Low valuations, better prospects

The Federal Bank management in a recent interview sounded extremely bullish on prospects for 2016-17. The bank is trading at a p/e ratio of under 10 times, with NPAs, much better than even some of the biggest private sector banks.

The dividend yield is a decent 4 per cent. At the current market price of Rs 49, it is a good pick from a 1 year perspective.

A price collapse

Sintex Industries has seen its price collapse from Rs 144, to the current levels of Rs 72. The fall in the stock has made the p/e extremely attractive at just 6 times, one year forward earnings.

The price to book is at just 0.79 times trailing book value. A good pick from a one year perspective.

Super dividend yield

NMDC is again an excellent pick with a dividend yield of around 8 per cent, which is better than bank deposit rates.  The stock has recently rallied from 78 to Rs 90. The company is a cash rich dividend paying company.

Though it has fallen recently on a fall in commodity prices, it remains a good pick at the current levels, purely on the basis of its dividend yield. 

Slightly risky bet

Syndicate Bank has reported a poor non performing assets figure like most other PSU banks. However, the bank's performance has been much better than most peers. The stock has crashed to levels of Rs 55, at which it could be an interesting pick from a 1-2 year perspective. The stock can gain once there is a rebound in economic activity.

However, it remains a risky bet like most other government owned banks.

Can generate good returns

NHPC is trading at Rs 20, offers a dividend yield of nearly 3 per cent, and is available at 0.80 times book value.

Has the potential to generate good returns from a 1-year perspective.

A decent pick

Karnataka Bank is again a superb play on dividend yield, which works to 5.40 per cent. The stock is very near to its 52-week low price of Rs 88. Scope for a downside looks limited at the moment from the current price of Rs 92.

Great prospects

This is again a stock that has been heavily beaten down. At Rs 46, the stock is barely trading at 8 times one year forward multiples. Looks attractive, if there is an uptick in the economy.

Disclaimer: All the stocks recommended in this article is strictly for informational purposes only. It is not a solicitation to buy, sell in the securities or other financial instruments. 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.