Stocks To Buy: Market Analyst Vikas Sethi today said that the markets have been witnessing an excellent momentum and are currently reacting to the news related to the judgement in the Adjusted Gross Revenue (AGR) issue. As for today’s stock picks, Sethi recommended two stocks, which he said will earn bumper returns, in a chat with Zee Business Managing Editor Anil Singhvi.

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Top Stocks To Buy: UCAL Fuel 

His first recommendation was the stock from the cash market. He picked UCAL Fuel. This stock is currently trading around Rs 120. This is an excellent auto ancillary company, Sethi said. This sector is currently seeing a good traction, making this stock a strong bet. While the Original Equipment Manufacturers (OEMs) were doing good, the component makers have also been putting up a good show, Sethi said. The fundamentals of this company are strong with return on Equity at around 33 per cent in FY19. The debt-equity ratio is almost negligible at 0.6. The 3-year CAGR of profits is around 20. The stock is available at attractive valuations and is trading at a PE multiple of 12. 

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The promoter holding is around 70 per cent, he said. This company caters to two-wheeler segment and has an impressive clientele like TVS Motor, Hero MotoCorp, Eicher Motors. He recommends buying in this stock at existing levels.  

He puts the target price in a very short term period between Rs 135 and Rs 140 and the stop loss at Rs 115. 

Top Stocks To Buy: JSW Steel   

Another stock recommended by him is in the Futures and Options space. He picked JSW Steel as a preferred Buy. This stock is currently trading around Rs 276. In the immediate short term he expects this stock to achieve Rs 290. He puts the stop loss at Rs 270. This company has business interests in the steel sector and the technical analyst said that the steel companies including Tata Steel and Steel Authority of India (SAIL) have also been doing well lately. 

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This stock had been recommended as part of Sethi's daily picks under a popular TV show ‘Sadabahaar Sethi Saab’. The technical analyst gives his top trading calls to the Market Guru in this show. The stocks are usually recommended with a short term view.