To ensure investors are able to successfully negotiate the markets even in these tough times, Zee Business experts are providing investment tips on mid-cap stocks with long term, medium term and short term views. In line with this, channel’s Managing Editor Anil Singhvi today, revealed two more stocks that are likely to do well and give bumper returns to the investors. The guest expert today was Vikas Sethi.
Sethi has recommended a stock in the Fast Moving Consumer Goods (FMCG) space with a positional view. Sethi who is a Managing Director (MD) at Sethi Finmart selected Galaxy Surfactants as his top buy. Heaping praise on the stock, the MD said that Galaxy Surfactants manufactures chemical-based surfactants for its marque clients like Unilever, Colgate, Procter and Gamble and Henkel. The company is very good with strong fundamentals, he added.
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The return on equity is 21.5 per cent with negligible debt. Galaxy Surfactants profits have grown at a CAGR of 18 per cent. The valuations of this stock are currently low at around Rs 1473. The stock should be bought at the current levels, he said. The target price of this stock is Rs 1600, he added.
Another top pick for Sethi is from the oil and gas sector. He said GSPL – a company owned by the Government of Gujarat – is a very good buy and should be bought at current levels. The fortunes of this company is tied up with the fertiliser and power sectors. The stock is available at cheap valuations. The current stock price is around Rs 217.
The return on equity is around 35 per cent for the company. The growth for GSPL has been significant over the last five years, he further said. In FY16 the profit was around Rs 418 cr which increased to Rs 2284 cr in FY 20.
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It can reach Rs 250 in near term, Sethi said. He also advised investors to keep the stock with a long term view as it has the potential to give bumper returns.