4 Debt Free Stocks With 30% Upside Potential in 2020


3 min read
4 Debt Free Stocks With 30% Upside Potential in 2020

Image source: Background vector created by macrovector - www.freepik.com

If we’ve learned anything from the pandemic, it is that the Stock Market is not equal to the economy and that returns have no correlation with GDP growth. India crossed 10L mark in COVID cases and NIFTY50 rallied whopping 44% from its March 2020 low (7610 levels). What can be the reason behind it?

1) Oxford University’s team ‘absolutely on track’, coronavirus vaccine likely to be available by September.

2) Investors are betting on strong earnings and cheaper valuations.

Let’s find out some stocks which still didn’t participate in the rally but have the potential to deliver substantial returns in 2020.

1) ACC Ltd (Current Price: 1314 Rs. | Target Price: 1650 Rs.)

Brief about ACC: ACC Limited is engaged in the manufacturing of cement and ready mixed concrete. The Company’s segments include Cement and Ready Mix Concrete. The Company has approximately 20 cement factories, more than 50 ready mixed concrete plants, a distribution network of over 9,000 dealers, and a range of sales offices.

Fundamentals: Strong

Debt to Equity: 0.00 Cr. | ROCE: 19.13 % | Free cash flow 5years: 5,709 Cr. | Interest Coverage Ratio: 27.38 | Pledged percentage: 0.00 % | Promoter holding: 54.53 % | Inventory turnover ratio: 4.15 | Company has been maintaining a healthy dividend payout of 29.76%

Technical Analysis: 15 out of 28 major indicators show that this stock is Bullish on charts.

2) Pidilite Industries Ltd (Current Price: 1394 Rs. | Target Price: 1700 Rs.)

Brief about Pidilite Industries Ltd: Pidilite Industries Limited is a holding company. The Company is engaged in the manufacture of adhesives and glues, including rubber based glues and adhesives. Its segments include Consumer & Bazaar Products, Industrial Products and Others. Its subsidiaries include Bhimad Commericial Company Pvt Ltd and Percept Waterproofing Services Ltd, among others.

Fundamentals: Strong

Debt to equity: 0.06 | ROCE: 34.86 % | Free cash flow 5years: 2,671 Cr. | Interest Coverage Ratio: 46.39 | Pledged percentage: 0.00 % | Promoter holding: 69.92 % | Inventory turnover ratio: 4.20 | Company has been maintaining a healthy dividend payout of 31.89%

Technical Analysis: 13 out of 28 major indicators show that this stock is Bullish on charts.

3) Tech Mahindra Ltd (Current Price: 600 Rs. | Target Price: 720 Rs.)

Brief about Tech Mahindra Ltd: Tech Mahindra Limited is engaged in the business of computer programming, consultancy and related services. The Company’s segments include Information Technology (IT) Services and Business Processing Outsourcing (BPO). The enterprise solutions business provides IT services, including IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services.

Fundamentals: Strong

Debt to equity: 0.13 | ROCE: 34.86 % | Free cash flow 5years: 15,522 Cr.| Interest Coverage Ratio: 27.31 | Pledged percentage: 0.00 % | Promoter holding: 35.85 % |Inventory turnover ratio: 3.70 |Company has been maintaining a healthy dividend payout of 31.29%

Technical Analysis: 15 out of 28 major indicators show that this stock is Bullish on charts.

4) Finolex Cables Ltd (Current Price: 279 Rs. | Target Price: 400 Rs.)

Brief about Finolex Cables: Finolex Cables Ltd. engages in the manufacture and sale of electrical and telecommunication cables. It operates through the following segments: Electrical Cables, Communication Cables, Copper Rods, and Others. Its products include wires and cables, led lightings, fans, miniature circuit breakers, and water heaters. The company was founded by Kishan Parsram Chhabria and Prakash Prahlad Chhabria in 1958 and is headquartered in Pune, India.

Fundamentals: Strong

Debt to equity: 0 | ROCE: 23.16 % | Free cash flow 5years: 899.67 Cr.| Interest Coverage: 324.44 | Pledged percentage: 0.00 % | Promoter holding: 35.92 % |Inventory turnover ratio: 4.26 |Company has been maintaining a healthy dividend payout of 17.20%

Technical Analysis: 17 out of 28 major indicators show that this stock is Bullish on charts.

Get Stock Advice from SEBI Registered Professionals: here

Open Free Demat account here

For more articles like this, Join Free Market notes telegram channel here

Akshay Seth
Research Analyst (SEBI Regd.)
Linkedin | akshay.equity@gmail.com

Get notified on Facebook and twitter too.

GO TOP

🎉 You've successfully subscribed to Marketnotes - Decoding Financial News!
OK