Navratri Dhamaal: 9 Stock Market Gems To Have In Portfolio

Zee Business has recommended 9 Navratri Stock Market Gems. These are said to be 9 best stocks to make the portfolio strong.

9 Navratri Stock Market Gems: Navratri days are here and if you are looking to strengthen your portfolio, then you must consider these 9 gems (stocks) favourably. On this auspicious occasion, Zee Business TV has released a report wherein 9 outstanding stocks have been highlighted that will be of great value to investors. These 9 shares have been selected by the Zee Business Research team and can bring great prosperity to you.

Here are 9 best stocks to make your portfolio strong

Stock 1: UltraTech cement

Target price by Prabhudas Liladhar: Rs 5,125

Top reasons to invest:

– It has a strongest operating profit in the industry
– It will get support from rising prices in South India
– Margin of the company will improve as coal, pet coke prices fall by 10-12%
– It is working on new projects will start when the monsoon ends
– Debt of the company has reduced by Rs 1,022 crore in the previous quarter
– It will work on new technology with Hindalco and new technology will help in freight cost reduction

Stock 2: HDFC AMC.

Target price by Morgan Stanley: Rs 3,365

Top reasons to invest:

– Second largest mutual fund company in the country
– Market Cap of over Rs 32,000 crore
– Highest profitable mutual fund company of the country
– AUM of Rs 3.56 lakh crore by the end of June
– Focus on Tier-2 and Tier-3 cities for expansion
– More than 65,000 strong distribution network

Stock 3: HDFC Bank

Target price by Morgan Stanley: Rs 1,700

Top reasons to invest:

– Strong distribution network of 5000 branches
– Retail loan growth over 16% despite weak credit growth
– Strong asset quality with better governance and management
– Having retail focus bank does not affect the problems of the sector

Stock 4: JK Paper

Target price by IDBI Capital: Rs 184

Top reasons to invest:

– Second largest paper company in the country
– Ban on single use plastic will help
– Increasing domestic demand and imposition of anti-dumping duty on uncoated paper will benefit
– Great results in first quarter, 9.5% improvement in margin
– Working on Rs 2,100 crore capacity expansion plan in Gujarat

Stock 5: Spencer Retail

Top reasons to invest:

– Company formed after demerger from CESC
– 156 retail stores in about 40 cities
– Returned to profit from losses last year
– Acquired Nature’s Basket from Godrej Group in May 2019
– No debt, cash in hand was Rs 220 crore by the end of FY19
– Focus on opening new stores in Eastern UP, West Bengal
– Company has expansion plans in Andhra Pradesh
– The company is focusing on e-commerce too

Stock 6: SpiceJet

Target price by Goldman Sachs: Rs 158
Target price by ICICI Securities: Rs 175

Top reasons to invest:

– To benefited from reduced competition, 32 aircraft added in first quarter
– Popular for India’s first bio-jet fuel used in 2018
– Estimated to increase fleet capacity by 80% in the current financial year
– Passenger load factor increased to 93% in August, 2019
– Market share above 15%, demand expected to rise in festive season

Stock 7: Jubilant Food

Top reasons to invest:

– Margin improved after deal with PepsiCo
– 22 new stores opened in the quarter
– Expected to open 100 new stores in FY20-21
– Continuous focus on cost reduction
– Dunkin ‘Donuts tuned profitable before Q4 guidance

Stock 8: TCS

Top reasons to invest:

– Market capital of around Rs 8.5 lakh crores
– Country’s largest IT service company
– Tata Sons’ highest profitable company
– Around 80% of Tata Sons’ total income comes from TCS
– A company with more than $100 billion valuations in April 2019
– $17.4% annual growth in income over 13 years
– Bonus given to shareholders in 2009 and 2018
– Over 25% operating margin and has a lowest 11% attrition rate

Stock 9: L&T

Target price by ICICI Securities: Rs 1,663

Top reasons to invest:

1. Technology, engineering, construction-related company
2. Business in 30 countries other than India
3. FIIs have raised their share by 20% in FY19
4. Best performance in infrastructure sector in June 2019
5. 44% growth in infrastructure segment
6. Current order book of 3 lakh crore, order inflow of 46,000 crore expected in Q2FY20