Best Stocks to Buy for High Returns: In the stock market, it is not necessary that only the shares of well-known companies can provide good returns. There are many cheap stocks in the market, whose fundamentals remain strong. The business of those companies is good and there is a possibility of good earning in them. If such shares are identified, then you can get good returns in them. Experts are not denying further market correction due to high valuation.
In such a time, if you are also confused about investing, then it is better to invest in those stocks which are cheap, with less and less, their fundamentals are looking strong. Here we have selected a few cheap stocks like this for 100 rupees. Looking at their better growth outlook, experts and brokerage houses are also positive about them. The advantage of cheap stocks will also be that in this fluctuating market, their prices will not have much effect. At the same time, you can give good returns on growth.
Welspun India
Welspun India is the leading textile company in the country. It is the second largest company in Asia in terms of making Terry towels. The company exports a large part of its home textile product to different countries. Brokerage house Sharekhan at Welspun India has set a target of Rs 90, recommending investment. The current price of the share is 74 rupees. In this context, it can get 22 percent return. India’s Terry Towel and Bed Sheet exports to the US increased by 19 per cent and 47 per cent in January. The company is seeing good growth in the long term. The company can also benefit from the government’s PLI scheme. The company’s debt is decreasing. Further, management has a focus on growth.
Jamna Auto Industries
Jamna Auto Industries is a company manufacturing automotive suspension products such as parabolic, tapered leaf spring, lift axle and air suspension. The company is primarily an original equipment manufacturer (OEM) in the commercial vehicle segment. The company is benefiting from increased demand from OEMs. Jamna Auto has a market share of 68 percent in the domestic OEM segment. The company’s client base is strong. Brokerage house Dolat Capital has set a target of Rs 99, recommending investment in the stock. The current price of the share is 69 rupees. In this context, it can get 45 percent return. The brokerage believes that the company’s revenue and EBITDA can grow at 48 per cent and 57 per cent CAGR for FY21-23E.
NCC
Brokerage house Geojit has set a target of Rs 120, recommending investment in NCC. In terms of the current price of the stock at Rs 87, you can get 38 per cent return in it. NCC is the country’s well-diversified large construction company, whose footwear is in every segment of the construction sector. The performance of NCC is mixed in the December quarter. There has been a 9.4 per cent decline in revenue on an annual basis. On the other hand, EBITDA margin improved 67bps to 12.5 per cent on an annual basis. The orderbook is strong and is worth Rs 39,182 crore. The company has also received some new orders and many are in the pipeline. The company is seeing good growth ahead.
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Arvind Limited
Arvind Limited is a Gujarat based textile manufacturing company. The company makes cotton shirts, denim, nits and bottomweight fabrics. Brokerage house Sharekhan has set a target of Rs 95, recommending investment in Arvind Limited. According to the current price, the stock can get 26 percent return. After the lockdown, the overall business of the company showed 81 per cent and 89 per cent recovery in the Garmenting and Denim business in the December quarter. The margin of textile business has increased to 12.5 percent.
(Note: We have given information here based on the report of the brokerage house. In view of the risk of the stock market, be sure to consult the experts before investing.)