If you are new to investing you do not want to begin the investing journey with high risk high beta stocks, that can result in losses. There have been many beginners to stock investing in India, who have invested money and never recovered that money. Once the disappointment sets in, you do not want to ever invest again. So, a good idea would be to stay focussed on quality stocks, which are not very high beta and have sound fundamentals.
Beginners to investing must look at safe haven stocks. Here are a few that can offer you good dividends and excellent protection.
Motilal Oswal has recommended buying the stock of Godrej Consumer.
The firm believes that a few other pieces have also fallen into place in recent years, namely a) moratorium on big ticket acquisitions and far better capital allocation in recent years; b) sale of the UK business, potential sale of the LatAm business, appointment of Mr. Dharnesh Gordhon as GCPL's Africa business head; and c) tailwinds in Soaps and the broader Personal Wash category, leading to higher growth and premiumization, which had proved elusive in this category over the last decade.
"We have seen transformative changes on all these fronts in the past with companies like Britannia and Nestle. There are no changes to our modest earnings growth forecasts of of 8%/16% in FY22E/FY23E as we await the path to growth that the new CEO unveils when he joins in Oct'21. Valuing Godrej Consumer at 45 times Jun'23E EPS (40x Mar'23E earlier), we arrive at our target price of Rs 1,020, a 19% upside to its current market price," the broking firm has said.
This is another safe stock for beginners, who are new to investing. Broking firm Motilal Oswal has a buy on the stock, which is currently available at Rs 242.
The company announced a final dividend of Rs 3.5/share (in addition to an interim dividend of Rs 8) - totaling Rs 11.5 per share. This translates to a dividend payout of 60% and dividend yield of 4.6% for FY21.
Petronet LNG's EBITDA rose 18% YoY to Rs 47 billion due to one-offs (inventory and trading gains in 3QFY21). Profit after tax was up 9% YoY to Rs 29.5 billion.
Total Volumes rise at Petronet LNG
Total volumes at Petronet LNG were flat YoY at 218tbtu (-7% QoQ). The Dahej/Kochi utilization at 92%/22%, both flat YoY. EBITDA came in at Rs 10.9b (+56% YoY - due to higher operational expenditure in 4QFY20).Net profits stood at Rs 6.2 billion (16% lower than estimates made by Motilal Oswal).
Volumes were down a mere 3% at 897tbtu in FY21, despite the COVID 19 impact. Utilization in Dahej/Kochi stood at 96%/19% (v/s 104%/17% in FY20).
The shares of Petronet LNG were last seen trading at Rs 241, and Motilal Oswal has a buy rating on the shares. A good stock for beginners to buy.
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