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Last Updated : Apr 15, 2019 09:07 AM IST | Source: Moneycontrol.com

'Betting on BHEL & Britannia with medium-to-long term investment horizon'

For next week Nifty has strong support at 11,550-11,500 and resistance at 11,710-11,760, said Sumit Bilgaiyan of Equity99

Sumit Bilgaiyan
 
 
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Sumit Bilgaiyan

Finally, the electoral battle for the central government began with claims and counterclaims made by all parties. With the first phase of polling on April 11, India VIX has surged above 20 level.

FIIs have poured in Rs 4,421.76 crore during April so far. The DIIs, however, continued to book profits and remained net sellers in the last two-and-half months.

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Crude oil prices moved higher with Brent crossing $71 per barrel on account of supply cuts led by the OPEC and US sanctions on Iran and Venezuela. Higher crude price is one of the negative developments for our market and economy.

Result season started with TCS and Infosys posting above expected numbers for Q4FY19; however, Infosys disappointed with future guidance. But for the next one month, market momentum will remain positive and the result season will support this momentum.

For the next week, Nifty has strong support at 11,550-11,500 and resistance at 11,710-11,760.

Here are the top stock trading ideas that can give good returns:

KEI Industries: Buy for medium to long term

KEI manufactures and markets extra-high voltage (EHV), medium voltage (MV) and low voltage (LV) power cables. Serving both retail and institutional segments, KEI has emerged as a one-stop shop for products and services, with its growing presence in the Engineering, Procurement and Construction (EPC) services, further strengthening its leadership position.

The company posted strong numbers for Q3FY19. During Q3FY19, its net profit increased 24 percent to Rs 48.39 crore from Rs 39.03 crore YoY on 22.37 percent higher sales of Rs 1087.49 crore.

For 9MFY19, it posted 28.36 percent higher PAT of Rs 121.94 crore on 20.36 percent higher sales of Rs 2,968.18 crore and an EPS of Rs 15.52.

At the CMP, the stock traded at a P/E of 18.5x. Its pending order is approx Rs 3,866 crore plus L1 Rs 175 crore of EPC, EHV & Export. The company is expanding its Pathredl and Silvassa plant. DIIs have increased their stake by 2.11 percent in December Quarter. We recommend buying in a staggered manner for medium to long term.

Bharat Heavy Electricals: Buy for medium to long term

Bharat Heavy Electricals (BHEL) is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies of its kind in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railways), Renewable Energy, Oil & Gas, Water and Defence with over 180 products offerings to meet the needs of these sectors.

The company paid 40 percent interim dividend for FY19. With this, BHEL has paid the highest total dividend in a single year, in the last five years. We recommend buying in a staggered manner for medium to long term.

Britannia Industries: Buy for medium to long term

Britannia Industries is one of India’s leading food companies with a 100-year legacy. It is among the most trusted food brands and manufactures India’s favourite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold that are household names in India.

At the CMP, the stock trades at a P/E of 64x. It has shown a reversal sign on the daily chart after a long time. We recommend buying in a 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 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.​

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First Published on Apr 15, 2019 09:07 am
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