Bonanza Portfolio's top stock picks amid ongoing market slump; check here

Dr Lal Path Labs witnessed a 10% correction during the recent downturn.

Amid the unfolding Middle East tensions, surging treasury yields, and rising commodity prices, investors have taken a step back from the equity markets. Thousands of crores in wealth have been wiped off, as expensive valuations and tepid earnings also hurt investor sentiment.

However, the Oracle of Omaha, Warren Buffett, often gives investors a simple piece of advice to become rich: "Be greedy when others are fearful”. In this market downturn, analysts suggest using the opportunity to strengthen your portfolio by entering stocks at attractive prices.

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Moneycontrol spoke to Bonanza Portfolio’s Omkar Kamtekar who shared his top ideas during this market downturn.

Aavas Financiers | CMP: Rs 1,575

Aavas Financiers, an affordable housing finance company (AHFC), primarily serves first-time homebuyers in the low-to-middle income bracket, especially in tier 3, 4, and 5 cities. As of Q1FY24, their Rs 14,650 crore loan book primarily comprises low-ticket, high-yield loans, with an average size of Rs 7.4 lakh and a yield of 13.12 percent.

Aavas stands out as one of the fastest-growing AHFCs, boasting of exemplary asset quality. The company's significant investments in technology, human resources, and servicing capabilities are poised to enhance operational efficiency and fuel future growth.

Aavas Financiers PE ratio is at 27.4, higher than the industry's mean. Currently trading at Rs 1,575 — roughly 30 percent below its 52-week high of Rs 2,078 — it's an attractive portfolio addition.

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PCBL | CMP: 189

PCBL is a leader in the manufacturing and sale of Carbon Black (CB), which is mainly used in tires and other rubber products. PCBL is the largest carbon black manufacturer in India with a current production capacity of 7,49,000 MTPA and a strong global player.

This manufacturing capability is an in-dissolvable moat which will ensure long-term business advantages over competitors. The management of PCBL have guided they will increase EBITDA/ton to Rs. 20,000 by FY27; add another brownfield capacity; and add new products that would be used in EV batteries.

PCBL's PE ratio stands at 16.5. After the recent correction in the market, PCBL is available at Rs 189 which makes it a lucrative buy.

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Dr Lal Path Labs | CMP: Rs 2,360

Dr Lal Path Labs is India’s leading diagnostics company with an integrated PAN-India network, offering a range of diagnostics and related healthcare tests. DLPL uses its technological prowess and network advantage to generate massive free cash flows.

DLPL has been consistently free cash positive for the last 10 years except in FY22 which was on account record Capex and Suburban acquisition. During Q1FY24, DLPL serviced 6.9 mn patients and 19.3 mn samples, the average revenue per patient for Q1FY24 was Rs. 789.

The counter's PE ratio is 74.3. Dr Lal Path Labs witnessed a 10% correction in the recent downturn, making DLPL a great candidate from a long term perspective.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.