Stocks That Would Create Wealth In Long Term
EquityPandit has published the List of 4-Wealth Creator Stocks. This List Contains 4 most preferable stocks at this point of time for long-term investing. These Stocks are highly discounted and fundamentally most Strong companies in India. These Stocks would multiply your wealth in years to come.
STATE BANK OF INDIA
Current Market Price: Rs.174
52 weeks high: Rs.336
52 weeks low: Rs.171.5
Consolidated P/E: 7.84
Book Value: 207
- From above data it is very much clear that stock is available at historical low valuation as it is available at around 15% discount to its book value. Valuation wise stock is available at quite discounted valuation.
- Banking Sector will face challenge from April 2016 onwards when small/payment banks will start its operation. However, among banking experts, it is quite debated that what kind of effect it would have on existing banking sector. But everyone agrees on one point that big banks with good corporate governance will ride out through this wave of competition. Also they will be benefited by the technology up-gradation. So SBI will benefit from this, unlike other PSU banks that still have corporate governance issues.
- From 52 week highs, stock has already seen a correction of about 40% & is available at huge discounts. Now let’s take a look at technicals of stocks. Stock has long term support at 170 from where it has taken bounce back. Now if Nifty has corrects further and breaches 7200 level then we could see further correction in stock which could take it upto 150 levels. By seeing present volatility we advises to buy 30% of your allocated investment amount at this level & remaining at 150 level if it comes to those levels.
- So one can buy SBI with targets of 220-260-300. For long term investors, who can hold stock for few years stock can multiply their wealth in years to come from this levels.
SUN PHARMACEUTICALS LIMITED
Current Market Price: Rs.773
52 weeks high: Rs.1200
52 weeks low: Rs.704
Consolidated P/E: 48
Book Value: 106
- Sun pharma is a leading pharma player in India. In recent months, stock has seen correction of almost 40% due to variety of reasons.
- One of the main reasons is that company has received US FDA alert on its Gujarat plant. Another reason was that company ventured in solar as well in wind energy, which was taken very negative by market players and stock was been hammered.
- After that hammering, company has clarified that it has scrapped all plans for alternate business. Also company is currently addressing US FDA issue which it has resolved in past also.
- Apart from that, there were no fundamental reasons for the stock to correct this much. This Stock offers good value buying. Till now stock has underperform in market but time has come to reclaim its old glory. One can go and buy this stock with a target of Rs.1000-1200-1500 levels.
LARSEN & TUBRO LIMITED
Current Market Price: Rs.1100
52 weeks high: Rs.1893
52 weeks low: Rs.1069
Consolidated P/E: 23
Book Value: 439
- L&T is a replica of Indian growth and Infrastructure story.
- At present company is facing both domestic as well international businesses pressure, especially, from Middle East. Due to fall in Crude prices orders from Middle East has slowed down significantly. Domestic economy is also not doing well. That’s the main reason, why stock has seen this massive correction.
- Now in time to come, Crude prices would stabilize as it had seen significant correction. Government has also increased it’s spending on Infra project. In both the cases L&T would be biggest beneficiary.
- Technically stock has good support around 1100 level. If market condition deteriorates further then L&T could fell as low as Rs.935. But both of these levels are good entry point for long term investors.
- Also in the coming months Government is planning to double its infra spending which would benefit L&T in a big way.
- Investors can buy this stock with a target of Rs.1300-1500-1800.
GUJARAT GAS LIMITED
Current Market Price: Rs.540
52 weeks high: Rs.874.8
52 weeks low: Rs.453.2
Consolidated P/E: 22
Book Value: 144.61
- Biggest winner of cheaper Gas price and upcoming environmental policy.
- Gujarat gas is India’s one of the biggest gas distribution company. At present, company has gas distribution in various cities and planned to expand its distribution business across India.
- Company is biggest beneficiary of cheaper gas price which increases its operating margins.
- Company had good corporate governance and healthy balance sheet in past.
- Investors can buy this stock with a target of Rs.700-900-1200.