Markets are not exactly cheap at the moment and it is difficult to find stocks that are good long term bets, as well as stocks that are low priced. Here are a few stocks that could be great buying opportunities in India at the current levels. They are low priced stocks that may not have a face value of Rs 10, though are inexpensive.
Welspun India is the world's second largest terry towel producer in the world. It is also among the top three home textile manufacturers in the world and the largest home textile company in Asia. The company supplies to to 17 of the top 30 global retailers across the wold including names like Bed Bath and Beyond, Macy's, Wal-Mart and JC Penney among others. 34% of FY16 sales of the company came from innovative products and 13% of FY16 sales from branded products. The promoters continue to have a solid holding of more than 73 per cent in the company.
Huge potential for growth in Welspun India
The company has a key market in the US, whose home textile market alone is worth $45 billion. India has some advantage in the export markets vis a vis markets like China on account of being the largest exporter of cotton and also having a 25 per cent surplus cotton, which is exported. All these play to the advantage of Welspun, which has a very large share in the terry towel market across the globe. In fact, India's share in the towel business has increased 10 per cent in the last 6 years.
Welspun India: Excellent low prices stock with good fundamentals
In the next few years, the company's flooring business which was recently set up will start driving growth, which should be a big positive. For the quarter ending December 31, 2017, the company reported an EPS of Rs 1.5, with a net profit of Rs 154.94crores. If we assume that it reports an EPS of Rs 10 next year (2017-18), the stock is not heavily priced at a p/e of just 7 times one year forward. A great low priced stock to buy at the current p/e levels. Check stock quote of Welspun here
The biggest trigger for this stock is that its subsidiary Nakshatra World has filed for an IPO. According to some unconfirmed numbers the company would raise Rs 650 crores. Nakshatra sells jewellery under the established brands of Nakshatra, Gili, Asmi, Sangini, Diya, Parineeta and Rivaaz. Gitanjali's own network of own stores, shop-in-shops and franchise outlets spans across 200 cities and 3,000 points of sale. We believe that going forward this company could improve its performance and the share price move higher.
Low priced stock at low valuations and less risk
The company has already reported an EPS of Rs 5 for the first three quarters and even if it does an EPS of Rs 6-7, the p/e of the company is barely 10 times. Gitanjali is planning to reduce debt and start the de-leveraging exercise. this should make it a great low priced stock to buy in India.
South Indian Bank
This is one banking stock that has not seen a great rally. We believe that in the coming quarters the bank will improve its non performing assets a great deal. In fact, the stock is trading at a p/e of just about 7 times one year forward earnings. At Rs 20, there is nothing much to lose in South Indian Bank stock. Buy on declines this low prices banking stock.
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