In a chat with Anil Singhvi, analyst Vikas Sethi picks GSK Pharma, Philips Carbon for bumper gains - check target here

Top Stocks to Buy with Anil Singhvi - In a conversation with Zee Business Managing Editor Anil Singhvi, market analyst Vikas Sethi picks two stocks from cash market for bumper returns with respect to short term view. Know which stocks are these and why they would earn handsome returns on a short term basis. 

Stocks to Buy - GSK Pharma 

The market analyst picks GlaxoSmithKline Pharma, a UK-based multinational company, for the target of Rs 1575 per share with a stop-loss of Rs 1495 per share in a short-term view. The shares of GSK Pharma closed at Rs 1500 per share levels. 

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A leading pharma company is a global powerhouse in vaccine making, it has manufactured over 30 vaccines across 60 countries in the world, Sethi says. The company, in December-ended quarter, reported a profit of Rs 156 crore as compared to a loss of Rs 661 crore year-on-year basis. 

Stating that GSK’s fundamentals are quite good, Sethi points out the company’s return on equity is at 20 per cent; return on capital employed is at 26.6 per cent. GSK Pharma is a zero debt company with around 75 per cent of promoters shareholding. 

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Stocks to Buy - Philips Carbon 

In his second pick, Sethi chooses RP Sanjiv Goenka-owned Philips Carbon for short-term gains of Rs 220 per share with a stop-loss of Rs 195 a piece. On Friday, the stock closed at Rs 207 per share level. 

Philips Carbon is India’s biggest carbon black manufacturer company with a business in 33 countries and it also into the business of power generation, the analyst says. 

The company has recently made an aggressive brownfield expansion in speciality grade carbon black, which has been operation since February 2021, Sethi adds further. This speciality grade carbon black is used in fibre, plastic, coating and cables, he said. 

The company is also into a greenfield expansion in Tamil Nadu, which will be operational soon. The company gave a dividend of Rs 7, PE is at 13x and return on equity at 17 per cent, says Sethi. 

The company, in the March-ended quarter, reported a growth of 75 per cent in profit to Rs 127 crores as compared to Rs 72 crore in the same quarter last year.