Investing in stock markets is fraught with risks, but buying well-researched stock picks can generate mind-boggling returns over the next few years.
 |
| 6 stocks that may fetch you a small fortune in the next 5 years. |
Investing in stock markets is not only fraught with risks, but can also be a tough job at times. When to invest and which stock to buy out of thousands of companies listed in India? What factors to look at before selecting a stock? And even if someone has chosen some stocks, what are the chances of giving them the expected returns? True, nothing is certain in the stock markets. Still, according to financial experts, investing in well-researched stock picks can generate mind-boggling returns over the next few years. Here are 5 stocks that may fetch you a small fortune in the next 5 years:
1. AB Capital
CMP: 202.55
Aditya Birla Capital Ltd (ABCL) is one of the largest financial services players in India. “ABCL has business interests in life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses. The AUM of the company has registered a 33% year on year growth to Rs 2,613 billion. The company has been trading at a low price to sales ratio of 7.58,” says Abhinav Angirish, Managing Director, Abchlor Investment Advisor Pvt Ltd.
2. Pidilite
CMP: 755
Pidilite Industries Ltd is an India-based adhesives manufacturing company. It also sells art material, construction chemicals and other industrial chemicals. Pidilite markets the Fevicol range of adhesives. It’s currently trading at a PE of 55.90, whereas the industry PE is at 51. The company is virtually debt free and has been reporting a good consistent profit growth of 22.29% over the last 5 years. The company has also been giving a good return to investors. The ROE for the company has been 28.47% for the last 3 years.
3. Asian Paints
CMP: 1142
Asian Paints Ltd is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services. It is India’s largest and Asia’s third largest paints corporation. “Considering the market leadership position and consistent performance over the years, it is currently trading at a low PE ratio of 57. Except from this the company is debt free and has maintained a healthy dividend payout of 45.13% for the last few years,” says Angirish.
4. Amar Raja Batteries
CMP: 680.85
The Amara Raja Group is an Indian conglomerate which is the second largest selling automotive battery brand in India today. The group has presence in automotive battery business, packaged foods and beverages, electronics products manufacturing, infrastructure sector, power system production and fabrication of sheet metal products and fasteners. Going forward demand for motors is expected to see a robust growth and therefore prospects of the Amar Raja Group seem bright. The stock is trading at a price to book value of 4.32, whereas the industry median is 6.
5. Bank of Baroda
CMP: 165.25
Bank of Baroda is an Indian state-owned international banking and financial services company headquartered at Vadodara in Gujarat, India. It has total assets in excess of Rs 3.58 trillion and a network of 5538 branches in India and abroad. It is also India’s 5th biggest bank by assets. “Sentiment on this stock has been negative for the last few quarters due to deterioration in asset quality and management inefficiency, but going forward the banking sector in India is expected to do well. Even the government is taking big initiatives to improve the current status of the banking sector. Considering the given scenario and the future prospects, the stock is trading at a deep discount with a price to book value ratio of 0.93,” informs Angirish.
6. Suzlon
CMP: 14.75
The long-term result of Suzlon depends on how the renewable energy sector plays out in the future. Currently, India is the third larges producer of electricity in the world with high installed capacity of 300 Gigawatts. Since the government is taking serious initiative in the renewable sector, the stock is very promising for long term.
(Disclaimer: Although due care has been taken while making these recommendations, investors are advised to consult their financial advisors before investing in any stock based on these recommendations.)
No comments:
Post a Comment