Place the bid based on value - Stock recommendations for investment

 Indian Stock market trends has been volatile since the December quarter. Early April signaled a comeback but sank back into loses . Analyzing the present conditions, it can be seen that the market is setting up for a correction. It is the best time for taking an advantage to place a bid for the future. The importance of value investing  came across the current situation. In my previous post there was a comment to include a content regarding the recommendation on some value stocks for investment under these circumstances. In my point of view one of the criteria that can be can be taken on selecting a stock is, it should be on a discount price. It means.. the stock has to be trading at a price that is lower than its intrinsic value. of course, It is not the only thing that has to be taken in account. The fundamentals of the company also should be good. Even though it is a great parameter for a stock selection. Here I recommend certain stocks that are trading at a fair price and also with good fundamentals. The stocks are,

• Oil India Ltd was incorporated in 1959 and is a mid-cap company with a market capital  of 25612 crore operating in Gas & Petroleum sector.
       Upto the December 2021 quarter , company gained a total income of Rs. 8126.56 crore which is a 10% rise from the previous quarter and up 263.39% from the previous quarter. It has also a remarkable  value in PAT of Rs. 1307.61 crore in latest quarter. The stock is trading at 0.90 times its book value and has been maintaining a healthy dividend payout of 24.72%. The stock was recommended by 13 analysts for a strong buy with a forecast price of Rs. 390. The intrinsic value of Oil India Ltd is Rs. 549 and CMP is Rs.233.

• Lohia securities Ltd Company is operating in Financial services sector. It is low-cap company with a market capital of 79.23 crore. The revenue generating by the company includes oil crude, Natural gas, Revenue from transportation services and Revenue from energy systems.
        For the quarter ended 31.12.2021, the company reported a total revenue of Rs. 8162.56 crore,  up 10.01% from the last quarter. The stock is recommended for a strong buy from 11 analysts with a forecast price of Rs. 390. The stock is now trading at Rs. 145 and the intrinsic value of Lohia securities Ltd is Rs. 621.

• Rishi Techtex Ltd is a company engaged in production of Shade nets and plastic woven sacks and supplying to fertilizers & cement industry. Rishi Techtex is a low-cap company with a market cap of Rs. 22.03 crore . The company has reported a net profit of 0.53 crores in the last quarter.

• Andra Paper Ltd is a company engaged in the business of manufacture and sale of paper, pulp and paper & paper board. The major key points of the stock are, the company is almost debt free and expected to give a good quarter. The company has a promoter holding of 72.20% as on March 2022. Company has a healthy P/E ratio of 11.6 . A good choice for a value investment.

Even though the analysis on intrinsic value gives a signal for buy the fundamental and technical analysis on each should be performed before the investment. No one parameter can describe the entire valuation of a company . More parameters has to be considered in the study for a good stock selection.

If this content seems interesting to you stay tuned for more updations from this space and
also watch my previous article on  stock market trends. Give your suggestions on comment section..