Markets are trading just 6 per cent away from their 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.
Hindustan Media Ventures
Hindustan Media Ventures is one of the leading print media companies engaged in the country, which prints and circulates ‘Hindustan', the second largest newspaper daily in India based on total readership.
The company also publishes two Hindi magazines ‘Nandan' and ‘Kadambin'.
'Hindustan' is the No 1 newspaper in Bihar, Jharkhand and Uttarakhand, while it is the No 2 in Delhi and Uttar Pradesh.
The stock is one of the fundamentally most undervalued stock, which is one of the reasons to be recommending to buy the stock. In fact, the share price of the company is now at Rs 229, which is very close to its 52-week low of Rs 219.
Hindustan Media: Reasonable performance
The near term strategies of HMVL include better cover price realisation, better monetization of copies through higher yield and a focus on augmenting volumes.
For the quarter ending Dec 31, 2017, the company reported a rise in income from operations to Rs 230 crores, as against Rs 210 crores in the previous quarter ending Sept 30, 2017.
The EPS of the company for the quarter was Rs 5.33. HMVL may end the year 2018-19 with an EPS of Rs 24, making the stock available at a p/e of just 9 times.
This is not bad for a media company which has solid cash on its books and has leadership status in key markets.
With election in large states round the corner and central government elections in the next one year or so, advertisement spends are likely to increase benefiting the company immensely.
This is a more direct play on crude oil. As long as crude oil prices are at low, HPCL would continue to fire. The stock has recently fallen from levels of Rs 490 to Rs 366.
The one reason to be recommending the stock is the huge dividend yields that it offers. In fact, we believe that it is highly possible that one gets a dividend of close to 6 per cent on the stock in 2018.
The company has recently declared a dividend of 145% and is available on cum dividend basis.
The shares are trading at multiples close to 10 times 2018-19 EPS. However, we wish to emphasize that if crude prices remain robust than it is highly possible that we may see a downside risk on the stock.
Many analysts are worried that crude could go higher. Beyond a point, it is highly possible that the rally would not last given output from shale, which would put pressure on prices all over again.
Also read: Best small cap stocks to buy
KMC Speciality Hospitals
KMC Speciality Hospitals runs a chain of hospitals including those in Chennai, Tiruchirapalli, Hosur, Karaikudi, Salem etc.
Some of the hospitals provide full fledged services catering to a very wide array of needs and requirements in healthcare.
The company over the next few years is likely to benefit from the growing healthcare needs of patients as well as value addition. The company runs 1200 plus beds across all its centres.
Kauvery Hospital deploys the Avant-Grade technology, especially in diagnostics and remedial care in heart diseases, transplantation, vascular and neurosciences medicine.
KMC Hospitals: Reasonably valued
For the quarter ending Dec 31, 2017 the company reported a decent performance. The net profits at the company nearly doubled to Rs 2.01 crores from Rs 1.29 crores in the quarter ending Dec 31, 2016, 2016.
Revenues at the company was Rs 19.37 crores. We expect the hospital to continue to show good growth in the coming quarters.
The hospital can report an EPS of Re 1 by 2019-20. Hospital stocks generally get a very high p/e multiple of 40 to 50 times. If we apply the same for KMC Speciality, the stock should trade at Rs 40 at the very least in the coming years.
At the current price of Rs 21, the stock is not a bad bet. The shares of the company are traded on the BSE only.
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