Markets are trading near peak levels. One has to be cautious before deploying large amounts of money. Here are stocks that are priced below Rs 100 and look attractive for investing for the long term.
This stock has fallen from levels of Rs 116 to the current levels of Rs 54. In fact, the share price has almost halved from 52-week highs.
Jagran is one of the top players in the newspaper business and publishes Dainik Jagran, which is the number one circulated newspaper in the country. It also owns the radio business, and mid-day which is Mumbai's leading evening daily.
The stock even at the current rate is giving a dividend yield of 6.75 per cent. For the quarter ended Sept 30, 2019, the company did an EPS of around Rs 3.25. The company can achieve an EPS of around 12 for FY-2019-20. This takes the p/e to less than 5 times, which makes the stock extremely attractive. The shares are also traded at a price to book of just 1.21 times, which makes them attractive.
Karnataka Bank is another stock that could be an attractive bet, especially if we see a strong recovery in the economy. The shares of the bank are trading very close to a 52-week low around the 73 mark.
The price to book of the stock is just 0.39 times, which is very low for a private sector bank. The dividend yield on the shares is also 4.73 per cent, which is very attractive. The share of the bank are trading at a p/e of just 8 times, one year forward earnings, which makes it attractive.
We believe that as and when the economy recovers, we could see a sharp recovery in the stock, which is why it could be a good bet at the current levels. It's also possible that the bank may not see a sharp deterioration in the asset quality from the current levels.
Though GAIL is not really below Rs 100 stock, if you are likely to invest a little higher, this stock could also be attractive. Following its results for the quarter ending Sept 30, 2019, the shares of the company have fallen dramatically.
At the current levels, the dividend yield on the stock is close to 6 per cent. It is unlikely that the company will cut its dividend too much, as there could be a pressure from the government for higher dividends.
GAIL managed to report an EPS of Rs 2.5 for the quarter ending Sept 30, 2019, and the results were dismal. We do not expect the trend to continue into the next few quarters.
An EPS of 13 is possible for 2019-20, which makes the stock cheap at a valuation of less than 10 times.
The share are also attractively priced at a price to book of just about 1.21 times.
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