Stock Market

Holi Hai! 9 stocks that will add colour to your portfolio

Holi being India’s spring festival and as hopes springs eternal, CNBC-TV18 caught with three marketwallahs – Ambareesh Baliga, SP Tulsian and Prakash Diwan and asked them to pick stocks from a one-year perspective.

The experts pick nine stocks that may make this year more colourful for investors.

SP Tulsian has picked Dalmia Bharat Sugar , Lloyd Electric and Century Textiles.
Tulsian has an year-end target of Rs 140 on Dalmia Bharat Sugar. The company he says has 3 sugar mill in Uttar Pradesh and 2 in Kolhapur. The Q4FY16 operating profit is likely to be at Rs 72 crore versus Rs 30 crore in third quarter, he says.

For Lloyd Electric his year-end target is Rs 280. Fourth quarter is expected to be its best quarter, says Tulsian.

Century textiles is a company that is moving from BK Birla to AV Birla Group, says Tulsian. He  has a year-end target of Rs 630 on the stock. The company has cement plants, paper plant, textile division and realty divisions

Meanhwile, Ambareesh Baliga has picked Sintex Industries , Zicom Electronic and Fineotex Chemical .

Sintex Industries is an integrated plastics processor with diversified manufacturing capabilities that caters mainly to building materials and custom mouldings. Baliga believes the company has maintained the net debt to equity ration below 1x and the revenues in Q3FY16 were p 11.8 percent year-on-year. The stock at current market price of around Rs 73.80 is trading at price to earnings of 4 times FY17e earnings of Rs 18.50, says Baliga. He has a 12-month target of Rs 140

With regards to Zicom Electronic, which is a pioneer and a leader in Indian electronic security market, he has 12-month target price of Rs 150-160. The company  has a pan-India presence and a strong brand with marquee projects like Burj Khalifa and Etihad tower. It was also a first mover in SaaS technology, he says.

Fineotex Chemical has a strong balance sheet with zero debt, says Baliga, adding that it has a well diversified product portfolio with high level of customization. His 12-month target for the stocks is Rs 40-45

Meanwhile, Prakash Diwan is upbeat on Sunil Hitech with a 12-month targetr of Rs 275, TVS Electronics with one-year target of Rs 135 and Torrent Power with one-year target of Rs 325.

According to Diwan, Torrent Power is the best run company in that space and has great degree of efficiency in distribution. The company is likely to be the beneficiary of UDAY scheme, thinks Diwan.

TVS Electronics is a great pedigree stock and will be key beneficiary of Digital India campaign. While Sunil Hitech’s shift from power to EPC for roads, rail sector has paid off.

Disclosures: SP Tulsian has interest in all the stocks mentioned.

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