Stocks to buy with Anil Singhvi: Career Point and Cadila Healthcare, Here are Vikas Sethi’s top two picks for good returns

Zee Business Managing Editor Anil Singhvi, in the latest episode of ‘Sadabahaar Sethi Saab’ show, talked to market analyst Vikas Sethi and asked him to reveal his top picks that can generate good returns for investors who are on the lookout for smart deals. Sethi gave two calls today, one from the cash market and another from F&O space. 

1st stock from Cash: Career Point

Straightaway giving his first pick from the cash market, Vikas Sethi said Career Point will be his first recommendation of the day. He said that Career Point is a Kota based education sector-based company; fundamentally the company is extremely strong. Career Point stock is trading at valuations of 11 currently. The company gave a dividend of Rs 3 last year. The operating profit margin of Career Point is 42%, debt equity ratio is 0.15. Career Point is growing smoothly and looks good from here. 

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Following are the key reason to pick Career Point in cash today:    

1. Schools may reopen from next week which will give a boost to the education sector 
2. Budget session will focus on education sector and will definitely announce some measures for the sector 
3. Byju's acquired Blackstone-backed Aakash Educational Services for $1 bn (i.e. 7300 cr). This may trigger rerating in the entire education sector.  

सदाबहार सेठी सा'ब: विकास सेठी ने आज शॉर्ट टर्म में दमदार मुनाफे के लिए किन स्टॉक्स को चुना? जानें यहां@AnilSinghvi_ @vikassethi_SF pic.twitter.com/wsnAJk7rxH

— Zee Business (@ZeeBusiness) January 14, 2021

Sethi said that Career Point looks extremely attractive at current valuations, for a target of Rs 195 in short term with stop loss of Rs 165. Balance sheet of Career Point is much better when compared to peer group companies which make it more attractive for investors.  

2nd Stock from F & O Space: Cadila Healthcare

Picking another stock from the Pharma sector in the F & O space, Sethi said that the entire pharma space was in focus yesterday and he picked Cadila Healthcare as he thinks that fundamentally the company is extremely strong. The stock is valued at lower levels when compared to its peer group. Cadila Healthcare is much ahead in Covid-19 vaccination drive. The Drug Controller General of India (DCGI) has approved one of the vaccines of Cadila Healthcare for phase-3 trial. This could potentially be a big positive trigger for Cadila Healthcare. Promoters have 74% stake in the company. The target on Cadila Healthcare in the short term is Rs 525 with a stop loss of Rs 495.