In conversation with Anil Singhvi, Managing Editor at Zee Business, Market Expert Vikas Sethi picked three stocks namely Hindustan Aeronautics Ltd (HAL) for long term, Kolte-Patil Developers Ltd for positional and Intellect Design Arena Ltd for short term investment for good returns.

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Long Term Pick- Hindustan Aeronautics Ltd (HAL)

Vikas Sethi picked Hindustan Aeronautics for long term investment and said that it is a company with solid fundamentals and is a company from aerospace and defence space. He said that it builds fighter jets, helicopter, jet engines etc. and the government is also focusing on Make in India and defence sector.

 

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The market expert informed that around 3-4 month ago HAL had bagged an order worth Rs 48,000 crore for 83 fighter jets.

Speaking on fundamentals of the company he said operating profit margin of the company is 20 percent, return on equity is 21 percent. It is a zero debt company and June quarter result is also good with a PAT of 197 crore. He gave a target of Rs 1450 for a period of 9 to 12 months.

 

Positional Pick- Kolte-Patil Developers Ltd

Vikas Sethi picked Kolte-Patil for midterm or positional investment. He said that the company is from real estate space and is Pune based but also have projects in Bengaluru and Mumbai.

Fundamentally the company is very strong with return on capital of around 19 percent, debt is also manageable as it is at a level of 0.56. Talking on quarterly result he said the company has reported a PAT of 31 crore in this June quarter against a loss of 27 crore in the previous year. He gave a target of Rs 260 and stoploss of Rs 200.

Short Term Pick- Intellect Design Arena Ltd

Intellect Design Arena Ltd is the short term pick of the market expert. The company works in the segment of product and platform and provides financial technologies for banks and insurance companies.

The company has solid fundamentals and has reported a PAT of 78 crores in June quarter, Vikas Sethi said.

He informed that the operating profit margin of the company is around 19 percent, return on equity is around 18.8 percent and is a zero debt company. He gave a target of Rs 640 and stoploss of Rs 590.