In an interview with ET Now, Vikas Sethi has identified the following two stocks:
HSIL – dominant market share, attractive valuations and tremendous growth expected:
Today, I would like to recommend a stock which has seen a sharp cut in the recent days or fortnight. It has corrected close to 27% from its recent highs, despite having to do with anything negative as far as the fundamentals of the company are concerned. The name of the stock is HSIL, the Hindustan Sanitaryware India. This is a leading sanitaryware company in the country with a dominant 40% market share. The company has a very strong brand, variety of product portfolio, and a very strong distribution network across the country.
The kind of results which the company came out with for the March quarter was pretty good. After the recent correction, the stock has also started trading pretty attractive at around say 23-24 times its FY15 reported EPS, which is quite attractive for a company which is expected to grow tremendously in the coming years. So, I am bullish on the stock, and I feel one could buy into the stock at the current levels of 335 rupees and my target in a year’s time would be 550 rupees on the stock.
Dish TV – clear turnaround story set to go places:
My second bet is clearly a turnaround story. It is Dish TV, which is the leading DTH player in the country. The company came out with its March quarter numbers and they were simply fabulous. The company reported profit of around 35 crores versus around 150 odd crore losses, and if you look at the full financial year, the company has reported profits for the first time since inception. So, it is a clear turnaround story.
This company should go places in the coming quarters and years. I think it is just the beginning of their growth story. The stock presents a pretty good opportunity for long-term investors and I feel in a year’s time, we could see levels of 150 rupees on the stock.