3 Stocks To Buy For Good Dividend Yields & Bright Growth Prospects

ICICI Securities: Good stock to buy for valuations and dividends

ICICI Securities is a top retail and institutional broking firm, with other financial activities as well. The board of the company is slated to meet later this month to declare quarterly results on July 21, 2022 for the first quarter of this financial year. We believe that ICICI Securities has tremendous growth opportunities in the future and the valuations too are attractive.

To begin with, the stock has fallen from levels of Rs 895 to the current levels of Rs 421. The stock has more than halved from 52-week lows. This has resulted in the fundamentals turning very attractive for the stock. The shares are now trading at a p/e of just 9.78 times, which is not bad for a company that has a strong pedigree. The stock is also available with a final dividend of Rs 12.75 per share. The dividend yield on the stock for last year was about 5.65%. We believe the shares of the company have the potential to rally as interest in the stock markets continue to surge, helping the brokerage income.

 

Gulf Oil Lubricants: Stock to buy for a strong upside

This company is a top player in the lubricants business in India. This is another stock that has dived in the market carnage. The company' shares have fallen from levels of Rs 687 to Rs 409. Again, the fall in the stock has made valuations for the stock extremely attractive. The shares are trading at a p/e of just 9.35 times trailing p/e and around 1.89 times book value. We do not see any massive structural change in the business environment for the stock to have fallen. In fact, we believe the fall has largely to do with present market conditions more than anything else. Overall, the stock is also cheap in terms of valuations. Gulf Oil Lubricants gives a dividend yield of around 4%, which is pretty decent. Going forward as the markets rebound we would see stocks like Gulf Oil Lubricants offering decent upside moves. With economic recovery gathering steam, we believe the company is slated to benefit from the upturn in both industrial and automotive lubricant segments.

Oracle Financial Services

The shares of the company offer a dividend yield of around 6% at the current market price of Rs 3144. The sharp depreciation in the rupee is also likely to benefit a company like Oracle Financial Services. The stock has fallen from levels of Rs 5144 to the current levels, thus making the shares extremely attractive. Investors who have a long-term perspective in mind can buy the shares. The company is into banking and insurance software and we do not see a slowdown in services for the same. In fact, the company has contract with major players in the industry. We believe that the stock has a decent upside potential from the current levels and is cheap when compared to its 52-week high and most of the other peers. In fact, the stock is trading at a p/e of 14 times, which is not very expensive. Buy the stock for a decent upside in the short to medium term.