Top Stocks To Buy: Ahead of the weekend break and the markets heading for a breather, Market Analyst Vikas Sethi in conversation with Zee Business Managing Editor Anil Singhvi, recommended a couple of shares with a potential to generate bumper returns for investors. These stocks to buy are Triveni Engineering and HDFC. The rationale for why investors should buy these stocks was provided by Sethi.
Stocks to Buy: Triveni Engineering
Sethi recommended a stock from the cash market. This company is Triveni Engineering and it has business interests in sectors including sugar, power, distillery, water treatment and defence. It manufactures pumps and turbines which is supplied to Indian Navy and Indian Costal Guards. The fundamentals of this company are quite strong. The return ratios are good and this company has been reducing its debt, Sethi said.
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The promoter share is around 68 per cent while domestic and foreign institutional investors have a 12 per cent stake in the company.
This stock is available at attractive valuations and trades at a PE multiple of five, he said. There is a board meeting on Monday to make an announcement on buyback. The buyback price will likely be at a very attractive price. The stock is currently trading around Rs 69.
Market regulator SEBI has also allowed Triveni a 20 per cent circuit limit from 5 per cent from today. The stock could see levels up to Rs 75-80 by Monday.
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Top Stocks To Buy: HDFC
Another stock picked by him is from F&O segment. While recommending HDFC, he said that the stock is excellent. It has recently completed its QIP (Qualified Institutional Placement) – a fund raising tool for the listed companies. There will be a board meeting on Monday where the pricing will be decided, he said. He said that he was bullish on this stock. He said that that he expects the pricing to be very good and the QIP has received a good demand. The HDFC futures are currently trading around Rs 1785. He puts the target price at Rs 1830 by Monday while the stop loss at Rs 1770.