Best new long term stocks

May 17, 2017 Finance Talk Valli Sarvani No comments

Long term investors always make equity returns, which tend to outperform other assets.

These are a few stocks that provide such investors with great opportunities to generate money in long term.

• From the agrochemicals and pesticides space, Rallis India is an ideal choice; for one, the government will double income in the upcoming five years. Reporting good numbers in FY 2017, the debt to equity ratio is less than 0.1 and the company’s yearly EPS was close to ₹14, translating into p/e of 17 times. The stock last closed at ₹221.

• Lovable Lingerie is popular with the lingerie business. Having reported a solid quarterly performance and having a small equity capital, they are likely to report an EPS of ₹15 for 2017 through 2018.

It trades at a P/E of merely 16 times as well.

• Hindustan Construction Company, or HCC, is one of the oldest Indian companies in the business. Two reasons give this stock advantage over others: for one, the government recently allowed arbitration awards to be settled swiftly, saying to help reduce the company’s debt by half, and for two, there is a sizable order book position for the company.

The shares are also good news for long term investment, at ₹44.

• Kiri Industries is the largest in dye and intermediaries businesses, trading at just a 1 year P/E of 10 times.

Likely to end the year 2017 to 2018 at an EPS of at least ₹38, it also quotes at only ₹275, a P/E of only 6 times. This is one of the cheapest and fastest growing stocks around.

• Lloyd Electric manufactures heat exchangers, railway HVAC systems, air conditioners, and such like. It should end 2017 to 2018 with an EPS of ₹15, left at a P/E of only 17 times, a good deal at current level of ₹229. This will benefit by the growing economy, and especially growth on railway spending.

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