First warning: Indian markets are not cheap at all and are falling for the past few weeks. If emotions get worse then no matter what the stock can fall, no matter how strong they are. However, we have picked up some stocks that are capable of weathering the storm and can be good prices in the long run.
Pc jeweler
This stock has fallen from the current level of Rs. 150 to the level of 500 rupees. There were some concerns about corporate governance. Initially, there were reports linking the company to the Vikrami, which were investigated by SEBI for manipulation of the price.
The company refused any involvement with Vikrami and later was given a clean chit by SEBI. Then came some information from a promoter who was transferring some shares to the relative, which was true.
Probably, it should have been notified, though it was unlikely as a result of any significant fundamental change in the company.
In any case, the shares fell from Rs 500 to Rs 150, which makes it attractive at the present level.
PC Jeweler: Good Expansion Plans
The company recently gave a presentation, which showed the newly opened showrooms recently.
Expansion plans on PC Jewelers are clearly on track. The company also announced the purchase of shares of 350 rupees against the current market value of Rs 150.
Near the buyback date, we should see some speed in the stock. Stock is a good bet, provided that the buyback price is higher than the current market price.
Basically, the stock is trading on 9 / e only 9 times ahead of earnings. It is a good stock to buy at a current price of 150 rupees.
Polyplex corporation
Polyplex Corporation Limited (PCL) is one of the world's largest manufacturers of thin polyethylene terephthalate (PET) film.
It finds applications in packaging, industrial, electrical and imaging industries. The company has plants and distribution facilities in India, Thailand, Turkey and America. Polyplex has 186,000 metric tons of thin PET film and 28,800 metric tons thick PET film, which includes a large part of its capacity.
In the past years, the company has integrated the production of PET Ralin, which is important raw material for the production of PET films. It is good for the company who is able to save on cost.
Polyplex: Strong on fundamentals
Polyplex is strong on fundamentals and has been paying very good dividends. In fact, the company has paid a dividend of 90% in 2017 and 60% in 2016. The dividend for 2018 is a superb Rs 35 per share. The company's shares are also currently trade below the book value.
Apart from this the end consumer industry are also growing at a frantic pace which augurs well for the company. The company can report an EPS of Rs 70 for 2018-19. The stock is thus available at p/e of just 6 times. For some reason the stock has not received good discounting and most certainly deserves better valuation. It will not be a surprise to see the stock re-rated once again.
Sterlite Technologies
This company can be one of the main beneficiaries of digital drive of India. Sterlite Technologies (STL) has a solid 40 percent market share in the domestic optical fiber market. It is riding on the demand of OFF / OFC of global telecom companies as they are planning to create a 5G network.
The company is planning to expand its optical fiber capacity to approximately 50 percent in the next 18 months. Sterlite Technologies is planning to utilize up to 90 percent capacity utilization by 2019. Rapid increases in revenues can be seen in the coming years.
Sterlite Technologies: A Good Purchase
Sterlite Technologies also has a good solid presence in the software services business, where its strong order position is.
We believe that by 201 9-2020, the company can get EPS of at least 14 rupees. If we apply 40 years of P / E, then the stock should be traded at least 560 rupees for at least Rs. 560.
The expansion, the strong order book and a focused management team, the stock of Sterlite Technologies makes a good bet at the present level.
Disclaimer
This article is strictly for informational purposes only. It is not demanding to buy or sell in securities or other financial instruments. Granium Information Technologies Pvt. Ltd., its subsidiaries, affiliates and the author of this article do not accept criminality for the loss and / or damage arising on the basis of information in this article.
Taxation on stock
It is important to remember that from April 1, 2018, effective long term capital gains will be taxed, which will be levied on the stock. Therefore, investors can not believe that 10 percent tax will be applicable.
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