Two safe stocks (below 100 Rs.) that may give 50–60% returns in a year.
Jain Irrigation (Current Market Price: 74.65 Rs, Target Price: 110 Rs. , Tenure : 1 year)
About the company:
Jain Irrigation Systems Limited is an agri-business company. The Company is engaged in manufacture of plastic products, and manufacture of fruit or vegetable juices, their concentrates squashes and powder. Its segments include Hi-Tech Agri Input Products, Industrial Products and Non-conventional Energy. The High-Tech Agri Input Products segment consists of micro and sprinkler irrigation systems, polyvinyl chloride (PVC) pipes, tissue culture and other agri inputs.
Why Jain Irrigation:
Stock is trading at just 13 times of its FY18 earnings with an eps of 5.66 (TTM). EPS has grown multi fold in last three quarters only.
2) Sales and net profit: Company’s sales revenue surged to 2800 crore as compared to last quarter ( 1889 Crore). Net profit jumped 46% to 92 Cr from 66 Cr. which was in last qtr.
3) Cash flow: Any company earn cash through three activities: Financing, investing and operations. So operational activity should be cash generating.
cash flow can be seen for Jain Irrigation, Surged from 372 Cr to 783 Cr in just 4 yeas.
4) Dividend: Dividend actually shows how much the company is thinking about the investors. Some of money should be distributed as dividend and rest must be taken as reserves.
5) Financial ratios: ROE is 4.23% ( Peers average 3.62), ROA is 1.59% ( Peers average 2.26), ROCE is 8.68% ( Peers average 6.43).
6) One of the best MFs are heavily invested in this stock. Can be seen in their latest updated portfolios.
7. Business Segmentation : Jain Irrigation Systems Ltd. key Products/Revenue Segments include
Plastic Products which contributed Rs 3622.47 Crore to Sales Value (93.75 % of Total Sales),
Other Operating Revenue which contributed Rs 123.02 Crore to Sales Value (3.18 % of Total Sales),
Other Services which contributed Rs 116.86 Crore to Sales Value (3.02 % of Total Sales).
Scrap which contributed Rs 1.61 Crore to Sales Value (0.04 % of Total Sales)for the year ending 31-Mar-2017.
8. Stock is virtually monopoly, as its nearest peers (Rungta Irri, Sprayking Agro Equipment Ltd & EPC Industrie Ltd.) aren’t profit making and get less orders.
9. Debt Equity: The company has a Debt/Equity ratio is .53 which shows that company has less debt.
10. On July 21, 2018, 08:41 IST Jain Irrigation bags Rs 975-crore order from MP government.
2. NCC Ltd. (Current Market Price: 79.75 Rs, Target Price: 120 Rs. ,Tenure : 1 year)
About the company:
NCC Limited is engaged in the construction/project activities in the infrastructure sector. The Company is involved in the construction of industrial and commercial buildings, roads, bridges and flyovers, water supply and environment projects, housing, power transmission lines, irrigation and hydrothermal power projects and real estate development. Its geographic segments include Within India and Outside India. Its business divisions include buildings and housing, roads, electrical, water and environment, irrigation, railways, power, metals, mining and international.
Stock has a book value of 72.97 and trading at just 16.72 times of its FY18 earnings with an eps of 4.77 (TTM). EPS has been consistent.
2) Sales and net profit: Company’s sales revenue surged to 2394 crore as compared to last quarter ( 1850 Crore). Net profit jumped 61% to 102 Cr YoY.
3) Cash flow: Operating cash can be seen as 446 Cr with total Cash cash equivalent is 60 Cr.
4) Dividend: Company gives dividend every year.
5) Financial ratios and Margins:
6) Mutual Fund activities:
7. Business Segmentation :
NCC Ltd. key Products/Revenue Segments include
Income From Contracts which contributed Rs 7880.27 Crore to Sales Value (99.85 % of Total Sales) and
Other Operating Revenue which contributed Rs 11.81 Crore to Sales Value (0.14 % of Total Sales)for the year ending 31-Mar-2017.
8. Debt Equity: The company has a Debt/Equity ratio is .10 which shows that company has negligible debt.
9. “We are targeting Rs 11,000 crore top line in FY19” - YD Murthy, Executive Vice President NCC
Both Stocks are safe and can be bought now! For more articles, join Free Telegram Channel : t.me/equityboxx Facebook: https://facebook.com/equityboxx/ LinkedIn: www.linkedin.com/in/akshay-seth-1b7a1668 [Author is SEBI Regd. Research Analyst]