In yet another edition of popular TV show ‘Sadabahaar Sethi Saab’, Market Analyst Vikas Sethi today recommended two stocks and both from the cash markets. Sethi’s recommendations to Zee Business managing Editor Anil Singhvi was from the short term perspective. Know which stocks are these and why this analyst picked them:-
Top Stocks To Buy: Andhra Sugars
Analyst Vikas Sethi recommended Andhra Sugars today for bumper returns. This stock has previously been recommended by him in the Special Mid Cap Stocks programme with a long term perspective. The targets have already been achieved and this stock has seen some correction creating more opportunities for the buyers. This stock is currently trading around Rs 299.
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Apart from sugar, the company also has business interests in fertilisers, chemicals and pharma. In terms of valuation the stock is available at a PE multiple of 4. The operating profit margin is 17 per cent and the return on equity is also 17 per cent. It is also a zero debt company with Domestic Institutional Investors having an 11 per cent stake. He puts the stop loss at Rs 285 and the target price at Rs 320.
Top Stocks To Buy: Bajaj Consumer Products
Another stock picked by him was Bajaj Consumer Products which he said was an excellent company in the FMCG brands with some marquee products including Bajaj Almond Drops, Bajaj Bramhi Amla hair oil, No Marks. This stock is reasonably priced and is available at a PE multiple of 15. This stock is currently trading around Rs 181. The June quarter results have been strong with operating profits around 27 per cent and return on equity around 28 per cent. This is a zero debt company.
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The FIIs and DIIs together hold around 49 per cent equity in the company. He puts the target price at Rs 195 and stop loss at Rs 175.