Top 10 stocks to buy after this market mayhem

Every day as the cases of Corona Virus and the Mortality Rate in the globe is on the rise, one can easily predict the global economical downfall which would lead to having a RECESSION coming soon. 

How well you have been preparing for the coronavirus effect and its pandemic damage in the financial market's. 

What would you do, to become financially safe in such a condition and what is the strategy you need to plan to make you secure your needs and then your future.

Financial Vicious Cycle has already started in the Indian Financial System. Reduced Oil Rate, Global market crash, Pandemic Corona Virus, Falling GDP, Inflation on the Rise, Negative Companies Quarterly result are some of the basic indicators to predict a recession.

Economic recessions are often portrayed as short-term events. However, as a substantial body of economic literature shows, the consequences of high unemployment, falling incomes, less opportunity, depressed consumer spending, and reduced economic activity can have lasting consequences.   

When Global Market is Crashing Down every week, do not consider it as a THREAT !!! consider it as an OPPORTUNITY to Invest. 

IS INVESTING GOOD?

Old school thoughts of CASH Savings are not good enough to accomplish your inflation needs and goals. Investing will make your money work for you to meet your demands. 

Investing - is taking some of your money and trying to make it grow by buying things/assets, you think will increase in value with time.
for example - investing in equity, property or debenture, bonds, and derivatives.

Your Investment should not affect your basic financial needs, so invest with minimum risk-reward ratio and be patient. 

Benjamin Graham in his book “The Intelligent Investor” defines investment activity in the

following words:

“An investment operation is one which, upon thorough analysis promises safety of principal and

an adequate return. Operations not meeting these requirements are speculative.”

The Best and Safe Way with Minimum Capital and risk is to Start Investing in the Security market (i.e Equity Market.) 
(slowly and steadily divided over a period of time)

EQUITY MARKET?

An equity market is a market in which shares are issued and traded, either through exchanges or over-the-counter markets.

One of the benefits of trading in the share market is that investors can become partial owners of a company. These shares, offered by companies in return for money, are called equities. In the Indian stock market, equities are available for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Equity Market in comparison to other types of assets has given one of the best returns during inflation. This enables an investor to maintain their current lifestyle without cutting costs when the prices of the goods are steadily increasing. 

Equity while being a risky investment, offers a higher return than a savings account or a fixed deposit because the profit may be earned is virtually UNLIMITED !!!


BEST STOCK TO PICK.

After evaluating the fundamental and technical analysis and research with observing Indian Market over the years, I have listed down few companies which might outperform, considering the current market scenario.

In my earlier blog, I have mentioned about How to Choose a Company in an equity Market, read that first and then have a look at these listed companies. 

First in the list and my all-time favorite.

1. Hindustan Unilever.

Industry : FMCG
Current Market Price: 2051.
Good Price to buy: 1800 / 1700 / 1600 (If market fall down to nifty: 8000 and beyond)
buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Company is virtually debt-free.

Company has a good return on equity (ROE) track record: 3 Years ROE 74.11%

Company has been maintaining a healthy dividend payout of 81.13%

Remarks - little overvalued, but steady growth, sustained well in extreme market condition. 

2. Bajaj Finance.

Industry: Finance (NBFC)

Current Market Price: 2951.

Good Price to buy: 2600 / 2500 / 2400 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Listed in Top 5 global companies.

Company is expected to give good quarter

Company has good consistent profit growth of 40.14% over 5 years

Remarks - overvalued, but Exponential growth over many quarter, do not hold it for long since highly volatile stock, buy and sell in phases. 

3. SBI Card.

Industry : Finance

Current Market Price: 724. (IPO listed cut off - 755) (listed FEB 2020)

Good Price to buy: 650 / 600 / 550 (If market fall down to nifty: 8000 and beyond)

Pros : 

Company has good consistent profit growth of 24.10% over 5 years

Company has a good return on equity (ROE) track record: 3 Years ROE 29.77%

Remarks - Little overvalued, High potential to grow, only Indian credit card company to list, Govt huge stake. High return expected.

4. IRCTC

Industry : Travel

Current Market Price: 950. 

Good Price to buy: 600 / 575 / 550 (If market fall down to nifty: 8000 and beyond)

Pros : 

Company is virtually debt-free.

Company has a good return on equity (ROE) track record: 3 Years ROE 28.55%

Company has been maintaining a healthy dividend payout of 41.76%

Remarks - Perfect valuation at a moment , High potential to grow, NO peers competition, Govt huge stake. High return expected.

5. HDFC

Industry : Bank 

Current Market Price: 882

Good Price to buy: 775 / 700 / 650 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Company has good consistent profit growth of 20.63% over 5 years

Company has been maintaining a healthy dividend payout of 18.32%

Remarks - Good Time to do little investment in this sector though Risky, Only Private sector bank to show good prominent growth over the years, second choice will be Kotak bank. 

6. ITC

Industry : FMCG

Current Market Price: 175

Good Price to buy: 160 / 130 / 120 (If market fall down to nifty: 8000 and beyond)

Pros : 

Company has reduced debt.

Company is virtually debt-free.

Stock is providing a good dividend yield of 3.27%.

Company has been maintaining a healthy dividend payout of 55.94%

Remarks - Cheap, High potential to grow, showed resistance during extreme market condition. keep buying and selling on regular interval. 

7. IndiaMart.

Industry : E-commerce
Current Market Price: 2213

Good Price to buy: 2100 / 1900 / 1850 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Company is virtually debt-free.

Remarks - overvalued, High potential to grow compared to peers, consistent and steady growth.

8. Pfizer Ltd

Industry : pharma.

Current Market Price: 4016

Good Price to buy: 3900 / 3800 / 3700 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Company is virtually debt-free.

Company has been maintaining a healthy dividend payout of 25.52%

Remarks - Little overvalued, High potential to grow,  High return expected.

9. Polycab India Ltd.

Industry: Cables and Wires.

Current Market Price: 771

Good Price to buy: 680 / 650 / 600 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

Company has reduced debt.

Company is virtually debt free.

Company has good consistent profit growth of 41.04% over 5 years

Remarks - Little overvalued, High potential to grow, only Indian credit card company to list, Govt huge stake. High return expected.

10. Godfrey Philip

Industry: tobacco

Current Market Price: 850

Good Price to buy: 680 / 650 / 600 (If market fall down to nifty: 8000 and beyond)

buy 5 -10 % lower to CMP is Nifty Sustain 8500 level

Pros : 

been there in business since long

Company is virtually debt-free.

Company has been maintaining a healthy dividend payout of 25.48%

Remarks - Little overvalued, High potential to grow, moderate return

Other Companies - All HDFC bank assets, Kotak Bank, Colgate, Britannia, Pidilite, Asian paints can also be considered as an option. 

Suggestion

Invest your extra money.

Know Your Self Risk Reward ratio.

Invest at least 2 - 3 years.

Act according to the market situation.

Keep track Records, Update on the News, Financial Chart, Annual reports. 

The best rewards on a stock are typical with a hold time of between 50 to 300 days. It takes time for good profits to develop and they certainly do not happen overnight, unless you are extremely lucky. The typical high-profit trade in the LST Ultimate system is 30% and the hold time is an average 45 days - Warren Buffett