Hello everyone, i am again back with a new post to discuss on few selected Undervalued stocks you can pick in 2018. Even at present levels, i think these three have potential to multifold your investment money in next one year.
At present, rcom is going through Debt resolution plan. Recently, Rcom has confirmed that it will now sell its wireless assets to Jio which is good for company. However, after being selling its assets and almost exit from retail business, company will left with very small businesses. After which I think reasonable value of rcom is between around Rs 50–60. Credit Suisse had also estimated new rcom value around 15,000 crore which is also around Rs 55. But as the company would become almost debt free and have higher growth opportunities ( company is planning to strengthen its businesses in IT services i.e Cloud and DataBase ), I think we could see some great buying in stock in 2018.
Videocon is among the top brands in India famous for its quality products and trust. Company produces majority of its revenue from retail business. However, recent occurred issues with its debt taken from Indian lenders has felt company into some problem. Maybe, company could even pass through NCLT in short-term. But the positive thing in this ongoing problem is that company has enough assets to resolve this issue easily.
Videocon is now focusing on high marginal businesses. Recently, company has entered into security survices through its Wallcam brand. I think in next 1–2 years, we can see some improvement in company which would directly reflect in its stock price which is around Rs 25.
Punjlloyd is among the top smallcap infrastructure company having presence in Defence sector also. Company works on different types of projects. It also holds some part of Medanta Hospital. But due to business is not in the position of earning profit despite of great revenue number, stock is consolidating within a small range from last many years. Where Punjlloyd works is expected to see a great Growth in next 10 years. Infrastructure sector and its stock is among the top best picks for next few years. And Punjlloyd which is also from Infrastructure segment is available to buy at very cheap rate.
Whenever, the company would turn into profitibale, we will probably see a multifold buying in stock which even could lift the stock to Rs 100. Therefore, I feel Punjlloyd could be a great option to hold in your portfolio.
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