All of the Sensex companies have created tremendous wealth over the last 10 and 20 years. They have beaten returns from banks deposits by a hefty margin. However, the holding period of such stocks is rather large and the longer you hold, the more money you can make. We have picked a few stocks from the Sensex companies that we believe have a huge potential to make money for investors. However, we have also picked one stock from the non-Sensex companies, which we believe is one of the best long term stock bets in India.
This is another stock that is a great value pick at the current levels. The shares are quoting at a 1-year forward p/e of 13 times. The shares of Oil India give you a dividend of 4 per cent at the current market price of Rs 331. Should oil prices rally, the shares of Oil India could spike. The shares are quoting at a price to book value of 1.1 times. not a bad idea to accumulate into the stock on declines. Buy the stock from a long term perspective in mind. Check stock quote of Oil India here
Karur Vysya Bank
This is one of the relatively cheaper private sector banking stocks in the country. The NPAs of the bank have been well under control. The stock is available at a 1-year forward p/e of just 10 times, based on FY 2017-18 earnings. The shares are currently trading at Rs 91, which also gives a good dividend yield of 3 per cent. We do not see too much of asset deterioration worries for the bank in the coming days. A good long term stock idea. Check stock quote here
This has to be one of the best long term stocks to buy in India. Just take a look at the quarterly results of Reliance Industries for December 31, 2016. The net profit rose 3.6 per cent to Rs 7,506 crore in the December quarter as its petrochemicals business boomed. The additions to the Jio business continues to zoom and all of the expansions of the company are on track.
Great performance from retail, telecom
The retail business delivered strong PBDIT of Rs 333 crore in 3Q FY17 as against Rs 237 crore in the corresponding period of the previous year. During the quarter, Reliance Retail added 111 stores across various store concepts. Trends crossed a milestone of 300 stores during the quarter. At the end of the quarter, Reliance Retail operated 3,553 stores across 686 cities with an area of over 13.25 million square feet. The telecom business is soaring. Since its commencement of services on 5th September 2016, Jio has become the fastest growing technology company in the world. It crossed 50 million subscribers in just 83 days, adding at an average rate of 6 lakh subscribers per day.
Fundamentals and valuations
Reliance Industries reported an EPS of Rs 25 for the quarter ending December 31, 2016. The company should easily report an EPS of Rs 110 for FY 2017-18. The company's stock is trading at at a p/e of just 10 times, one year forward earnings and this is not expensive at all. At Rs 1047 the stock is not a bad bet given the fact that most of the stocks from Sensex companies are today trading at p/e multiples of 15 to 20 times. Check stock quote here
South Indian Bank
South Indian Bank is another stock that is a worthy pick at the current levels. The shares of the bank are trading at a p/e of just 10 times one year forward earnings. It also gives a good dividend yield of 3 per cent.
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