Concluding Decision
Short term downfalls are where big investors find opportunities in the bull market. Bhageria has been an out performer all over, The downfall therefore should not be worried about, At CMP of Rs 307 with a stop of Rs. 284 one should take it as an opportunity like the contrarian investors do.
Best Wishes For Your Investment !!!
Thanks !!!
For More Investment Ideas and to track our previous performances visit : The Equity Bull
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Punjab National Bank (PNB) posted net profits to the tune of Rs 561 crore in the second quarter of current fiscal beating expert estimates. The second biggest public sector bank in India saw its net profit rise by 2 per cent in the September quarter as compared to the corresponding period last year and more than 63 per cent against the June quarter of the current fiscal. Operating profits posted by PNB in Q2'18 rose by 20 per cent Y-o-Y to end at Rs 3279 crore.
PNB saw its gross NPA ratio reduced to at 13.31 per cent during Q2 in 2017-18 in comparison to 13.63 per cent seen at the end of September 2016. The bank's net NPA ratio slid to 8.44 per cent in this quarter from 9.10 per cent recorded at the end of September quarter last year.
NPA ISSUE- ₹ 9,000 crore is locked up in 5 steel companies and Steel sector is looking for a very good upside because of infrastructure push by the government so let’s hope for a better resolution .
With the NPA concerns becoming a thing of the past , efforts to recapitalise banks , rising profits and growing loan book , PNBs future looks promising .
Indraprastha Gas Ltd is the sole retailer of CNG in national capital region. The company reported 44 per cent jump in net profit for the June quarter on a rise in gas sales and lower interest cost.
Sales volume grew 13 per cent to 4.34 million standard cubic meters per day from 3.83 mmscmd a year ago.
The two main business objectives of the company are -
To provide safe, convenient and reliable natural gas supply to it's customers in the domestic and commercial sectors.
To provide a cleaner, environment-friendly alternative as auto fuel to Delhi's residents. This will considerably bring down the alarmingly high levels of pollution.
Recently licenses for gas distribution in Karnal, Haryana went to IGL.
INDIA GEARS UP FOR CNG IN TWO WHEELERS
IGL with its parent company GAIL started this flagship program.The government’s focus on reducing pollution and encouraging use of eco friendly means of transport can prove to be a game changer for this company .
The CNG volume growth of IGL will be aided by the aggressive plans of Delhi Integrated Multi‐Modal Transit (DIMTS) to add buses and the initiative taken by Delhi government to introduce new blue‐line buses, which is meant to facilitate last mile connectivity for Delhi Metro.
The PNG business of IGL represents a long-term opportunity with low penetration of approximately 10 per cent in the domestic segment which will boost IGL sales as it expands itself geographically in Greater Noida, Ghaziabad, Sonepat, and Panipat. In addition to this, the overhang of regulation of compression or network tariffs has disappeared.
IGL had acquired 50 per cent stake in Maharashtra Natural Gas (MNGL); this acquisition will grant the company entry into Pune with good growth potential.
The prospects for volume growth remain positive with 10 per cent CAGR over the expected 2018-2020 period, driven by addition of buses, higher conversion of cars and foray into high‐potential Gurugram and Rewari markets.
This makes IGL a good buy.
Aditya Birla capital-Aditya Birla Capital Limited (ABCL) is one of the largest financial services players in India . It has strong presence across the life insurance, asset management, private equity, corporate lending, structured finance, project finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance business. Decent growth and great management. Only a few million people have got into insurance product and the numbers are expected to grow steadily in the coming years .
TVS motors - this stock can give huge returns ,also TVS Motor Company is developing electric two-wheeler models, with an electric scooter to be the first all-electric product from India's third largest two-wheeler manufacturer.
ITC’s diversified business includes five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.
ITC reported a Q2 2018 sales of Rs 16,391 crore ,year-on-year (YoY) growth of 3.9 percent. At net profit level, company reported 5.6 percent YoY growth.
Cigarette business was impacted as the company reported lower volumes on account of increase in tax incidence in the GST regime. I believe in Q3 cigarette volumes will again pick up.
ITC’s core FMCG business posted a sales growth of 10 percent .
The diversified conglomerate ITC Ltd. is now gearing up to launch an array of packaged milk-based beverages and frozen dessert items at its new plant in Punjab.
The expansion into dairy products is part of ITC’s move to hit the Rs 65,000-crore mark on non-cigarette packaged-food business by 2030. This will help the company achieve its Rs 1 lakh crore in revenue target.
If you are a longer term investor, 2–3 year period, this is a good time to buy into ITC.
Reliance Industries- Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is the most profitable company in India,the largest publicly traded company in India by market capitalization . Sky is the limit for this company. The company is growing everyday. This company has never failed its shareholders. Great dividend yield and even a greater balance sheet.
