Sunday, 25 March 2018

4 Fundamentally Strong Stocks To Invest in 2018

Posted by RaviKumar Nama
(Posted on 25 - Mar - 2018)

Dear Readers, we have been seeing the Market volatility from the last 2 months and no one knows about the end of this volatility in the Market. However, it is always better to invest into good fundamental stocks and keep on investing through SEP (Systematic Equity Plan) is a best approach to earn good yieldings from the Market. As I told in my earlier articles, Investing in Stock Market is a long term process and you need to wait with patience for yields. Every new investor should know some minimum knowledge about the stock selection procedure and the parameters we should apply in filtering the good stocks. This self analysis process would help you in finding the good stocks to proceed for investment. This year also, I have done fundamental analysis and technical analysis and found 4 stocks to invest in this year 2018. You can refer my previous article 6 Best Fundamentally Strong Stocks for Long Term Investment for fundamentally strong stock selection factors to be considered.

4 Fundamentally Strong Stocks in 2018:

Based on my fundamental analysis, I have identified the following 4 fundamentally strong stocks to invest in the year 2018. Investor can go through SEP approach and can invest into these stocks for long term to see good yields. However, it is advised to do your own home work before investing into these stocks.

Ruchira Papers Ltd

Ruchira Papers Ltd which is great pride in creating a quality range of 'TREE FREE PAPAERS' for writing, high volume print and packaging. The Company initially set up Agro Waste Paper Mill for manufacturing of Kraft Paper and commenced its operations with a small 2310 TPA Capacity. Over the Years, the Company has undertaken several phases of expansion and the Production Capacity of Kraft Paper since then has increased from 2310 TPA to 52800 TPA. The company had set up 33000 TPA unit for manufacturing of writing & printing paper adjoining to its existing unit in March,2008. The Company has been maintaining pace with the changing technology in the Paper Industry. Since the start of Commercial production in 1983, the company has been regularly upgrading its Works. Ruchira Papers has also demonstrated deep commitment to the cause of preserving the environment by adopting environmental friendly practices leading to energy conservation and ultimately savings add to the bottom line. The Company also lays due emphasis on power conservation.The ever increasing demand for Writing and Printing paper in domestic as well as international markets has thrown up a plethora of opportunities to the Company to diversify into Writing and Printing paper segment. Backed by buoyant economy coupled with the commitment of Government to increase literacy and growing awareness of quality paper among the consumers, this industry is on the threshold of a promising future. By delivering the international quality products and improving the operational efficiency and also by harnessing its inherent strengths, the Company has diversified into Writing and Printing paper.

CMP: 158.95
Book Value: 82.44
PBV: 1.92
P/E: 8.62
PEG: 0.26

IST Ltd

IST Limited is a manufacturing company. The Company offers precision engineering components/assemblies. The Company's products include automotive transmission parts, carburetor parts for two wheeler, fuel injection part for four wheeler, high precision mechanical electro-mechanical timers, precision components and assemblies, communication equipment and office products, consumer durable and white goods, oral care products, instrumentation and engineering goods, and dental and orthopedic screws. The Company manufactures precision turned, milled, drilled components and stampings for various industries, such as auto component industry, white goods industry, consumer goods industry, and dental and orthopedic implants. The Company offers cutters, drillers and reamers, compression molding tools, sheet metal tooling of various types and jigs fixture, among others. The Company operates in India. Gurgaon Infospace Limited is the subsidiary of the Company.

CMP: 934.70
Book Value: 907.66
PBV: 1.03
P/E: 6.65
PEG: .41

Hindustan Media Ventures Ltd (HMVL)

HMVL is one of the fastest growing Hindi Newspaper with almost 9 million readers and expanding rapidly across Hindi belt in India. This is 3rd largest daily newspaper in the country.Hindustan Media Ventures Limited (HMVL) has been named by Forbes as one of the Best Under A Billion companies in the Asia-Pacific region. It is one of the 35 Indian companies that have found a place on Forbes Asia's list of 200. HMVL, publisher of Hindustan, one of India's leading Hindi language dailies, is the only Indian media company to make the list.The board of Directors and Management of MHVL comprises eminent persons from diverse professional fields, who bring with them vast professional experience to the country. One more thing I have selected this stock into my list is, the upcoming general elections in 2019 which is a favourable factor to the Media and HMVL is one of the major beneficiery because of the company's track record. Company is virtually debt free and is showing a good consistent profit growth of 24.26% over last 5 years.

CMP: 223.50
Book Value: 177.37
PBV: 1.26
P/E: 9.25
PEG: 0.38

Chennai Petroleum Corporation Ltd (CPCL)

Chennai Petroleum Corporation Ltd (CPCL), formerly known as Madras Refineries Ltd (MRL) was formed as a joint venture in 1965 between Govt. of India (GOI) and AMOCO and National Iranian Oil Company (NIOC) having a share holding in the ratio 74%:13%:13% respectively. In 1985, AMOCO disinvested in favour of GOI and the share holding percentage of GOI and NIOC stood revised at 84.62% and 15.38%. The main products of the company are LPG, motor spirit, superior kerosene, aviation turbine fuel, high speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane and petrochemical feed stocks. The company has a good return on equity (ROE) track record of 27.08% from the last 3 years and has been maintaining a healthy dividend payout of 23.47%. Investors can invest into this stock for the long term perspective and can buy the shares through SIP approach over a period of 3 - 5 years to see good returns.

CMP: 322
Book Value: 271.88
PBV: 1.18
P/E: 5.29
PEG: 0.07

Disclaimer:

This data is for Academic purpose only. The data published on this post is just my opinion based on my own research and analysis and is provided as a general market commentary. As it does not take into account of your personal circumstances, please do not invest based solely on this information. By Viewing any material or using the information within this post you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general information provided here.

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