In chat with Anil Singhvi, analyst Vikas Sethi picks Cigniti Technologies and Federal Mogul, for bumper returns

In chat with Zee Business Managing Editor Anil Singhvi, Market Analyst Vikas Sethi today recommended two stocks – both from Cash Market. He said that both the stocks have tremendous potential and will give bumper returns to the investors. The stocks have been recommended in the popular TV show ‘Sadabahar Sethi Saab’

1st Cash Pick: Cigniti Technologies

Talking about his first pick, Vikas Sethi said that Cigniti is World’s Premier Independent Software Testing Company. Cigniti with its wide array of Quality Engineering and Digital Assurance solutions had worked with and served several of the fortune 500 and Global 2000 companies across 13 countries. This is a small company and the market cap of the company is also small. Valuations of the company are low and it is trading at valuation of 10. Return on Equity is 45% and debt equity ratio is 0.31. The company is coming with results today. The stock should be bought with a target of Rs 425 and stop-loss of Rs 395. He said the stock can see levels of Rs 450 by next week.

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2nd Cash Pick: Federal Mogul

सदाबहार सेठी सा'ब: विकास सेठी से जानिए शॉर्ट टर्म में दमदार रिटर्न के लिए कैश मार्केट के 2 बेहतरीन स्टॉक्स@AnilSinghvi_ @vikassethi_SF pic.twitter.com/tFvacFHSOn

— Zee Business (@ZeeBusiness) April 29, 2021

This is an MNC auto company. The OFS of the company came 2 to 3 days ago and it has received strong response from Investors. The company Manufactures world-class pistons, piston rings, sintered parts and cylinder liners covering a wide range of applications including two/three-wheelers, cars, SUVs, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines. Federal-Mogul is the largest manufacturer of pistons and piston rings in India. The market cap of the company is Rs 1600 cr. The fundamentals of the company are extremely strong. Q3 FY21 results were extremely strong and it is a zero debt company. Promoters will be offloading 20% stake to bring down their holdings to 75% from 95%. The target price on the stock is Rs 305, stop-loss Rs 275