Close your eyes, Buy these two safest stocks and let your money grow with time.
NBCC Ltd. (Current Market Price: 65.45 Rs., Target Price : 100 Rs, Tenure : 6 Months) About The company:
NBCC (India) Limited, Government of India owned company which provides civil engineering construction services. The Company operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering, Procurement and Construction (EPC). The PMC segment offers management and consultancy services for civil construction projects, including residential and commercial complexes, re-development of government colonies, education and medical institutions, infrastructure project roads, water supply systems, storm water systems and water storage solutions.
Reasons: Top 7 reasons to buy NBCC Ltd.
This construction giant is trading 35 times of its FY17 earnings with EPS of 1.85 Rs at CMP of 65.45 Rs. Consistent profit making. Revenue: 7,095 crores INR (2017–2018, US$1.1 billion).
2. This company is cash rich.Cash and Cash Equivalent - End of the Year is 1096 Crore. (As per its latest financial report).
3. NBCC has a book value of 18.83 Rs. per share.Consistent dividend given over last several years.
4. Financial health: Number tells the true story, everything else is a lie.
5. NBCC has 80,000 Crore worth projects in its books currently. ( As per its official website).
6. Shareholding pattern, 74% owned by Indian Government only.
7. Technically also, It can be bought at this level. RSI below 30 (oversold)
2) Bharat Electronics Ltd. (Current Market Price: 103.60 Rs., Target Price : 140 Rs, Tenure : 6 Months)
About The company:
Bharat Electronics Limited is engaged in design, manufacture and supply of electronics products/systems for the defense requirements, as well as for nondefense markets. The Company's principal products/services include weapon systems, radar and fire control systems, and communication. Its defense products include defense communication; radars; naval systems; command, control, communications, computers, and intelligence systems; weapon systems; telecom and broadcast systems; electronic warfare; electro optics, and solar photovoltaic systems. Its nondefense products include turnkey system solutions; civilian radars; e-governance systems, and homeland security. Its other range of products include electronic voting machines, communication equipment, radar warning receiver and casings.
Reasons: Top 7 reasons to buy BEL Ltd.
BEL is trading 18.56 times of its FY17 earnings with EPS of 5.74 Rs at CMP of 103.60 Rs. Consistent profit making. Revenue: 8,825 crores INR (March 31, 2017).
2. This company has cash, a lot of cash. Cash and Cash Equivalent - End of the Year is 2685 Crore. (As per its latest financial report).
3. BEL has a book value of 34.70 Rs. per share. Consistent dividend given over last several years.
4. Financial health and ratios.
5. Big Mutual Funds have already invested millions of rupees.
6. Shareholding pattern, 66% owned by Indian Government only.
7. Technically it is neutral but can be bought at this price.
Both stocks are safe because even it goes down, the consistent dividend will take care of the losses. Both stocks are Government owned so a bit safer than private bets.
For more articles, join Free Telegram Channel : t.me/equityboxx [Author is SEBI Registered Research Analyst.]