2 Stocks that Warren Buffett’s Guru Would Buy Today

  • Stock Market Analysis

Most of you following the legendary investor Warren Buffet would know about his guru - Benjamin Graham, also known as the father of value investing. Warren Buffett credits most of his learnings to Benjamin Graham and therefore reading the latter’s ideology makes sense for those looking to sharpen their investing skills.

In InvestingPro+ making investors’ job easier, there is a dedicated screener called the “Ben Graham Formula” that analyzes all the parameters Benjamin Graham used in his time to select high-quality businesses at cheaper prices. All these parameters have been coded to finally select stocks in the blink of an eye.

To further sort better quality stocks, the screener also adds additional modern layers such as minimum analysts’ targets covering those stocks with a 20% upside. Here are 2 stocks that meet such strong criteria in today’s time.

Satin Creditcare Network Limited

Satin Creditcare Network Ltd (NS: SATR ) is a non-banking finance company, providing microfinance services in India and has a market capitalization of INR 2,545 crore. The stock is trading at a very low TTM P/E ratio of 6.26 compared to the sector’s average of 20.12, which is what value investing is all about.

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In only 3 quarters, FIIs have increased their stake from 5.29% to 9.58% in the December 2023 quarter. InvestingPro+ fair value feature is estimating a healthy upside of 49% to INR 342. 2 analysts are covering the stock and the average upside they see is to INR 360.

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Ujjivan Small Finance Bank Limited

Ujjivan Small Finance Bank Ltd (NS: UJJI ) provides various banking and financial services in India and has a market capitalization of INR 6,388 crore and trades at a very low TTM P/E ratio of 7.78, compared to the sector’s average of 20.12. After 2 years of reeling under losses, the bank finally turned profitable in FY23 with a net profit of INR 890.7 crore.

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It’s surprising that such a small bank has a very good 34.98% interest by FIIs. As per the fair value, the stock has a good upside potential of 17.7% to INR 59.5 and the highest intrinsic value is coming out at INR 74. 12 analysts covering the stock have an average target of INR 65.3.

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  • Dinesh Dangi @Dinesh Dangi
    PE of South India Bank is also very low ,pl give your view on that
    Like 4

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