Missed the party? Here are two safe stocks (below 100 Rs.) that may give 50–60% returns in a year.
Housing and Urban Development Corporation Ltd. (Current Market Price: 56.60 Rs, Target Price: 90 Rs. , Tenure : 1 year)
About the company:
Housing And Urban Development Corporation Limited is an India-based techno‐financing company. The Company provides long term finance for construction of houses for residential purposes or finance or undertakes housing and urban development programs in the country. It finances or undertakes, wholly or partly, the setting up of the new or satellite towns and industrial enterprises of building material. The Company promotes, establishes, assists, collaborates and provides consultancy services for the projects and engages in designing and planning of works relating to its programs in India and abroad.
Stock is trading at just 13 times of its FY18 earnings with an eps of 4 (TTM). Consistent profit making company.
2) Sales and net profit: Company’s sales revenue surged to 1169 crore as compared to last quarter ( 1064 Crore). Net profit jumped 36% to 222 Cr from 163 Cr. which was in last qtr.
3) Margin: Company is operating at a margin of 24%, It means for every 100 Rs sales, the company is making net profit of 24 Rs. ( As compared to its peers who are making only 7%).
4) Dividend: It’s IPO launched in the year of 2017 and since then it giving 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 9.18% ( Peers average 6.27), ROA is 2.16% ( Peers average .91), ROCE is 8.47% ( Peers average 9).
6) One of the best MFs are heavily invested in this stocks. Can be seen in their latest updated portfolios.
7. Business Segmentation : Housing and Urban Development Corporation Ltd. key Products/Revenue Segments include:
Interest which contributed Rs 3472.94 Crore to Sales Value (99.25 % of Total Sales), Other Operating Revenue which contributed Rs 22.40 Crore to Sales Value (0.64 % of Total Sales).
Income From Financial Services which contributed Rs 3.51 Crore to Sales Value (0.10 % of Total Sales)for the year ending 31-Mar-2017.
8. Why safe? : Indian Government holds 90% stake (1,797,841,253 shares) in the company. General public has only 106,573,071 shares altogether .
9.Working Capital: The company has enough working capital to works and the same can be seen in these financial ratio.
10. Stock is brutally hammered by the market but now we can see some upside move or you can say its bottomed up now.
2. Mangalore Refinery And Petrochemicals Ltd. (Current Market Price: 84.45 Rs, Target Price: 130 Rs. , Tenure : 1 year)
About the company:
Mangalore Refinery and Petrochemicals Limited is a holding company .The Company is engaged in the business of refinery and manufacturing of refined petroleum products. Its segments include Domestic Sale and Export Sale. The Company is involved in the production of liquid or gaseous fuels, illuminating oils, lubricating oils or greases or other products from crude petroleum, and manufacture of other petroleum products, such as bitumen. Its products include pet coke, liquefied petroleum gas, fuel gas, mixed xylene, high speed diesel (HSD), vacuum gas oil (VGO) and automatic transmission fluid (ATF). It operates retail outlets under the HiQ brand.
Stock has a book value of 60 and trading at just just 6.67 times of its FY18 earnings with an massive eps of 12.69 (TTM).
2) Sales and net profit: Company’s sales revenue surged to approx 15,000 crore YoY. Net profit at 542 Crore.
3) Why safe? : It’s parent company is ONGC. Indian Government holds 89% stake (1,552,507,615 shares) in the company. General public has only 84,357,504 shares altogether .
4) Dividend: Massive dividends every time.
5) Financial ratios and Margins:
6) Mutual Fund activities:
7. Business Segmentation : Mangalore Refinery And Petrochemicals Ltd. key Products/Revenue Segments include:
Petroleum Products which contributed Rs 59415.05 Crore to Sales Value (99.97 % of Total Sales),
Scrap which contributed Rs 8.36 Crore to Sales Value (0.01 % of Total Sales) and
Other Operating Revenue which contributed Rs 7.08 Crore to Sales Value (0.01 % of Total Sales)for the year ending 31-Mar-2017.
8. Debt Equity: The company has a Debt/Equity ratio is .44 which shows that company has negligible debt.
9. “Stock is BULLISH on charts”.
Both Stocks are safe and can be bought now for longer term. For more articles and stock market updates join our free Telegram channel t.me/equityboxx Akshay Seth Research Analyst (SEBI Regd.) www.linkedin.com/in/akshay-seth-1b7a1668