What are your top picks for our viewers which they can look at in Samvat 2079?
As far as my Diwali picks are concerned, I have chosen two midcap ideas. The first stock which I like at the current levels is Poonawalla Fincorp. Fundamentally, it is a great company. It used to be earlier known as Magma Fincorp and this was later acquired by Mr Adar Poonawalla of the Serum Institute fame and ever since then the company had shown tremendous growth.
It is a very strong NBFC, the management is very aggressive and they are nowadays focussing on retail where you see very less NPAs and tremendous growth and ever since the new management has taken over this company, their cost of funds have come down from close to 9% to 6%. Their capital adequacy ratio is at 40% and I see tremendous opportunity for this company going ahead.
I remain bullish on this and the June quarter was excellent and coincidentally this September quarter results are due tomorrow and I am expecting a very good set of numbers looking at the updates which they have recently given. I am bullish on the stock and I would advise investors to buy into this stock at the current levels with a target of Rs 450 in about a year’s time.
One can expect Rs 8,000-9,000 crore worth of orders in the next say two to three years so that is one part and secondly they are also into other kind of projects which they do for environment friendly energy like biofuel, biogas and they have also been able to set up 2G technology based ethanol projects whereby parali which is a big concern in north India, the rice straw, paddy straw they can convert that into ethanol and they have set up a plant for IOC in Bathinda recently.
That would also present a very big opportunity, fundamentals are great, the company has already come out with its September quarter results. The results were excellent and after that we have seen some profit booking and the stock has come to pretty reasonable levels. One should buy into the stock at the current levels with the target of Rs 550 in about a year’s time.
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Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price