Categories Open What stock to buy now? Post author By Raoji Post date January 19, 2016 40 Comments on What stock to buy now? Throwing open a discussion thread to readers. Tell which stock to buy now with a one liner description why Share this:FacebookLinkedInTwitterWhatsAppEmail ← Linkfest: January 19,2016 → Linkfest: January 20,2016 40 replies on “What stock to buy now?” Reliance Industries-Record profits,Jio launch,under owned Buy IDFC Bank (and short IDFC if possible) I dont have any Blue Chips to mention here, nor any banks or tech companies. I would rather bet on these Mid/Small caps: Suven Life Sciences – established business, high research capabilities, unique CRAMS business; leading neurological product going through clinical trials and awaiting USFDA approval. If approved, SLS can go 200% from here in 1 year. Force Motors – a leader in its segment, demand for this product will only improve with increased domestic (plus rural) consumption in the next 12 months. Welspun India/Syntex – leader in exports of its respective products, esp to US. When global economies bottom out, these scrips can zoom. Tata Elxsi – leader in its entertainment software segment. Good results expected (20th Jan). Animation seems to be the in-thing in movies, plus ever increasing needs of kids entertainment. Zen tech – Defense story , Titagarh – Railways , Genus – Power metering , NCL – Cement play in Andhra/Telangana , Sintex – Domestic/Textile NALCO: 5% dividend yield and cash rich company; trading at a huge discount to peers like Hindalco. This is a contrarian buy Vindhya Telelinks – undervalued, good prospects. For punting, would buy JSPL, mkt cap seems too low for size of the company. LLoyd elect – depite good improvement in sales and profit its trading at just 6pe, while its peers are trading 30 to 60x . Madhucon – One of the few the infra companies which did not go for CDR despite having huge debt. Its topline and cash flows are also improving and is set to post profit of around 200cr and current market cap is just 400cr. Networth based on marketvalue of assets is around 500, but its trading at 60 levels. Zicom – unique play in security business but trading at 4pe, on its day it can command 30 to 50x easily. Buy L&T – Proxy to India’s infra play. (Expected Return 1 to 2 year : 17%) Buy Camlin Fine Science – Increasing demand of Ready to Eat Food and the company is market leader in Hydroquinine. (Expected Return 1 to 2 year : 22%) Buy The Byke Hospitality – Few of the Asset Light model in Hotel Industry. Company increasing the room keys from FY15 c.3900 to c.6000 in FY17. (Expected Return 1 to 2 year : 30%) I think SBI among the PSU will be good bet, most of the NPA issue at this price seems already factored in. It can bounce back for 30-40% gain. Himachal Futuristic communications ltd. Good working & huge potential for forward moving. Good work orders with a 4G Company. West Coast Paper – Uses WDV Depreciation, in 3 years depreciation will fall, profits will rise Jubilant Foodworks – Can easily beat bank FD returns. Only for a passive investor. Force Motors Ultramarine Jet Airways Sagar cement – in a sweet pot will benefit from construction activities of the new states AP & telegana &smart city project Vedanta – contrarian bet, only reason to buy is price, getting Rio tinto of India at fire sale price but have to go throw pain for 2 or 3 years until next economy activity picks up Wockhardt – market has over reacted to Shendra plant observations by USFDA. HDFC Bank – best of breed in an industry that is still doing “extend and pretend”. Call it both defensive and aggressive. SBI most of the NPA issue at this price seems already factored in. It can bounce back for 100% gain. L&T – Infra PLay Any Large cap cement Company, the way Highways are getting built & construction will pick up in housing Century Enka -The likely FY 16 n Fy 17 Balance sheet makes it very attractive with negligible downside . Also Have a look at Manugraph and tata coffee . Asian Paints ( or any paint) – Lowest oil is RM and great performance so far. SBI – More than 50% fall, minimal downside, but potential for a 60% move from here Indian Terrain Fashions Ltd. I feel SKM egg products is good one. One worry is that it can be a falling knife as it is correcting. But I feel it is not 🙂 NOIDA TOLL BRIDGE – 13% DIVIDEND YIELD, NMDC -9% DIVIDEND YIELD, CUPID ,STOVE,NESCO,OBERAI REALTY,INOX WIND, VINDHYA TELE,DENORA BUY AT LEAST FOR