Markets are trading at peak levels and hence there is very little value that one can find. However, we have recommended a few stocks that may still be able to make some money and are great stock picks in India for 2018.
Here are a few of these which have the potential to give returns.
Shalby Ltd, runs several hospitals across India and is considered a solid player in knee replacement surgery. Last year, the company came out with an IPO at a price of Rs 248, with the shares currently trading at just Rs 148.
This is probably one of the cheapest hospitals chain stocks available in the country and let's see why. The company owns 11 hospitals with a bed capacity slightly in excess of 2,000 beds.
This hospital is probably among the only one in the listed space, that has reported double digit growth rates in 2018. Now, there are a number of reasons to buy the stock. Let us examine each of these.
Also read: Best small cap stocks to buy
1) Promoters hold a solid 78 per cent holding in the company.
2) The hospital had repaid debt and now remains virtually debt free.
3) Jaipur, Surat and Naroda units are operationalized recently, which should add to revenues in the coming years.
4) Net profit margins of the company have increased in 2018 to 11.16 per cent from 9.24 per cent and the trend is likely to persist.
5) The company is likely yo see further growth in the coming years, on account of select hospitals maturing, healthcare insurance, expansion that will add to hospitals and beds.
6) Healthcare industry may continue to see good discounting on the bourses.
7) Shares of Shalby are not very expensively priced and are available at a p/e of just 12 times one year forward earnings. This leaves potential for growth in the coming years.
The markets are trading at a historic peak and as such it would not be appropriate if we do not recommend a defensive stock in the portfolio. The Sensex at 37,600 points can frighten most investors.
The good thing about Coal India is that the shares are unlikely to fall in case there is a sudden market crash. This is largely on account of the dividend that the company pays.
But, that is not the only reason to be buying the stock of Coal India.
The company is likely to report a good set of numbers for the quarter ending June 30, 2018 on the back of solid growth in volumes. Sales volume has already gained11.2 per cent year-on-year.
International and domestic prices are also expected to remain firm, which should boost domestic profitability.
Coal India: Good on dividend yield
The wage hike, which has impacted profitability in the past, is also likely to be behind. Apart from this, the company is also having additional evacuation capability of 26 metric tonnes per annum at Jharsuguda & Tori sidings, which could drive volumes in the coming days.
The most interesting part about Coal India is the dividend yield that the company offers. Based on the dividend declared last year, the shares are available at a dividend yield of 7.5 per cent.
However, we do anticipate that the company will declare an even better dividend this year. Buy Coal India, for regular dividends and price appreciation.This is a good defensive stock to have on one's portfolio.
Balrampur Chini Mills
Shares in Balrampur Chini Mills have fallen from levels of Rs 170 to the current levels of Rs 63.40. The problem right now for sugar companies is that sugar prices have come crashing down.
This is likely to impact the performance of companies like Balrampur Chini Mills. However, the company has some hedge in the form of its distellery unit and saleable power co-generation capacity of 163.20 megawatts.
The Company's 10 factories in Uttar Pradesh possess an aggregate cane crushing capacity of 76,500 tonnes per day. The company has managed to reduce its interest costs over the years, which is a big positive.
In fact, the company has no major capex in pipeline
At some stage, sugar prices should rally as demand and supply maintain an equilibrum. A good stock to buy for the long-term in India.
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