2 Stocks You Shouldn't Miss for Short-to-Medium Term Gains

  • Stock Market Analysis

After declining to the day’s low at 60,213.64 in the second half session, the BSE Sensex marginally recovered, ending a 0.19% low to close at 60,433.45. The benchmark Indian equity indices have been trading sideways for the last five sessions. NSE Nifty saw the day’s high at 18,112.60 before touching low at 17,983.05. The index ended at 18,044.25, down 0.13% today. So far, the NSE Nifty has been able to hold above the 18,000 level. The benchmark indices are trading at a slightly higher level than a month before. From the last couple of days, power stocks have been doing rounds. Tata Power, Adani Power (NS: ADAN ), Voltamp Transformers are a few scrips that have done really well in recent trading sessions. We identified two stocks that can deliver decent returns in the short to medium term.

1. Bharat Heavy Electricals (NS: BHEL ) Limited

Bharat Heavy Electricals Limited (or BHEL) manufactures power plant equipment. BHEL's products include gas turbines, generators, thermal sets, diesel shunters, turbo sets, hydro sets, power transformers, switch gears, circuit breakers, and boilers. Apart from this, BHEL also manufactures compressors, valves, rectifiers, pumps, capacitors, oil rigs, as well as castings and forgings. The government of India’s push to Atmanirbhar Bharat in the defense sector, a post-pandemic sharp rise in power consumption, Government’s thrust on infrastructure development, proposed disinvestment in BHEL should drive the stock in the short to medium term. Markets' perception about the power of PSUs has changed as they were underperformers earlier. Decks have been cleared for BHEL to manufacture indigenous super rapid gun mounts (or SRGM) for procuring 12 light utility helicopters from Hindustan Aeronautics Limited.

In September 2021 quarter, mutual funds and DIIs have marginally increased their holding in BHEL stock. The scrip has a mixed signal based on major technical indicators. While RSI and MACD look unfavorable for the scrip, the stock appears attractive based on 50-day/100-day/200-day EMA. In a year, the share gained 155.9%, 86.4% year-to-date, 9.9% in six months, and 8.1% in a month.
BHEL

2. Dabur India (NS: DABU ) Ltd

Dabur India Ltd manufactures and sells soaps, detergents, hair oils, tooth powders, antacids, and processed foods worldwide. No probability of the 3rd wave of the Covid19 pandemic should likely boost the management’s confidence about the future outlook. The company has guided for achieving an overall double-digit growth for FY2022 supported by high double-digit growth in foods business, double-digit growth in home & personal care division, and mid-single-digit in the health-care business. After a decent monsoon, rural consumption is expected to witness a V-shaped recovery aided by strong demand. Innovation, robust product pipeline, market share gains, and growth across segments should drive Dabur’s top-line growth ahead. New products contribute almost 5% of the company’s revenue. E-commerce which contributes around 8% of sales has been growing at 100% in recent quarters. Although the price hike won’t consume the full effect of the input cost rise, the company is expected to maintain its current EBIDTA margins driven by Rs 100 crore savings through the Samriddhi program. The company also continues to reduce its inventory pipeline quarter on quarter.

In the quarter ended September 2021, Dabur India’s net profit grew 4.71% to Rs 504.35 crore compared to Rs 481.68 crore during the previous quarter ended September 2020. Revenue jumped 12% to Rs 2,817.58 crore in the quarter as against Rs 2,516.04 crore during the corresponding quarter ended September 2020. Although DIL’s revenue and net profit CAGR isn’t double-digit, its return on equity appears better at 25%. The stock’s PE appears low compared to its peer group companies. FIIs/FPIs have steadily increased their holding in the stock in the last five quarters. The scrip has mixed signals based on key technical indicators.
      
 DABUR

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  • boopalan palani @boopalan palani
    sir, what about BHEL sir, it will rise or fall
    Like 0
    • Jinesh Doshi @Jinesh Doshi
      Jaja 😂
      Like 0
    • Jinesh Doshi @Jinesh Doshi
      Jaja 😂
      Like 0
    • Ganesh Chittalwar @Ganesh Chittalwar
      rise
      Like 0
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      100
  • Ratan Jain @Ratan Jain
    Above 600 it will fire
    Like 0
  • Dharm Singh @Dharm Singh
    Dabar when it will show Uptrend
    Like 0
  • Abdul Rehman shaikh @Abdul Rehman shaikh
    Thanks
    Like 0
  • Dileep Chakrawarti @Dileep Chakrawarti
    outstand understand
    Like 0
  • Dileep Chakrawarti @Dileep Chakrawarti
    outstand understand
    Like 0
  • Tr Surendhar @Tr Surendhar
    Thank u sir
    Like 0

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