Hello everyone, recently when I was finding something on stock, I found three stock where I think valuations are very attractive. In these three stocks, probably, we could see some good buying in next 2–3 months. And therefore, i choosed to share these with all of you also. These three are
Glenmark is one of the best know company in Pharmaceutical sector. Last year, Pharmaceutical stocks faced some selling pressure despite of growing equity markets. Pricing pressure in US Market, issues with USFDA approval etc were among the top reason for that pressure.
However, not from growth opportunity view, i think this stock could be a good option from potential point of view. Currently, stock is quoting around Rs 590 with a P/E ratio of 10 and price/book ratio of 1.78 which looks attractive. In this consolidation period of pharma sector, I feel Glenmark Pharma is a good option to buy for short-term. Therefore for next 2–3 months, one can try to buy or hold Glenmark Pharma for a target of Rs 720–750 which implements potential upside of 20–25 percent.
Reliance Infra is a flagship company of Reliance ADAG group. R Infra handles no. of projects in india including metro station, power transmission business, EPC projects etc. Recently, company had decided to sell its Mumbai transmission business to Adani Group for over 10k crore which will help company to completely clear their debt.
Reliance Infra stock is currently quoting with a Price/Book ratio of 0.70 and P/E ratio of around 9. Quarterly, revenue of company stands over Rs 5k crore and at the same time, market capital of company is around just Rs 15k crore. In recent weeks, Deal with Jio has boosted share price of Rcom which is positive for overall group. Therefore, I think at present levels, risk level in R Infra is very less. These all things makes R Infra a attractive stock to buy for short-term. I think for next few months, one can try to buy this stock for a target of Rs 820.
Indiabulls Housing Finance
Indiabulls is among the top know brands in the field of Real Estate Business in india. Housing Finance business of group holds a major position in the Home Loan sector. In last few years, company has achieved a great growth. For the quarter ended September 2017, company had posted a profit of Rs 800 crore supported by revenue of around Rs 3k crore.
Currently, P/E Ratio of Stock stands around 16 with a book value multiple of 4.5. Current market capital of company is around Rs 50k crore which in against of Rs 800 crore quarterly profit looks attractive. Fundamentals of company are also great. And at present levels, I think stock has potential to show level Rs 1450–1500 possible in next few months. Therefore, as a safe pick from large caps, investors can try to hold this stock for short-term.
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