Sumit Bilgaiyan
Since February 19, Nifty has rallied almost 1,050 points. Foreign investors are providing a major thrust to the rally. Foreign investors have poured Rs 13,564.57 crore in February and poured Rs 32,371.43 crore in March.
Now we are near all-time high level in Nifty but still mid and smallcaps are lower compared to their highs. So we are expecting rangebound movement in Nifty but during April, there will be stock-specific rally so try to pick momentum stocks and trade with a stop loss.
For this week, Nifty has strong support at 11,565-11,500 and resistance at 11,700-11,760.
Here are three stocks that could be bought in a staggered manner for medium to long term:
Torrent Power posted strong numbers for Q3FY19. Net profit increased 14 percent to Rs 238 crore YOY on 18 percent higher sales of Rs 3,254 crore.
Its PAT increased 20 percent to Rs 879 crore and sales grew 18 percent to Rs 10,226 crore in 9MFY19 YoY. TPL trades at PE ratio of 11.3x. It has paid 50 percent dividend for FY18. We recommend buying in a staggered manner for medium to long term.
Radico Khaitan is one of the largest players in the Indian spirits industry and owns brands like 8PM whisky, Magic Moments vodka, etc. The company posted strong numbers for Q3FY19. Net profit increased 49 percent to Rs 52.1 crore YoY on 18 percent higher sales of Rs 2,058.37 crore. RKL trades at PE ratio of 28x.
The company’s strategy has been to drive growth that is led by premium products and is profitable, sustainable and responsible. Technically, after a strong consolidation, the stock is ready for an upmove. We recommend buying in a staggered manner for medium to long term.
Trident, the flagship company of the Trident Group, is a leading manufacturer of yarn, bath linen, bed linen and wheat straw-based paper, chemicals and captive power. It has reported excellent results for Q3FY19. Sales grew 18.9 percent YoY to Rs 1,306.4 crore while EBITDA grew 22.5 percent to Rs 283.6 crore and PAT increased by 53.6 percent to Rs 112.1 crore as against Rs 73 crore.
Its PAT increased 31.75 percent to Rs 280.5 crore in 9MFY19. At CMP, the stock is trading at P/E of just 10.8x. It is regularly dividend paying company. It has paid 15 percent dividend for FY18 and paid 24 percent interim dividend for FY19. Promoters have increased their stake by 3 percent in 9MFY19 which is positive. Technically also stock is ready for an upmove. We recommend buying in a staggered manner for medium to long term.
The author is Founder of Equity99.
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