Stocks To Buy: Market Analyst Vikas Sethi today recommended two stocks from the same sector with a short-term view in the popular TV show ‘Sadabahaar Sethi Saab’. In chat with Zee Business Managing Editor Anil Singhvi, Sethi recommended two stocks from infrastructure space for investors. Know here why they will earn high returns!
Top Stocks To Buy: PNC Infratech
His first recommendation was PNC Infratech. This stock was trading around Rs 166 at the time of the recommendation. He puts the stop loss at Rs 160 while the target price is at Rs 180. In a month’s time it can attain Rs 200. This is an excellent company in the infrastructure space, Sethi said and is available at a PE multiple of 7. The profit margin is around 20 per cent. The return on equity is 21 per cent. The profits have grown at a CAGR of 35 per cent over the last 3 years. The debt to equity ratio is 1.28, which is good for an infrastructure company. This company has a strong order book with strong execution capability. The Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have a combined holding of 42 per cent.
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The government’s focus on infrastructure development augurs well for this company, he said.
It ended today around Rs 173, gaining by over 12 per cent from the previous close.
Top Stocks To Buy: PSP Projects
Another stock recommended by him was PSP Projects. This stock is also from the infrastructure space. The stock is currently trading around Rs 460. He puts the immediate target price at Rs 485 while the stop loss is Rs 450. This Ahmedabad-based company is excellent and has operations in private and public sectors. It has made several iconic buildings in GIFT city.
It has strong fundamentals with return on equity at 28 per cent and return on capital employed at 41 per cent. Despite being an infrastructure company, the debt to equity ratio is 0.17 per cent.
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Its profits have grown at a CAGR of 42 per cent over the last three years. The promoter holding is around 73 per cent while the DIIs hold 14 per cent. It can even go up to Rs 600.