Make stocks your Valentine! Buy these 11 shares on February 14 to get richer
You must make a note that, when benchmark indexes are corrected, many good stocks also see similar pattern, which makes them cheap to buy and hence it is always advisable to grab the opportunity.
Today, the citizens across the globe are celebrating Valentine’s Day, by surprising their loved ones with gifts, chocolates, clothes, gold, diamond and other stuff. This day, almost every shop sees heavy demand of customers to make purchases. When you talk about buyings, let’s have love for some stocks as well. The current situation market indices, makes it well placed for investors to buy and diversify their portfolio. At around 1209 hours, Sensex was trading at 35,907.66 down by 126.45 points or 0.36%. Whereas, the Nifty 50 was performing at 10,748 below 44.80 points or 0.42%. You must make a note that, when benchmark indexes are corrected, many good stocks also see similar pattern, which makes them cheap to buy and hence it is always advisable to grab the opportunity. Among many quotes, the ‘Oracle of Omaha’ Warren Buffett rightly says that, it is better to buy wonderful company at fair price, rather than a fair company at wonderful price.
On this Valentine’s Day, you can place your bet in a list of 11 stocks, which are seen by experts as money making magnet in nearterm. Let’s know all about these stocks!
According to Sharekhan, here’s a list of stocks which are best bet on Thursday!
1. Oil India - Maintain Buy with revised PT of Rs. 230! At CMP, the stock trades at 5.4x FY2019E EPS and 6.5x FY2020E EPS. The broking firm have increased our FY2019E and FY2020E earnings estimates to factor in higher net oil realisation (as adequate fuel subsidy provision allays concern of subsidy sharing by upstream PSUs), lower operating expenses and lower effective tax rate for FY2019E. We have also introduced our FY2021E EPS of Rs 27.8.
2. PI Industries - Maintain Buy with a revised PT of Rs. 1,050! Expect the company to post a revenue and earnings CAGR of 21.6% and 23.4% over FY2018- FY2021E, respectively. Management reiterated its guidance and sounded confident of achieving revenue growth of 20%+ and EBITDA margin of ~21% over the next 2-3 years.
According to CLSA, here are best stocks for you!
3. Larsen & Toubro - CLSA says, "L&T’s 3QTD OI grew +17%, led by Govt-sponsored capex and some pick-up in private capex. We estimate that L&T needs only -2% to 3% growth in 4Q OI to achieve its 10-12% OI growth guidance in FY19. BUY as we believe L&T is a good proxy to domestic capex and has a credible strategy to improve both growth and RoE."
4. NCC - In CLSA’s view, "We raise our target price from Rs 135 to Rs140 on a25%-40% hike in EPS, even after factoring-in lower mid-cycle multiples and the derating of mid-caps. We believe, apart from AP and Telangana state Capex orders, the government’s affordable housing and highway programs will create several years of growth visibility for builders such as NCC; BUY."
5. Coal India - CLSA states that, after four strong quarters, earnings growth should taper sharply as the large FSA price hike of Jan’18 will be in the base. We cut FY19-21CL EPS by 3-5% on lower volumes. The stock, however, is at a reasonable 9x FY20CL PE with an attractive 9% dividend yield, third highest in CLSA’s AxJ large-cap coverage. We retain BUY with Rs275 TP (earlier Rs310).
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6. Max Financial (MFS) - CLSA explains that, potential promoter stake sale in Max Financial (MFS) to reduce share pledge /group debt can remain an overhang on the stock. Retain BUY with a revised TP of Rs510 (was Rs550).
7. Sun Pharma - Monetisation of the US specialty pipeline will give confidence in its ability to rollout differentiated products and thus execution will be the key for Sun in FY20. Sun provided further clarification on recent governance issues and is working on improving its disclosure from 1QFY20 onwards. Sun’s current valuations are attractive and a stronger-than-expected specialty portfolio ramp-up could drive a rerating. BUY, as per CLSA.
8. Apollo Hospital - Promoters are confident of selling their stake (41%) in Apollo Munich and reduce the pledge by 50-60% over the next six months. Retain BUY with an unchanged target price of Rs1,500.
Analysts at Macquarie also recommended a stock.
9. Yes Bank - Macquarie believes the RBI report reinforces the credibility of the balance sheet. The stock trades at what we believe to be a very compelling valuation of 1.0 FY21E P/BV for its 17% ROE. We do see potential for significant upside in the stock. We are maintaining an OP rating with a target price of Rs270.
On the other hand, analysts at Prabhudas Liladher also pitched for two stocks that are good for buying opportunities.
10. Dhanuka Agritech - Its focus on high growth categories of herbicides (32% of sales) and fungicides (15%) augurs well as rising labour cost and Govt's emphasis on increasing the production of horticulture crops are driving superior demand for these segments. Topline and bottomline are expected to grow at a CAGR of 9.0% and 9.3% between FY18-21E. Maintain Buy with a target price of Rs 624 based on 18x FY21 earnings.
11. Heidelberg Cement - Remain positive on the demand outlook in Central region on the back of strong govt spending on rural and affordable housing/infrastructure sector and better sentiments compared to other regions. Led by strong outlook on Central region, quality operations and attractive valuations, reiterate BUY with TP of Rs190, EV/EBITDA of 9x FY21e.
Hence, on this Valentine’s Day, have an appetite for equities. Let the love of stocks make you rich ahead!