Stocks to buy with Anil Singhvi: MSTC in Cash and IDFC First Bank in F & O space, Here are Vikas Sethi’s top two picks for good returns

Zee Business Managing Editor Anil Singhvi, in Friday's episode of ‘Sadabahaar Sethi Saab’ show, talked to market analyst Vikas Sethi and asked him to reveal his top picks that can generate good returns for investors who are on the lookout for smart deals. Sethi gave two calls today, one from the cash market and another from F&O space. Sethi said the fall in the current Bull market is giving a strong opportunity for investors to buy good quality stocks.  

Cash Market: MSTC (Metal Scrap Trade Corporation) 

MSTC is a Mini Ratna PSU Company under the administrative control of the Ministry of Steel, Government of India. The Government of India has 64.75% shareholding in the company. MSTC was incorporated to deal in export of ferrous scrap. MSTC is one of the leading PSU entity engaged in providing e-commerce related services across diversified industry segment offering e-auction/e-sale, e-procurement services and development of customized software/solutions. 

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Sources are saying that the scrappage policy may be announced pre-budget or in the budget, MSTC will be huge beneficiary if any announcement will be done related to scrappage policy. Tata Motors and Ashok Leyland will also benefit from these announcements. Fundamentals of MSTC are extremely strong, they announced dividend of Rs 3.3. Q2 FY21 results of MSTC were excellent, operating profit margin was 37%, profit after tax was 33 cr vs 24 cr (yoy), return on equity is 26%. The target on MSTC is Rs 250 in short term with stop loss of Rs 220, incase if scrappage policy is announced.    
Zee Business Managing Editor Anil Singhvi said that scrappage policy announcement will be a game changer for MSTC.  

सदाबहार सेठी सा'ब: विकास सेठी की शॉर्ट टर्म में दमदार मुनाफे के लिए 2 बेहतरीन PICK@AnilSinghvi_ @vikassethi_SF pic.twitter.com/TdyPFLfCSy

— Zee Business (@ZeeBusiness) January 15, 2021

Futures & Options Stock: IDFC First Bank 

Vodafone Idea is trading strongly despite of weak market; IDFC First Bank has sizeable exposure to Idea. In case if any positive news is announced in Vodafone Idea, IDFC First Bank will be the key beneficiary. Any fund infusion in Vodafone idea will that help them to improve the Balance sheet, will surely benefit IDFC First Bank. So, IDFC First Bank Future, should be bought with target of Rs 51 and stop loss of Rs 45.