5 Stocks To Buy And Hold For The Next 3-5 Years

Updated: Monday, November 27, 2017, 9:19 [IST]

Benchmark indices are at near historic highs of 33,600 points on the Sensex. At these levels, you need to be cautious and buy only selectively. Here are a few stocks that could offer good value at the current levels.

Granules India: Great revenue visibility

Granules India is a company that is engaged in Active Pharmaceutical Ingredients, finished dosages and speciality products.

There are a number of reasons to recommend the stock of Granules India. The first is that there is a likelihood that there are a number of approvals from the US FDA for ANDA products, opening up more product launches for the company in the US.

The second reason is that the capacity expansion at the core business will kick-in this year. What this means that the next few years could see some robust increase in revenues and profitability.

The first launch from its four -product basket tie
-up with US pharma Windlas was on schedule.

Granules India: Not very expensive

With the ramp-up in formulations, Granules India margins are likely to expand. The Omnichem joint venture ramp-up would also reflect in net margin improvement from FY20E.

The Granules India stock at Rs 125, is currently trading at a p/e of just 14 times, its EPS of Rs 9 by 2020. The stock is not too expensive at the current levels and can be bought into for a time frame of 2-3 years.

Check stock quote of Granules India here

Great Prospects Ahead

Sun TV is a debt free company, that has a very good dividend payout. Apart from television broadcasting, Sun TV has a significant presence in FM radio stations across the country.

The company is likely to be one of the top beneficiaries of the phase 3 and 4 digitization process. SUN TV has a market share of almost 60 per cent in the Tamil market and a significant presence in other southern states like Andhra, Telangana, Kerala and Karnataka.

Check stock quote of Sun TV here

Owners of Sunrisers Hyderabad

Sun TV also owns Sunrisers Hyderabad the IPL franchisee. Star TV recently won the media rights of IPL for a whopping sum. This will benefit SUN TV as higher media and sponsorship rights will bolster its revenues.

The promoters have a very high holding in the company of 75 per cent. At the current market price the shares of SUN TV trade at a p/e of just 28 times, making the stock an attractive bet at the current levels.

A great long-term story

Tata Motors a good set of numbers for the quarter ending Sept 30, 2017. Jaguar volumes were up 6.6 per cent, while Landrover volumes were up 9.2 per cent.

A spate of new launches at JLR is likely to see a spike in volume growth. Apart from this, the domestic business has seen a sharp rebound in HCV and LCV sales.

As economic recovery takes shape, we are likely to see a further surge in volumes at the company. This is probably one of the cheapest Sensex stocks, which trades at a p/e of just about 7 times likely 2018-19 EPS of Rs 60. A good bet at the current levels.

Check stock quote of Tata Motors here

Disclaimer

Disclaimer: This article is strictly for informational purposes only. It is not a solicitation to buy, sell in equity shares mentioned. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.