NBCC - The company has a Huge order book. Sales Turnover is rising year on year.The company has great growth potential.The schemes announced by the government like Sagarmala, Namami Gange, border roads, river interlinking, high speed corridor, eastern peripheral expressway, nuclear programmes will give terrific momentum to infrastructure development. In December got three orders. One is border fencing and road work along Indo-Bangla border in Mizoram and Meghalaya area of Rs 215 crore. Second, there are two government orders of Rs 50 crore each in Chennai and Mangalore. Though the company did not perform as expected in Q2 but the coming quarters might prove to be a turnaround story with the strong order inflows.
JSW ENERGY- JSW Energy Ltd consolidated net profit rose 37% to Rs297 crore in the September quarter from Rs217 crore a year ago.
Total income from operations rose 6% to Rs2,220 crore against Rs2,099 crore in the corresponding quarter of the previous year.The company has also reduced its debt and plans to reduce it further.
The company is working towards developing capability in the renewable energy space and plans to set up 7MW solar power units consisting of 6MW capacity for JSW Cement under long term power purchase agreement and 1MW capacity for JSW Energy’s captive consumption.
The company signed a memorandum of understanding with the Gujarat government for setting up facilities for manufacturing electric cars and storage batteries. This stock seems to be a good long term bet and re-rating is expected in this counter.
Maruti Suzuki - With a great lineup of cars expected to be launched in 2018 this company never fails to disappoint its customers. Maruti Suzuki India continues to be on a record roll after posting yet another month of impressive sales. Maruti is here to stay for a long time.
This post is for educational purposes. Please do your own research before investing .
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Here are some recommendations, Do your homework before investing.
  • Radico Khaitain Is Jackpot In Making. Buy in the range of 100 To 120 .Target 500.A veterans wife recently bought stake in it. Veteran is know for his multibaggers picking.
  • As mentioned earlier spicejet buy at 100.Stock Jumped to 109.Stock may soon kiss 150 levels.
  • ⚓ Edelweiss a strong Bet on all declines. Stock may soon become a 10 Bagger.
  • ❤ Investors, HNIS, Fiis, Fiis, Retailers In love with Reliance industries. A must buy on every decline. Jio magic may push it to 1500 Levels.
  • Hotel leela Being picked by some smart people. Stock may race to 40 Levels.
  • Hcc is being Accumalted by Some HNIS. Stock may give returns of 20 to 30 Percent.
  • Sail should be Bought from 50 To 60 Levels. Punters indicate company may soon Turn around. Levels of 100 Possible In a year.
  • Epc India a sure bet. Must have in a portfolios.
  • Bad times Not ending For IT companies. Stay away.
  • Shipping stocks like Mercator lines, sci, GE shipping may double from here. Baltic index is on fire.
  • Some operators feel Bull run is over in Auto anicallry stocks like Mahindra cie automotive, Rane Madras, bharat Forge, pricol, Jamna Auto etc. All this auto ancillary stocks may correct by 50 Percent. Stay away or exit from auto ancillary stocks. Valuations are Very expensive.
  • ⚰ Pharma stocks a coffin for investors. Stay away from IT And Pharma as of Now.
  • Marksans pharma may prove to be a Sweet pill.buy For 50 Percent gains.
  • Fiis Rapidly selling in Indian stock markets. Their view is turning very bearish. 9300 Looks Top for this bull run. Swift and cruel crash may be on cards. Be ultra cautious on long positions.
  • Psu Banks have witnessed selling. Stay away from Psu Banks.
  • Balaji telefilms is a right pick for investors. Stock may double in 2 years time.
  • Mahindra cie Automotives is trading at expensive valuations. 3 to 4 Times to book value. Valuations not Justified. No improvement is seen in Earnings in last 3 years. Same may continue in future. Exit is the clear Decision. Brexit effect also in stock as its 60 to 70 percent revenues comes from Europe.
  • Ucal fuel a good bet for investors. Buy on every dip.
  • Hdfc bank shining as bright as Sun. Stock may rally to 1600 levels. Strong management with strong fundamentals. Great CAGR growth.
  • Clariant chemicals Joker In the mid cap pick. Can be a Multibagger. Great Mnc. No doubt. No worries.
  • Realty sector turning around. Hdil, oberoi realty, Db realty, sobha developers are great picks.
  • ⚛ Future market network limited a good sizzling buy.
  • Dcb bank is being picked by investors with a 5 Year view. Slow and safe bet.
  • * Fortis healthcare is Technically breaking out. Tgt 235 .*
  • ♠ S. Chand Ipo a Must subscribe.
  • Mc dowell a good Buy at 1600 levels. Nothing to worry even buying at 1700 levels. People love drinking
  • Equitas holding a cherry pick. Buy n hold small quantity.
  • Vikas ectoex a rising star. Ride your luck on it. Target 50.
  • Good Times coming for Godfrey Philips. A investor with a 3 year view should buy.
  • Vadlial ice creams. Solid product. Great taste. Great quality. Definitely double from here is the view.
  • Sandesh a strong buy at 1000 levels.
  • Bombay dying racing ahead. A trading pick For a year.
  • Vardhman textile at 1300 .Company posting great earnings. 1600 Possible Target.
  • Ashok Leyland a bear play. Tgt 60 .
  • Karnataka bank a golden key stock but only on declines. Target 200.
