Stocks to buy: Looking for cash market stocks? Expert Vikas Sethi suggests two with strong fundamentals

In conversation with Zee business Managing Editor Anil Singhvi, market expert Vikas Sethi advised to invest in two fundamentally sound stocks- West Coast Paper Mills Ltd and Ponni Sugar (Erode) Ltd.

A piece of positive news for paper companies, the environment minister announced the ban on single-use plastics, said Sethi.

West Coast Paper Mills Ltd was trading at Rs 325 at the time of recommendation of the stock with a market capitalisation of Rs 2100 crore. The company has 72.2% stake in Andhra Papers Ltd and the market value of its stake is Rs 900 crore. 
He said that the stock is trading at deep discount.

विकास सेठी ने कैश मार्केट से आज West Coast
Paper और Ponni Sugar (Erode) में क्यों दी खरीदारी की राय?

जानिए इस वीडियो में.. @vikassethi_SF | #StocksInFocus | #StocksToBuy pic.twitter.com/tGyB53meav

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This dividend yield is good at 1.84% and the promoters have been increasing their shareholding in the company, Sethi added.

He further recommended buying this stock at the current price, when all paper mill stocks are available at beaten-down levels.

Moreover, he suggested a buy on this stock with a target of Rs 340 and stop on loss of Rs 315.

In addition, he affirmed investing in Ponni Sugar (Erode) Ltd which is a small sugar industry with 3500 tons of sugar capacity. This company has a 19 MW power plant whose surplus power is directed to the Tamil Nadu government.

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The stocks of this company are affordable and the stock trades 0.6 times the book value, Sethi said.

The market expert proposed a target price of Rs 260 and Stop on loss of Rs 230.