Here are a few value stock picks in India. These stocks have to be held for the long term and can generate good wealth in a period of 3-5 years. A few of the brokerages are bullish on these stocks and have recommended them as value picks.
Alkyl Amines
Brokerage firm K R Choksey is bullish on the stock of Alkyl Amines. The company is one of the top producers of aliphatic amines and amine derivatives. The research firms sees capacity expansion and the ability to sustain high margins as factors that would boost earnings.
"Going forward, with the company's plan to augment its capacity for methylamines and acetonitrile coupled with anticipation of a turnaround in pharma industry and agrochemical industry, we expect the revenue, EBITDA and profit after tax to grow at 20.3 per cent 23.7 per cent and 26.7 per cent, CAGR over FY 17-FY 20 (estimated).
Additionally, with management's constant focus on higher amines derivatives segment and specialty segment, we expect EBITDA/PAT margins to rise steadily," K R Choksey has said in its report.
The firm has assigned a p/e of 15times to arrive at a price target of Rs 762 on the stock. Alkyl Amines maybe a good value pick for your portfolio. Check stock quote of Alkly Amines
Engineers India
GEPL has placed a buy call on the stock of Engineers India. "We believe that strong order inflow will help Engineers India (EIL) to grow in the near future.
The consultancy business have higher operating margins as compared to the turnkey projects that will also help to grow operating efficiency front. This will also make a business structure more robust and will fetch higher profitability," the firm has said.
"At current market price of Rs 181.5, Engineers India is trading at 37.1x its FY17 EPS of Rs 4.9 which is at an attractive valuation.
With strong margin improvement and strong return ratios, we expect stock to trade at 32.2x its FY19 estimated EPS of Rs 7.06. We assign a BUY rating on the stock with a price target of Rs 227which is more than 25% upside from current levels," the firm has said in its research report.
D B Corp
Motilal Oswal has placed a buy call on DB Corp with a price target of Rs 430. "We expect ad/circulation revenue CAGR of 7 per cent and 9 per cent over FY17-20, led by an improving ad market and an increase in the number of circulation copies at healthy pricing.
State elections in its legacy markets next year and the general election in 2019 should support growth. Motilal Oswal expects EBITDA/PAT CAGR of 9 per cent to 14 per cent over FY17-20 (estimated).
"DBCL trades at 14.2x P/E on FY19E. We maintain our Buy rating, assigning 17x P/E on FY19E (at a 6% discount to 3-5 year average P/E of 18x), and arrive at a target price of Rs 430" the firm has said. Check stock quote of DB Corp here
Yes Bank
Yes Bank is not a very expensive bank in terms of price to earnings. The stock has now been shifted to the BSE Sensex and would be a part of the same from Dec 18.
This is one of the fastest growing larger private sector banks in the country, which is trading at a p/e of just 18 times one year forward earnings. With 20 per cent growth in net profits anticipated in the next few years, the stock should be a great value pick at the current levels.
Disclaimer
This article is strictly for informational purposes only. It is not a solicitation to buy, sell in 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.
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