Search

Which Stocks to buy after 2019 Lok Sabha election results?

As per data, ‘Modi wave’ sweeps the nation and can easily win with the majority and Sensex has already surged 2,354 pts within a week.

So, we should only buy those stocks which haven't been participated much in this bull run yet but they have the potential to give better returns.

These 5 stocks can be bought as of now:

  1. Ashok Leyland (Current Price: 88.60 Rs, Target 125 in a year)

Ashok Leyland recently showed interest in partnership with Elon Musk-owned Tesla to help the latter deploy its vehicles in India after Musk expressed his interest in expanding its operation in India this year or definitely by next year.

If this happens then Ashok Leyland can surge to new highs.

It is the second largest commercial vehicle manufacturer in India, fourth largest manufacturer of buses in the world and 10th largest manufacturer of trucks globally.

  • Fundamental Analysis: Strong

ROCE: 28.40 % | ROE: 23.22 % | Sales Growth (3Yrs): 23.55 % | Free cash flow 5years: 10,710 Cr. | Interest Coverage Ratio: 38.15 | Debt: 388.98 Cr. | Current ratio: 0.83 | Quick ratio: 0.50 | Promoter holding: 51.12 % | Net worth: 7,072 Cr. | Reserves: 6,778 Cr. | Return on assets: 18.02 % | Debt to equity: 0.06.

  • Technical Analysis (Short Term): BUY Signal

2. NBCC (Current Price: 57.90 Rs, Target 85 in a year)

NBCC has a large order book and 29% growth during the December quarter has not impressed the Street yet, given the stock continues to trade near its 52-week lows.

Revenue growth in the quarter was led by its largest project management and consultancy (PMC) services segment, which reported a strong growth of 33.5%.

  • Fundamental Analysis : Strong

ROCE: 28.84 % | ROE: 19.09 % | Sales Growth (3Yrs): 10.33 % | Free cash flow 5years: 10,710 Cr. | Interest Coverage Ratio: 6,931 | Debt: 0 | Current ratio: 1.12 | Quick ratio: .81 | Promoter holding: 68.18 % | Net worth: 1,348 Cr. | Reserves: 1,168 Cr. | Return on assets: 19 % | Debt to equity: 0.

  • Technical Analysis (Short Term): BUY Signal

3. ITC (Current Price: 288 Rs, Target 350 in a year)

ITC has a well-diversified business. The Company operates through four segments: FMCG; Hotels; Paperboards, Paper and Packaging, and Agri-Business.

Its famous brands include Aashirvaad, Sunfeast Dark Fantasy, Bingo!, Yumitos, YiPPee!, Candyman, GumOn, Classmate, Fiama Di Wills, Vivel, Superia, Engage, Wills Lifestyle, John Players, Mangaldeep and Aim, among others.

It looks very interesting and compared with its peers in valuation term, it is well priced. This is a good time to buy ITC with a target of Rs 288.

  • Fundamental Analysis: Strong

ROCE: 34.21% | ROE: 22.65 % | Sales Growth (3Yrs): 3.4% | Free cash flow 5years: 34,936 Cr. | Interest Coverage Ratio: 540 | Debt: 8 Cr.| Current ratio: 3 | Quick ratio: 2.81 | Net worth: 57,950 Cr. | Reserves: 56,724 Cr. | Return on assets: 23 % | Debt to equity: 0.

  • Technical Analysis (Short Term): Sell Signal

4. NMDC (Current Price: 96 Rs, Target 130 in a year)

  • Recently NMDC sets up ‘NMDC Global’ for international opportunities as while maintaining its leadership position in Indian iron ore industry, NMDC is also focussing on increasing its geographic foothold globally

  • NMDC is the country’s single largest iron ore producer, currently producing about 35 million tonnes of iron ore from three fully mechanized mines.

  • NMDC to invest $1 billion on infrastructure.

  • Fundamental Analysis: Strong

ROCE: 25.52 % | ROE: 15.77 % | Free cash flow 5years: 7,426 Cr. | Interest Coverage Ratio: 186.62 | Pledged percentage: 0.00 % | Debt to equity: 0.00 | Current ratio: 3.74 | Quick ratio: 3.52 | Promoter holding: 72.28 % | Net worth: 25,990 Cr. | Return on assets: 15.18 %.

  • Technical Analysis (Short Term): SELL Signal

5. DLF (Current Price: 181 Rs, Target 250 in a year)

DLF aims to double the rental business to Rs 4700 crore in the next 3 years. Company has successfully completed a QIP of Rs 31.7 bn involving the issuance of 173 mn shares at Rs 183.4 apiece. (It also removes regulatory overhang that stipulates promoter shareholding shall not exceed 75%.)

In Q4 DLF Revenues were up 81.5% to Rs 2,500.4 crore and Net profit up 76.3 % to Rs 436.6 crore.

Ebitda profit at Rs 533.6 crore versus Ebidta loss of Rs 13.8 crore.

  • Fundamental Analysis: Strong

  • Technical Analysis (Short Term): BUY Signal

[23 May 2019][Time: 03:31 P.M] [BJP= 348, CONG= 91, OTH: 103] (Source: ZeeBiz)

Akshay Seth Linkedin

Open your zero brokerage demat account here

Hire a personal SEBI Registered advisor for your investment: Know more Learn Stock analysis via video lectures or skype here Let the advisor design your Stock Portfolio for the Long term: Know more Get daily stock recommendations here Follow on Facebook: here Twitter here

8 views
  • LinkedIn Social Icon
  • YouTube Social  Icon
  • Facebook Basic Square
  • Twitter Basic Square

© 2016 by Equityboxx | ©equityboxx |  info@equityboxx.com | +91 8920161884 | SEBI Regd. INA000010122