  • Pioneer embroideries a pick for long term horses.
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Try to find secular, safe and steady compounders, rather than obscure smallcaps you think can double or more in a short span. Just some bragging I'd like before: I had picked Page-Jockey and Eicher-RoyalEnfield in 2013–14 and got tenbaggers out of them. :-) Ofcourse, the ensuing bull markets after BJP's win aided me.
Jockey : Indian youth becoming brand conscious and flashing Jockey underwear in low-waisted jeans. Silly reason to pick I agree, but Peter Lynch would have done the same! Thank you Mr. Lynch for your amazing books.
Eicher Motors: Same as above, Bullet bikes getting cult status among college students. Sad that I could't buy more shares, I too was a cash-strapped college kid back then.
  1. I like Colgate India at this point of time: at around 1050 rupees. For fear of Patanjali and slightly decreasing market share, the stock has not moved since 2015! Colgate has the best distribution network of any FMCG company.
Attached is the FA turnover ratio trend for Colgate for the past 19 years.
As you can see the FA turnover has been dropping since 2011-2012 to about 3.44 as on 2017. The reason behind this is the substantial investments made in the net block over this period. Net Block has increased by 5x since 2011. However sales has increased by 2x. The average over this 19 year period is at ~7 peaking out at 11. Currently the FA turnover at 3.44. The thesis is that the FA turnover will revert back to its average during which operating leverage dynamics will play out. If this happens then the PE at which Colgate is available looks optically high and could present an interesting opportunity.
Using average historical operating ratios - the EPS is expected to be about Rs 50. I have assumed a Net Profit Margin of 15% ( which is the average of the last 10 years ). Based on this the PE multiple on a normalized basis comes to ~ 23. The 2017 EPS was 21 - so clearly i expect an increase in earnings power of about 18-20% over the next 5 years ( or 10% over the next 10 years ). Do you not use Colgate? Anyone switched to Patanjali?
I'd like ITC if it were a pure play Cigarette company. It has gone into too many unrelated business and many of them are not market leaders. The stock has a conglomerate discount to it. Anyone here preferes Yippee! to Maggi???
2. Another is PNB Housing Finance: Could grow at 25–30% for next 3–4 years, I mean the earnings :-) And the stock has corrected a lot to the point that it has come back to the price it was in March 2017. Currently available at a P/B of 3.2, with great Management, robust asset quality of 0.4% GNPA(though it will rise as loan book seasons), and adequate scope for ROE improvement.
3. Ujjivan Small Finance Bank: SFBs Expected to snatch market share from PSU Banks, coupled with huge opportunity size in MSME and Housing. SFBs have high loan yields due to microfinance, and Ujjivan’s GNPA was under 0.3% until demonetisation, indicating the robustness of business model of Joint lending group. Try to read on Samit Ghosh's career and track record. He understands microfinance very well, never entered AP and avoided some regions of Maharashtra and Karnataka, well before the crisis unfolded there.
People might consider Equitas too. I chose Ujjivan for its geographical diversification, beautiful iconic logo, website look & feel and the ambience of their branches appealed to me more. Silly reasons, you might think!
4. Piramal Enterprises: One of the bluest of the blue chips, has a history of growing book value at 29% CAGR for the past 3 decades. Its a Pharma + Finance company with both groups contributing equally now. Plus with Ajay Piramal at the helm, I don’t worry even having this stock with a high allocation (above 30% in my portfolio). Other OTC pharma companies (GSK, Merck, Sanofi etc) trade at 5-10 times book. PEL’s Finance could also command a 3.5-4x PB considering its growth potential and high ROEs. I won’t give it a holding company discount because I like both their Finance & Pharma businesses, and, demerger toh hona hi hai. A company with promising businesses, very strong governance all the more so important in India (the 50k crore Vakrangee comes to mind), a mind-boggling track record of superior performance, available at 3 times book.
5. Meghmani Organics: This company seems to have many ingredients of a multibagger in the making, which indeed it has become. Consistently improving return ratios, solid execution capabilities, high cash flows and falling debt levels. Could become a agro-chemical giant within some years.
6. Reliance Capital: saved my favorite (undervaluation play) for the last. This is a holding company with interests in insurance (life and general), asset management, consumer loans, private equity and brokerage and almost all these are performing very well . Consistently, Reliance Capital is divesting stakes and utilising funds to clean the B/S. I believe most of the pain has been taken while the current equity book is in profit. The stock trades at a significant discount to book value, may be due to its checkered past - ADAG group. 2 big overhangs behind it. First is RCom issue. 2nd is 2G trial. It’s at a significant discount to book value of about 640. Has got good earnings and pays good dividend. Market cap is about 12000 cr. One can do a SOTP of all their businesses.
This company, may definitely not suit many, and so be it. In fact, management deserves the skepticism, due to their past. But, I believe markets are all about the future.
Of course I have the above mentioned stocks in my portfolio!
Readers please give contradicting views on these theses.
Oh, please don't consider these as recommendations. I ain't some SEBI registered advisor.
Source: www.quora.com
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