Stocks To Buy: In today’s edition of popular TV show ‘Sadabahaar Sethi Saab’, market analyst Vikas Sethi today recommended two stocks to investors which he said were available at attractive valuations. In a chat with Zee Business Managing Editor Anil Singhvi, he said that both these stocks have strong fundamentals and in near term will earn high profits for investors. The stocks recommended in this show are usually with a short term view.
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Top Stocks To Buy: Dhampur Sugar
His first recommendation was the stock which has business interest in varied sectors. This stock is Dhampur Sugar. Besides sugar, the company also has presence in power sector and manufactures ethanol and alcohol-based chemicals and fertilisers. This stock is available at attractive valuations and at a PE multiple of 5. This company has given a dividend of Rs 6 which amounts to 4 per cent. The operating profit margins are at 13-14 per cent while the return on equity is at 20 per cent. The Debt-to-Equity ratio stand at 1.19, which he said was not a big amount. The company has registered a growth at around 16-17 per cent over the last three years, he said.
The promoters have a 49 per cent stake in the company with FIIs and DIIs also holding significant stakes. This stock is ready for an upside, Sethi said.
It is currently trading around Rs 155. He puts the stop loss at Rs 150 while the target price at Rs 170.
Top Stocks To Buy: Taj GVK
Another stock recommended by him is in hospitality space. This stock is a hotel company which is currently trading around Rs 155. The name of this company is Taj GVK which is a joint venture company between Indian Hotels Company (a Tata Group company and GVK group. The target price of this stock is Rs 170 while the stop loss is at Rs 150, the technical analyst said.
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This stock has excellent properties in Hyderabad and Chandigarh, he added. Taj GVK has strong fundamentals. The debt-to-equity ratio is almost negligible at 0.35. The promoter holding is around 75 per cent while the DIIs hold 16 per cent in it. This is the right time to buy this stock as the hospitality sector has been badly hit.