High Risk High returns stocks this week | Fusion - WeRIndia

Stocks that have a low price are usually not the best stocks. These stocks can often have a high level of risk. However, many stocks that have a high level of risk can also reap good returns in the long run.

Therefore, these are excellent investments, but they should only be taken by risky investors who are not worried about the dangers that these stocks propose. These are five stocks under ₹ 50 that have a high level of risk but also have the potential to yield great returns in the long term.

Zee Learn is one of the top education companies in India, owning both the fastest growing chain of K-12 schools, Mount Litera Zee School, and the number one chain of pre-school networks in Asia, Kidzee. Their stock has the potential to rally, since they have aggressive plans to expand and capitalize to cater to the education sector’s needs. They can post an EPS trade of ₹ 3 by 2018- 2019, and if the company is valued at a 20 p/e, then the stock will trade at ₹ 60.

The stocks for the South Indian Bank are trading at reasonable values. For the quarter ending on June 30th, 2017, the gross NPAs came in at 3.61%, and this is expected to improve in the future. For the same quarter, they reported an EPS of ₹ 0.56, and it is trading at a p/e of only 12 times. This makes it a good investment for receiving beneficial returns in the long run.

The stocks for the Infrastructure Development Finance Company Bank (or IDFC bank) are not below ₹ 50, but still have a relatively low price of ₹ 57. Unlike government-owned banks, the non-performing assets of the IDFC bank are well under control. Additionally, the recent merger with the Shriram City Union may boost the bank’s retail customers, since the Shriram City Union has a large customer base. This is a good stock to buy for the long term.

The Hindustan Construction Company (or HCC) has built some of the finest projects in India, such as the first nuclear power project, the first water treatment plant in Mumbai, and the well-known Bandra-Worli sea link. The company has recently said that it can reduce its debt by half, and they also have just received an award for the Bangalore Metro project. This award was worth about ₹ 800 crores. With the HCC’s stock currently trading at ₹ 32, this investment will certainly provide beneficial returns in the long run.

The stock of the Corporation Bank is currently trading at ₹ 40.65, and there are several reasons to buy it.

The non-performing assets of the banking sector may have peaked, and there will likely be fresh capital infusion in government sector banks.

Additionally, the consolidations in the banking sector through mergers will probably be very beneficial to the bank.

Therefore, this is a good stock to invest in for the long term.

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