It is observed that Indian are currently most optimistic investors on the back of robust growth in the domestic consumption market and a positive economic outlook. There is one question that strikes at our minds and that is which stocks to invest in? At present, the markets have gained 60% over the last one year and as a result, stocks are not cheap or do not trade at reasonable valuations.
However, there are some stocks that are still quoting at lower P/E multiples. Following stocks are out of those stocks that are even below their book values. These stocks still need sound research and analysis before moving forward with them as they may be filled with the danger of overturning growth prospects based on which markets could have assigned lower valuations to them.
Mahindra & Mahindra
According to the researchers of Money Classic Research, who is best provider of share market tips, people are betting on the demand for Autos from the rural areas of India. As Mahindra & Mahindra company is a dominant player in the tractor market with 41% of the market share and also boasts of a smart portfolio of utility vehicles like Scorpio and Bolero, so you must move along with the stock pick of M&M. it is expected that the company will be looking to diversify its business into non-auto businesses like IT and finance.
According to the veteran analysts, the second best stock pick is NTPC. It is expected that there will be a huge capacity addition in the power space of India over the next few years. The NTPC Company is expected to grow at the fastest pace like some other new private players in the industry. Along with the industry, the stock will grow with its expansion plans on track.
There are large numbers of analysts, who have faith that there is a lot of potential growth in subscriber numbers that are still remaining in India’s telecom industry. However, if we look at the prospects of Bharti Airtel’s stock, then the immediate future of this company continues to remain pretty cloudy. But, you are recommended to make long-term investments with 5-7 years horizon until when the positive effects of consolidation in the sector could be more pronounced in nature. From the 3G revolution, the company is also well-placed to benefit the auction process for which has already kicked off.