Monsoon investment tips: These two stocks may make you rich this season
Currently seasonal factors are playing a major role - apart from political and economic factors in India and globally.
At present, Indian markets have taken a bearish mode with investors continuously making profit-booking in their favourite stocks. The Sensex and Nifty, which in May this year recorded all-time highs of over 40,000 and 12,000-marks respectively, has given away their gains and are now below 37,200 and 11,000-levels. Last week on Friday, the Sensex finished at 37,118.22 up by 99.90 points or 0.27% while the Nifty 50 wrapped-up at 10,997.35. A point of note is that, when markets are bearish, it also opens the gate for investing in value stocks as they become cheaper to buy. Currently, seasonal factors are playing a major role - apart from political and economic factors in India and globally. With that, monsoon could be the real game-changer for making most of the equities on exchanges.
A Moneywise research note carried by SMC said RBI is scheduled to meet next week and there is an expectation that the central bank will go for another rate cut to boost consumption demand in the decelerating economy. Going forward, the progress of monsoon, Crude oil prices, Rupee movement, foreign fund inflow/outflow and global factors will dictate the direction of the market.
The SMC note points out one can take advantage of bearish market with the progress in monsoon. The note pointed out that these two stocks are worth investing
Tata Consultancy Services (TCS):
TCS’s predictable cash flow generation, strong revenue momentum, stable margins, right balance sheet, stickiness of clients will help them to maintain its premium valuations. Amidst pricing pressure & other supply side headwinds TCS has been able to maintain superior margins. Thus it is expected that the stock will see a price target of Rs. 2436 in 8-10 months time frame on the PE multiple of 27 times and FY20E EPS of Rs. 90.21.
United Spirits:
The company will continue to benefit from its strong parentage, established brand equity, favourable long-term volume outlook for the spirits industry combined with changing consumer preferences towards premium brands. Substantial growth in revenue and profitability strengthen the financial risk profile of the company. Demand prospects seem very exciting from a medium to long term perspective. Thus it is expected that the stock will see a price target of Rs.648 in 8-10 months time frame on the PE multiple of 55 times and FY20E EPS of Rs. 11.79.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:44 PM IST