Moneycontrol
Last Updated : Dec 09, 2018 10:31 AM IST | Source: Moneycontrol.com

Avoid trading this week; check out these 3 near term buy ideas

We are expecting highly volatile ride in next week so it is better to stay away from trading for next 3-5 days, says Sumit Bilgaiyan of Equity99

Moneycontrol Contributor @moneycontrolcom
 
 
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Sumit Bilgaiyan

Equity99

We have seen the Nifty and Sensex correct in four out of five days last week. During the week, global markets remained highly volatile with a negative bias. We have seen global cues affect our market last week. Now all eyes have been on one key event, which is the state election results on December 11, widely considered as a semi-final before next year's general elections. This will impact the market in the short term and we expect a highly volatile ride in the next week, so it is better to stay away from trading for the next 3-5 days.

The Nifty has strong support at 10,500-10,450 and faces resistance at 10,950-11,100 levels.

Here are the top stock trading ideas which can give good returns in the near term:

Bajaj Auto

Bajaj Auto is the world’s third largest manufacturer of motorcycles and the largest manufacturer of three-wheelers. First eight months of FY19 became golden period for company. During this period its motorcycles sales grew by 29 percent and commercial vehicles sales grew by 41 percent. Total sales grew by 30 percent. Its motorcycle sales grew by 31 percent during November 2018.

Due to higher raw material price we have seen some pressure on margin front during H1FY19 but we are expecting margin improvement during H2FY19. During Q2FY19, its sales and EBITDA grew by 21.21 percent YoY and 3.45 percent YoY, respectively, while PAT increased by 5.28 percent to Rs 1256.57 crore.

During H1FY19, its sales and EBITDA grew by 23.75 percent YoY and 17.32 percent YoY, respectively, while PAT increased by 13.2 percent to Rs 2298.35 crore. At the CMP, the stock trades at a P/E of 18.5x. We are recommending a buy in staggered manner for medium to long term.

Siemens

Siemens focuses on the areas of electrification, automation and digitalization. It is one of the leading producers of technologies for combined cycle turbines for power generation; power transmission and distribution solutions; infrastructure solutions for Smart Cities and transportation; automation and software solutions for industry.

The company posted strong numbers for Q4FY18. During Q4FY18, its net profit increased by 36.59 percent to Rs 279.20 crore from Rs 204.40 crore on QoQ basis on 28.26 percent higher sales of Rs 3802 crore.

New orders for the financial year 2018 were Rs 12,740 crore. The order backlog as of September 30, 2018 stood at Rs.12,352 crore. Siemens trades at PE ratio of 37.5x. We are recommending a buy in staggered manner for medium to long term.

GSFC

GSFC is India's leading producer of fertilizers and bulk industrial chemicals. The company is a leading manufacturer of nitrogenous and phosphatic fertilizers. It is having total 24 fertilizer products.The company is also India'a leading producer of industrial chemicals like caprolactam, melamine, MEK-Oxime, Hydroxylamine Sulphate Crystal and acrylic polymers.

The company posted strong numbers for Q2FY19. During Q2FY19, its net profit increased by 183 percent to Rs 224.25 crore from Rs 79.23 crore on YoY basis on 73.47 percent higher sales of Rs 2671.87 crore. EBITDA grew by 228 percent to Rs 318 crore. It’s PAT increased by 146.34 percent to Rs 294.99 crore and sales grew by 63.52 percent to Rs 4442.19 crore in H1FY19.

GSFC trades at PE ratio of 6.5x. We are recommending a buy in staggered manner for medium to long term.

The author is Founder of Equity99

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com/CNBC-TV18 are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Dec 9, 2018 10:31 am
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