Invest in Quality Stocks: The stock market is growing steadily every day, along with the valuation of the shares. On Monday, February 8, the Sensex has also crossed the level of 51500. On January 21, the Sensex broke the level of 50 thousand. The Nifty also remains above 15100. Since the low of March, the market has gained nearly 100 percent. This boom is being supported by corporate earnings, COVID 19 vaccination, recovery in the economy and budget announcements. However, this rapid growth is not a balance in the growth ratio of the economy. Experts have also expressed concern about the high valuation of the market. In such a situation, investors are being advised to remain stock-specific.
In this boom of the market, investors are now looking for quality shares. Here we have selected some such cheap and quality stocks, which the brokerage house has a positive view of. The value of these shares is less than Rs 100. Brokerage houses whose companies have these shares are calling their outlook stable or strong. The business of these companies is on the right track, they are either making profits or are expected to grow further. These include shares such as Engineers India, SAIL and Shree Digvijay Cement Company.
Engineers India Limited provides engineering consultancy and EPC services to its clients globally. Brokerage house Prabhudas Liladhar has advised investing in the stock with a target of Rs 115. The current price of the stock is Rs 78, so in that sense, it can get about 48 percent return. The company’s revenue in the December quarter was down about 6 per cent year-on-year, though due to the challenges of COVID 19. Profit was weaker than anticipated. Order was reduced due to COVID 19. But now as the effect of COVID 19 is decreasing, order inflow is expected to be healthy. Management commentary is very positive. All of the company have positive estimates about the project.
The Steel Authority of India Limited is a government steel making company. In a recent budget speech, the Finance Minister announced the reduction of import duty on many types of metals including steel. This is a very positive step for SAIL. In the coming days, the infra activity in the country will intensify, which will increase the demand for metals like steels. SAIL’s EBITDA grew 147 per cent year-on-year to Rs 5080 crore in the December quarter. This is the highest ever. Net debt has also come down and it has come down by 12 per cent to Rs 44300 crore on a quarterly basis. Motilal Oswal has suggested an investment in the stock with a target of Rs 81. In terms of the current price of 68 rupees, it can get 20 percent return.
Shree Digvijay Cement Company
Shree Digvijay Cement Company’s third-quarter performance has been better both yearly and quarterly. Net revenue grew 17.2 percent year-on-year and 47.9 percent quarter-on-quarter. EBIDTA has grown by 32.4 per cent and 157 per cent on an annual and quarterly basis. EBIDTA has been strong due to growth in the top line and better operational efficiency. EBIDTA margin has also increased 215 bps and 799 bps on an annual and quarterly basis. The PAT has grown 47 per cent and 444 per cent annually and quarterly. Brokerage house Arihant Capital has a recommendation to invest in the stock with a target of Rs 76. The current price of the stock can get 31 per cent return in terms of Rs 58.
(Note: We have given advice here on the basis of quarterly results of companies and brokerage house report. Considering the risk of the market, take the opinion of experts before investing.)