phne no


11:28-30 - "Come to me, all of you who are weary and over-burdened, and I will give you rest! Put on my yoke and learn from me. For I am gentle and humble in heart and you will find rest for your souls. For my yoke is easy and my burden is light."

28 Jun 2018

SHARE MARKET--What are some of the most undervalued stocks to buy now (2018-June) in Indian equity markets?

Since small-caps and mid-caps were at a free-fall for most part of 2018, there are quite a few stocks that have corrected way too much. I don’t recommend investing in any of these stocks but you can definitely take a look at the following before the reversal gains momentum:
1.       Motherson Sumi - CMP Rs. 310.65
Several players in this segment of auto ancillaries but this one is easily the King, just check their website, you’ll see what I’m saying.

2.      NBCC - CMP Rs. 87
Massive order book nearing 1 Lakh Crore, no debt, 2018 is all about execution, new Ministries added to portfolio. Stock is very cheap right now, just get it if you think its fits your style of investing.

3.      Ashok Leyland - CMP Rs. 144.95
Monopoly in defense with over two dozen contracts part of order book, these will start paying out in 2019, more orders being added in current year. Company doing great in LCV segment which it entered not too long ago, May 2018 auto sales up by astounding 51%, revolutionary partnership with Sun Mobility for future of sustainable public transport, I can go on, this is a stock that has only rallied up, seldom does it correct, GET IT NOW if you feel it’s your kind of stock.

4.      NOCIL - CMP Rs. 177.65
It has corrected way too much, was at Rs. 150 something about two days back I guess, will shoot back to 200 levels in a few weeks, company has absolute monopoly over what it does, this stock is owned and favored by several market Kingpins, this one will definitely go BIG in near future.

5.      Meghmani Organics - CMP Rs. 95
Company does great business, fundamentals are really strong, stock has corrected a bit, best time for entry.

6.      NCC - CMP Rs. 110.40
Another stock that can create wealth for you in both short and long term, likely to see 150 levels by year end or even before that.

7.      Zee Media - CMP Rs. 31.75
Media stocks must not be ignored for 2018–19 since a lot of crucial state elections as well as the all important Lok Sabha 2019 is almost here. What this means is increased advertising revenue for the media industry and other sources of income. Zee Media is Porinju Veliyath’s darling stock mind you and he recommends staying invested in it for the long term. Only great things happen in the long term. So at these levels, you should really consider accumulating this one since Zee Group will make a lot of money in coming months and years.

8.     DB Corp - CMP Rs. 259
As I said, media stocks cannot and should not be ignored. DB Corp has corrected way too much and company is considering buyback already. This stock has settled in the 350–400 levels for a really long time before crashing to these levels. This one is heavily undervalued. Newspaper and radio ads worth thousands of crores will pump more life into DB Corp in coming months. Just check its circulation and you’ll know how important this scrip is for coming election period. Best time to buy this one!

9.      SpiceJet - CMP Rs. 111.70
If you have the courage and patience, then this stock is available at really cheap levels right now. The company is one of the rare turnaround stories in aviation sector and once you look at its balance sheet for past few quarters, you’ll get the idea. Add to this the massive expansion plans that are underway and a booming aviation sector in India. If you compare it to IndiGo and JetAirways, you will see how massively undervalued it is right now. You have to be mentally strong to stay invested in this one since it can be a bit volatile so your investment span should be at least a year or two. ATF (aviation fuel) is likely to come under the ambit of GST which will have a really positive effect on airlines. As for SpiceJet, I strongly recommend checking its expansion plans and deciding for yourself.

10.  Rain Industries Ltd. - CMP Rs. 232.70
One of the most impressive growth stories in the Indian stock market, Rain Industries has come crashing down over past few weeks. But there’s nothing wrong with the business model, no policy changes to worry the industry much, and company fundamentals are strong as ever. If you find this one worth your time and money, buying it at these levels is likely to give you really good profits in the short term. I don’t usually share tentative targets but this one should be back to 350–400 levels around Diwali 2018. Value investors have viewed it as a long term wealth creator but its recent fall is a good opportunity for anyone to enter this scrip, that is if you think it ‘floats your boat’.

Hope this helps, there are several others that can be a part of this list, but I find these to be ‘real value picks’ with a few factors in mind. Once again, buy at your own risk, buy when the stocks dip, and if you wish to be a value investor, then BE ONE!
Fear, doubt, et al should not be a part of a value investor’s portfolio. Don’t be in the habit of reviewing your picks every day! Wealth creation usually takes time and there are hardly any shortcuts. Trading can be tempting but investing is always fruitful.
Your money will only work for you if you let it work for you.

No comments:

Post a comment