In announcing the Gems, we have tried to create a balanced portfolio of stable and aggressive stocks.
Hero Motorcorp and Kitex as more aggressive and NHPC Coal India & RECL will rise on a firm ground.
Gem 1
Coal India Ltd
CMP 146.60
- Market Cap: ₹ 90,192 Cr.
- High / Low: ₹ 165 / 110
- Stock P/E: 6.54
- Book Value: ₹ 59.3
- Dividend Yield: 10.9 %
- ROCE: 46.1 %
- ROE: 37.0 %
- Face Value: ₹ 10.0
Near term uptrend likely over the next few months due to Baltic Index and QE Taper may firm USD thereafter.
- INVEST
CMP 146.60
TARGET:
208 for 3 months, SL 122
Gem 2
REC Ltd
CMP 154.30
- Market Cap: ₹ 30,463 Cr.
- High / Low: ₹ 168 / 91.8
- Stock P/E: 3.46
- Book Value: ₹ 219
- Dividend Yield: 8.24 %
- ROCE: 9.29 %
- ROE: 21.3 %
- Face Value: ₹ 10.0
It is undervalued since long and now ready to rise.
INVEST CMP 154.30
Target: 193 2-3mths
GEM 3
NHPC Limited
CMP 27.65
- Market Cap: ₹ 27,825 Cr.
- High / Low: ₹ 28.6 / 19.6
- Stock P/E: 8.20
- Book Value: ₹ 32.9
- Dividend Yield: 5.78 %
- ROCE: 9.70 %
- ROE: 10.5 %
- Face Value: ₹ 10.0
Another stock to pile on soon for short term.
Invest CMP 27.65
Target: 36, 2-3 months
Gem 4
Kitex Garments Limited
CMP 171.00
- Market Cap: ₹ 1,138 Cr.
- High / Low: ₹ 224 / 91.2
- Stock P/E: 18.3
- Book Value: ₹ 105
- Dividend Yield: 0.88 %
- ROCE: 11.4 %
- ROE: 8.12 %
- Face Value: ₹ 1.00
US Markets are 74% of its business
Firm USD + QE taper and normalcy post pandemic could help.
Invest CMP 171.00
Target: 262 2-3 months
Gem 5
Hero Motocorp Ltd
CMP 2799.00
- Market Cap: ₹ 55,931 Cr.
- Current Price: ₹ 2,799
- High / Low: ₹ 3,629 / 2,636
- Stock P/E: 18.0
- Book Value: ₹ 772
- Dividend Yield: 3.21 %
- ROCE: 24.2 %
- ROE: 18.7 %
- Face Value: ₹ 2.00
It’s time now to be better valued by even 50% more.
INVEST CMP 2799.00
Target:
3230 2-3 months
3856 5-6 months
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