ONE YEAR INVESTMENT. ITC maybe. Capital preservation with liquidity and returns better than bond funds. Granules India – Have corrected to a great extent. Excellent business, has achieved 28% CAGR in revenues & 38% CAGR in earnings over past 10 years and expected to continue momemtum Astra Microwave – Defense Story Kitex Garments – Limited Downside, Niche textile player Other could include : Force Motors, Ceat, Repco/Gruh, Asian Paints, Pidilite Accelya Kale La Opala Apcotex Caplin Lab IDFC , IDFC Bank in that order. A bank that has provisioned for 60% loss in stressed assets already. And capitalised at 20% plus, trading at 1.1 times book. Can grow the loan book by picking and choosing customers as others struggle. The holding company is at 50% discount with guaranteed shareholder returns from year 3, thanks to RBI mandated dilution. Coromandel – Complex fertiliser set to come back with farmers. RIL – Capital allocation now to throw cashflow Oberoi realty: Good quarterly result. Negligible debt as compared to peers. Borivali project launch has been successful so far. Shorter term: Force Motor- chart suggests a bounce after every decline, NMDC – excellent cash rich, lesser chances for further diminishing in case market slides ahead. Mid Term: PNB/BOB OR SBI – Bounce from bottoms/ near bottoms. Longer term: MCX- cleaned up now, excellent potential, the only player in this industry. Steel sector: Tata – Steel cycle to revive sometime. Sugar: Bajaj hind: Cycle to turn around… RELAXO FOOT WEAR RUBBER PRICES ARE DOWN GUJ PIPAV PORT SWELECT ENERGY SOLAR POWER BOOST BY GOI Tata Communications Selan oil Technofab Accelya Kale: Niche player in sticky airline software business. Ambika Cotton: Undervalued and has good cashflows. Top notch management. Shriram Transport: With P/B <2, its a good large cap to buy having huge competitive advantage and growth ahead. TVS Srichakra at 2380 – with production capacity of 2.3 Million two/three wheeler tyres a year, its market leader in 2/3 wheeler business, have grown at 25+% CAGR in past five years Prabhat Dairy at 110 – purely demographic consumption story SK Kelkar @245- leading purfume and scent manufacturer, a true sustained business with low volatility PFRL @212 – Largest branded retail player in India with good management Hindustan Petroleum Corporation (HPCL) with a dividend yield of more than 3% (last year Rs. 25/- dividend per share) ; slump in input crude prices, improved cash flows because of heavily reduced subsidy burden; having value with P/E less than 8. Price has bounced from 730/ – to 750/ – levels multiple times; hence strong support KLRF reason as per the link http://hemanghigandhi.blogspot.in/2016/01/klrf-ltd-bse-507598-fv-rs10-rs-55.html LAKSHMI MACHINERY WORKS- DEBT FREE COMPANY & CURRENTLY THIRD GLOBALLY IN ITS SEGMENT. CAN EXPECT IT TO TAKE NO1 SLOT IN THE FUTURE. CAN BE THE NEXT EICHER Shailey Engineering Plastics: This micro cap have potential to become a large cap. They re into the business of high precision plastic molding and manufacturing. Exceptional client list. One among the three preferred vendors of IKEA worldwide. With IKEA coming into India in a big way this company can do wonders. They recently replaced an full metal rod with an more efficient plastic without having any issues and M/s Honeywell is successfully using the same for BMW turbo chargers. This is only the start…picture abhi baki hai 🙂 SKM Egg Products: Kinshuk already mentioned this..and I feel the same. This company exports Egg Powders to other countries like Japan, Middle East, Russia and other European/ African countries. Niche business. Technological tie up with world’s largest and best Belgian firm. Huge untapped market. 30-35% expected YOY growth and good margins. A great business to be in. Kitex- Another good textile export company. Having huge market share in children ware. Great client list. Good margins. A nice business to be in for 25%+ compounding. Granules- A great B2B pharmacy company. Decent nos. A very good track record. Recent huge fall is giving great opportunity to add this one. Some Trading Punts- Welspun Syntex/ Sintex/ Amaraja Battery Infra – Cement demand to grow in South India (Panyam & NCL Cement) Auto – Tyre (Apollo Tyres) / Component makers – Banco Products KEI – Strong growth in power transmission & new Ultra high cap. transmission will drive strong growth over next 2-3 yrs. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.