The virus won’t shut down the market forever and anyone can say this with absolute certainty. The day will come when Covid-19 will be disappeared and things will be settled as usual. So, if the future is certain then why not to plan it today.
Two most confusing situation for an investor:
1. What to buy when the market is at all-time high as there are fewer options. 2. What to buy when the market sees a sudden down fall as there are so many many options.
Historically, equities are among the best asset classes in the world for better returns in the long term. There are more than 7000+ companies are listed in India and almost all of them are bleeding. So,
Here are my 8 stock lists you should “Monitor” to invest at the right time. (With Fundamental Analysis)
1. Infosys ( Current Price: 580 Rs.)
It is the second-largest Indian IT company after TCS, 596th largest public company in the world based on revenue. Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services.
Credit rating: CRISIL A1+ | Market Cap: 2,45,292 Cr | Debt: 0.00 Cr. P/E: 14.97 | Div Yield(%): 3.7 | Pledged percentage: 0.00 % | Interest Coverage: 176.38 | Free cash flow 5years: 45,798 Cr.
2. Larsen & Toubro Ltd. ( Current Price: 852 Rs.)
Business Segments: L&T is a technology, engineering, construction, manufacturing and financial services company. The Company’s segments include Infrastructure, Power, Metallurgical & Material Handling, Heavy Engineering, Electrical & Automation, Hydrocarbon, IT & Technology Services, Financial Services, Developmental projects, realty and shipbuilding.
As of March 31, 2018, L&T Group comprises 93 subsidiaries, 8 associates, 34 joint-venture and 33 joint operations companies.
Credit rating: [ICRA]A1+ Stable| Market Cap: 1,36,947 Cr | P/E: 12.20 | Pledged percentage: 0.00 % | Number of employees 45,000+ | Inventory turnover ratio: 25.04
3. Kotak Mahindra Bank Ltd. ( Current Price: 1,266 Rs.)
It is the second-largest Indian private sector bank by market capitalization.
Bank’s segments: Treasury, BMU and Corporate centre, dealing in debt, equity, money market, forex market, derivatives and investments and primary dealership of Government securities and Balance Sheet Management Unit (BMU), Retail Banking, lending and credit cards, Corporate/Wholesale Banking, wholesale borrowings and lending, retail vehicle finance, wholesale trade finance, financing against securities, Advisory and Transactional Services, Asset Management and Insurance.
Credit rating: Long Term — Bank Loans AAA/Stable Market Cap: 2,57,865 Cr | P/E: 36| Pledged percentage: 0.00 % Number of employees: 35,000+
4. Coal India Ltd. ( Current Price: 132 Rs.)
Coal India is the world’s number 1 coal mining company, with significant reserves in place. The company has a dividend yield of 10% and extraordinary fundamentals like ROCE: 109 % and ROE: 74.90 %. See detailed analysis here
5. Reliance Industries Ltd. ( Current Price: 1,028 Rs.)
This company needs no introduction. Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalization, and the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation. On 18 October 2007, Reliance Industries became the first Indian company to exceed $100 billion market capitalization.
RIL- Aramco $15 bn Deal: According to a Bloomberg report, Saudi Aramco has continued its due diligence process of Reliance’s oil-to-chemical business. Concerns over a delay in the deal were rising after the outbreak of the coronavirus pandemic and the massive fall in global crude oil prices.
Credit rating: [ICRA]A1+ Stable| Market Cap: 6,64,633 Cr | P/E: 15.26 | Sales Growth (3Yrs): 27.60 % | Pledged percentage: 0.00 % | Number of employees: 2,00,000+
6. ITC ( Current Price: 176 Rs.)
The company completed 100 years in 2010 and as of 2018–19, had an annual turnover of 48,353 Crore and a market capitalization of 1,879,31 Cr. It employs over 30,000 people at more than 60 locations across India and is part of Forbes 2000 list. (Wiki)
Segments and Brands: FMCG; Hotels; Paperboards, Paper and Packaging, and Agri-Business. Its 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.
Credit rating: [ICRA]A1+ Stable | Pledged percentage: 0.00 % ROCE: 34.62 % | ROE: 22.69 % | Free cash flow 5years: 41,380 Cr.
7. ONGC ( Current Price: 71 Rs.)
In a government survey for fiscal year 2019–20, it was ranked as the largest profit-making PSU in India. It is ranked 7th among the Top 250 Global Energy Companies by Platts.ONGC produces around 70% of India’s crude oil (equivalent to around 57% of the country’s total demand) and around 84% of its natural gas. In November 2010 Government of India gave ONGC the Maharatna status.
The stock has a massive dividend yield of 11.64%
Credit rating: [ICRA]A1+ Stable | Pledged percentage: 0.00 % ROCE: 20 % | ROE: 15 % | Free cash flow 5years: 138,541 Cr.
8. Abbott India Limited ( Current Price: 14,478 Rs.)
Beating the market volatility Abbott gave positive returns in almost all negative situations. Where global markets are crashing, this is one of the rarest cash-rich stocks which is stable amind the deadliest crackdown of markets.
ROCE: 37.36 % | ROE: 24.00 % | Pledged percentage: 0.00 % Free cash flow 5years: 1,396 Cr. | Interest Coverage Ratio: 129.54 | Debt to equity: 0.02
Nothing is safest when it comes to the stock market but these 8 stocks are less likely to disappoint the investors as per historic facts, figures and projections.
As discussed in my previous article Coronavirus: Impact and Rescue Plans for Investors:
The only suggestion would be waiting for the right time and then average your positions and don’t be fooled by short term rallies. Even if there is still room for more downside but once the market forms the bottom, there will be numerous opportunities to tap and you will have more options than your requirements, New Investors Don’t try to jump into the market based on short term false rallies. Wait for the right time and concentrate majorly on blue-chips and stable companies as of now.
How would I know if the market forms the bottom?
Here are some of the signs:
1. The slowing pace of confirmed cases of Covid-19. 2. Releasing the lockdowns of countries. 3. Stable market for a week or two. (No circuits) 4. No more work from home. 5. Schools, malls and theaters run as usual. 6. Intense inflows of FIIs/FPIs in equities.
Even one of the greatest investors/analysts/Marketgurus never expected that Sensex will fall from 41,945 to 31,412 less than 60 days. Never! But this is the fact we all have to digest. The best part is, Since the beginning of Indian Stock Markets, no evil power dared to stop it to reach to new highs. Never!
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