It is observed that Indians are currently most optimistic investors on 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 overturn growth prospects based on which markets could have assigned lower valuations to them.
- K. Lakshmi Cement
You can choose J.K. Lakhsmi Cement from the allied infrastructure space. This is recommended as India chugs along with increased activity in areas of homes, roads, airports and other infrastructural projects where cement is predominantly used in structural works.
The technical analysts of Money Classic Research, who are experienced in generating accurate intraday trading tips, informs that the cement stocks have registered a sharp gain in the previous year. It will witness a bearish trend around this year due to rising raw-material costs of coal and large supply overhang. Instead of picking this cement company, you could have also directly gone for a good infrastructure company with niche presence in certain specific segment. Presently, the cement industry is going through the phase of overabundance.
According to the veteran analysts the second best stock pick is NTPC. It is expected that there will be huge capacity addition in the power space of India over the next few years. The NTPC Company is expected to grow at 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.
- Bharti Airtel
There are large numbers of analysts, who have faith that there is lot of potential growth in subscriber numbers that is still remaining in the India’s telecom industry. However, if we look after 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.