“Bad Times Make for Good Buys”
For those who missed Free Webinar 2, here is the list of top 10 stocks that may do well after the pandemic ends (5 Growth + 5 Value Stocks)
5 Growth Stocks
1. Reliance Industries Limited (1066 Rs.)
Reliance is one of the most profitable companies in India. The largest publicly traded company in India by market capitalization.
Credit rating: [ICRA]A1+ Stable | P/E: 15.26 | Sales Growth (3Yrs): 27.60 % |Pledged percentage: 0.00 % |Promoter holding: 48.87 % |Inventory turnover ratio: 8.82 |Interest Coverage Ratio: 3.80 |Debt to equity: 0.62 |Number of employees: 2,00,000+
If you see the valuation then also RIL is trading below its Intrinsic value (Fair Value)
2. Kotak Mahindra Bank Ltd. (1104 Rs.)
It is the second-largest Indian private sector bank by market capitalization.
Rating Long Term — Bank Loans: AAA/Stable | Net Interest Income: 14,748 Cr (24% CAGR) | Total Advances : 2.43 lakh Cr. (29% CAGR) | CASA Ratio: 52.5% | Net Interest Margin : 4% | Cost to Income Ratio : 47.3% | Loan-to-Deposit Ratio: 109% | Provision Coverage Ratio (PCR): 72% | Net NPA: .75% (2019)| Capital Adequacy Ratio (CAR): 17.89% (2019)
(See detailed Analysi here)
3. Tata Consultancy Services Limited (1677 Rs.)
The most valued Indian company by market capitalization. TCS is also 3rd most-valued IT services brand globally.
ROCE: 47.66 % | ROE: 35.98 % | ROA: 35% |Promoter holding: 72.05 % |Debt to equity: 0.07 |Free cash flow 5years: 106,564 Cr. |Stock P/E: 19.78 |Compounded Sales Growth of the last 10 years: 18.07% |Compounded Profit Growth of the last 10 years: 19.68% |Interest Coverage Ratio: 61.54
4. Bajaj Finance Ltd (2277 Rs.)
Stock P/E: 26.17 | Sales Growth (3Yrs): 33.55 % |Pledged percentage: 0.00 % |Company has good consistent profit growth of 40.14% over 5 years|
Lower Repo rate advantage |Compounded Profit Growth of the last 10 years: 60%|Compounded Sales Growth of the last 10 years: 40%.
5. Hindustan Unilever Ltd (2164 Rs.)
Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India. GSK merger will also provide a strong platform to grow the food portfolio.
ROCE: 116 % | ROE: 81.95 % | Free cash flow 5years: 21,196 Cr. | Interest Coverage Ratio: 102.75 | Debt to equity: 0.01 |Stock P/E: 67.86 | Industry PE: 63.09 | Inventory turnover ratio: 15.46 | Pledged percentage: 0.00 % |Promoter holding: 67.18 %
5 Value Stocks
1. Power Grid Corporation of India Ltd (158 Rs.)
Dividend Yield: 5.39 %
Free cash flow 5years: 2,858 Cr.
Promoter holding: 54.96 %
Stock PE: 7.48
2. Oil & Natural Gas Corporation Limited (68.30)
Dividend Yield: 10.65 %
Free cash flow 5years: 138,541 Cr.
Promoter holding: 62.78%
Stock PE: 3.74
3. JK Paper Ltd. (76.85 Rs.)
Dividend Yield: 4.55 %
Free cash flow 5years: 1,772 Cr.
Promoter holding: 48.40 %
Stock PE: 2.77
4. L&T Finance Holdings Ltd (49.75 Rs.)
Dividend Yield: 1.97 %
Stock is trading at 0.72 times its book value
Promoter holding: 64%
5. Vedanta Ltd. (62.75 Rs.)
Free cash flow 5years: 59,851 Cr.
Pledged percentage: 0.00 %
Promoter holding: 50.14 %
Stock P/E: 2.65
Dividend Yield: 30.11 %
Growth Stocks: In finance, a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry. Growth stocks generally trade at a premium.
Value Stocks: Value stocks are stocks that currently trade below the intrinsic value of the company. If the market price is below the value of the company as determined by the investor, the stock is considered as undervalued, or a value stock. Value stocks generally trade at a discount.
Note: Analysis of financial markets is either Fundamental or Technical. Fundamental analysis focuses on financial statements in assessing the condition of a company and in predicting its future performance. Technical analysis focuses on a stock’s historical price pattern, as portrayed on charts, to predict future price movements. You are suggested to perform both the research before investing.
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Here are the top 6 reads that may help you choose the right stocks
- 10 Useful tools to Analyze Banking Stocks
- When is the ‘Best Time’ to BUY a Stock?
- Can the stock market be predicted?
- Decoding Technical Analysis for Traders & Investors.
- How do professional stock market analysts analyse stocks?
- Contrarian Investing: The Strategy to Adopt during Market Turmoil