Stocks to buy- Looking for long-term investment options? Expert Vikas Sethi two stocks with strong fundamentals
In conversation with Zee business Managing Editor Anil Singhvi, market expert Vikas Sethi advised to invest in two fundamentally sound stocks.
In conversation with Zee business Managing Editor Anil Singhvi, market expert Vikas Sethi advised to invest in two fundamentally sound stocks- Mrs Bectors Food Specialities and Tamil Nadu Newsprint and Papers.
Mrs Bectors Food is India’s leading supplier of biscuits, loaves of bread, and bakery products, Sethi said. This company is a premium player in the biscuit segment under the brand name 'Cremica' and sells bakery products under the brand 'English Oven', he added.
This stock was trading at Rs 269 on the NSE at the time of the recommendation.
The retail distribution outlet of the company is impressive at 4.58 lakhs and with 748 distributors worldwide. It supplies buns to quick-service restaurants (QSR) chains such as McDonald’s, KFC, cloud kitchens, and to even CSD canteens. Undoubtedly this company is a Fundamentally solid company. It has maintained a 30% return ratio in 3 years, he added.
Further, he mentioned the shareholding pattern of the company, and Bajaj Holdings is one of the stakeholders with a 1.33% shareholding.
He recommends a buy on this stock with a target of Rs 295 and the stop loss of Rs 260.
Moreover, he affirmed investing in the paper sector is also profitable since the paper sector is flourishing. Tamil Nadu Newsprint is a leading manufacturer of paper, paper board, cement, and power, he said. The company has a strong presence in paper and paper board items.
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Explaining more about the company, he said that the cement capacity of this firm is 328500 tons. The stock was trading at levels around Rs 177 at the time of the recommendation. Big companies like HDFC, and LIC hold shares in this company and the Tamil Nadu government holds 35% ownership of the company.
Price- 179.65
Target- 195
Stop loss-172
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