Stocks To Buy Next Week As Markets Expected To Surge

Markets are expected to rally next week, at least on Monday, as the US markets were extremely strong on Friday, rallying as much as 2.5% for the S&5 500 and the Dow Jones. This may lead to sharp gains on Monday for Asian markets, including India. Here are a few stocks you could buy for next week.

Kalyani Steels

The share price earlier this week plunged to a 52-week low of Rs 265, as against the current market price of Rs 285. This means the stock is not very far away from the week low.

The company has an integrated steel plant to manufacture carbon and alloy steels, with three Mini Blast Furnaces, two Rolling Mills, Sinter Plant, Power Plant, BFG fired re-heating furnaces, state-of-the-art testing facilities.

Among the company's clientele include a number of Indian and international component manufacturers for commercial vehicles, two wheelers, diesel engines, bearings, tractors, turbines and rail.

Kalyani Steels: Cheap on the valuations front

The shares of Kalyani Steels are cheap in terms of valuations. For the nine-month period ending Dec 31, 2021, the company reported revenues of Rs 12393 million, with a net profit of Rs 601 million. For the nine month period ending Dec 31, 2021, the EPS is near the Rs 40 mark. With the covid issue now longer visible the company can easily do an EPS of Rs 10 for the last quarter taking the EPS to Rs 50 for FY 2021-22. Now, if you see the current market price of Rs 289, the stock is barely discounted 6 times the EPS. This is extremely cheap for a company that is likely to grow, given that there is a healthy economic turnaround that is happening. Buy the stock for good long term gains.

Gulf Oil Lubricants

Gulf Oil Lubricants is one of the leading players in the lubricants segment, both, automotive and industrial. The stock of Gulf Oil Lubricants has been on a consistent decline over the last few trading sessions. The stock has now halved from peak levels of Rs 827 to the current levels of 427. At these levels the stock becomes extremely attractive for its dividend yields, as well as fundamentals. The company had recently announced a buyback of shares at a price of Rs 600 per share.

In terms of financial performance as well, the company has done reasonable well for the last few quarters. For the quarter ending Dec 31, 2021, the Gulf Oil reported revenues of Rs 601 crores and net profits of Rs 58 crores translating to an EPS of Rs 11.63.

We believe that with covid out of the way, Gulf Oil can do an EPS of Rs 50 for FY 2022-23, thus taking the p/e to just around 8.5 times, as the current market price. Apart from this, the stock is also available at a dividend yield of nearly 4%. Buy the stock for goof long term returns.

Disclaimer

Greynium Information Technologies Pvt Ltd and the author are not responsible for any losses based on a decision taken after reading this article. Please exercise caution as markets are highly volatile.