Last week's carnage saw heavy selling by Foreign Institutional Investors (FIIs) with domestic institutions lending solid support to the market. The Nifty lost almost 3.6 per cent in the mayhem with several mid caps falling sharply.
Capital infusion by the government, a likely possibility that non-performing assets for the bank may have peaked and the appointment of a new MD and CEO (Rakesh Sharma) from the of private sector lender to head Canara Bank are positive triggers for the bank .
The stock has corrected sharply in the last one week from levels of Rs 330 to the current price of Rs 280. At a price to earnings multiple of barely 6 times, Canara Bank is among the best shares from the government banking space.
It's non performing asset is much lower than peers like Punjab national Bank, BOB or SBI. All these make the stock an attractive buy at the current levels.
Exide Industries is a leading player in the batteries business catering to diversified needs from automotive batteries to even defense related batteries for submarines. It is among the few companies in the world to do so.
Exide has seven factories that manufacture millions of batteries every year. The stock of Exide has seen a downside in recent months and is trading at Rs 155, very near its 52-week low of Rs 135.
The company can report an EPS of around Rs 8 for FY 2015-16, which gives it a p/e multiple of 20 times. The company has a solid brand equity and good expansion plans, which should makes the stock attractive at the current levels.
Transport Corporation of India
Transport Corporation of India is among the prominent players in the transport business. The company's shares price recently rallied on hopes that the implementation of GST could boost demand for the company's services.
Transport Corporation has as many as 9000 trailers and trucks and also has a joint venture with Container Corporation.
Transport Corporation of India is likely to benefit immensely if the growth in the economy picks-up. A good opportunity to pick the shares at the current price. The price to earnings ratio is around 15 times. Growth in the economy and implementation of GST could be beneficial for the company and the share price.