2 Stocks To Buy That Could Be Great Value Picks For Long-Term Investors

The Sensex is trading near the 59,000 points levels and according to analysts the markets are fairly valued, which neither makes them cheap not expensive. Here are 2 stocks that could be great value picks for those looking at holding for a period of 2-3 years.

Castrol India

Castrol India is a leading player in the lubricants business, with a solid market share in the automotive space. There are a few things that make the stock of Castrol India an interesting pick at the current levels. The first is that the company is an MNC, with a management that has a proven track record. The second is that the company has a solid dividend yield of over 5% considering the last year's dividend.

In fact, if the company enhances the dividend, the yield would be pretty good. For the quarter ending Dec 31, 2021, Castrol India performed reasonable well, with revenues of Rs 1090 crores and net profits of Rs 188 crores. The EPS for the quarter ending Dec 2021 was placed at Rs 1.91. Now, even if the company does an EPS of Rs 10 in 2022-23, considering that there would be no covid disruptions to business, the stock is trading at just 11 times one year forward eps. The shares of Castrol India at the current market price of Rs 106 look pretty decent stock to buy.

Bajaj Consumer Care stock price

This is another stock that we like for its dividend yield and valuations. Bajaj Consumer manufactures a range of hair oil, including the popular Bajaj Almond Drops, Bajaj Brahmi etc. The company is the leading player in Light Hair Oil category with the flagship brand Bajaj Almond Drops Hair Oil commanding more than 60%+ market share in its category. The company also manufactures Hair Oils, Hair Serum, Hair conditioning mask, Face cream, Face soap, Face scrub and Sanitisers under various brands.

The company saw a subdued performance for the quarter ending Dec 31, 2021, wherein the net profits were at Rs 40 crores, on a revenue of Rs 228 crores. We believe that 2022-23 would be a much better year for the company.

Bajaj Consumer Care

Bajaj Consumer Care is also reasonably valued, considering its strong brand, as well as good dividend yields. For the year ending March 2021, Bajaj Consumer Care declared an equity dividend of 1000.00% amounting to Rs 10 per share. At the current share price of Rs 180.95 this results in a dividend yield of 5.53%.

This is excellent considering where bank interest rates are today. The stock is also trading at a p/e of around 20 times, which is not expensive for an FMCG company considering its strong brands. The company is expanding its hair oils portfolio in addition to launching two premium digital first brands across hair and skin care range, which should add to revenues and profitability in the coming quarters. Buy the stock if you are a long-term investor.