Buy Camlin Fine Sciences, SML Isuzu, KPIT: G Chokkalingam

G Chokkalingam of Equinomics Research & Advisory expects Indian stock markets to stabilise soon and outperform global markets in next 15 months.

Below are his new stock ideas:

Camlin Fine Sciences is engaged in the business of performance industrial chemicals and food antioxidant. This is a good company and the stock has undergone 30 per cent correction and return on capital employed for FY15 was 29 per cent.

KPIT is trading at low price to earnings ratio of 10 times. The recent correction provides good opportunity to enter the stock.

SML Isuzu has corrected a lot. Its Japanese parent company which has 48 per cent stake in the company has good opportunity to increase stake in the company. Otherwise, also company has been doing very well as it posted good numbers in the last quarter.

Top picks

Larsen & Toubro is costly at current levels. But it has corrected nicely. If you believe that market is going to improve then you have to be in a high beta stock like L&T. Any revival in economy or stock markets has to accompany the revival of capital goods sector. As and when rate cut happens L&T will bounce back.

Motherson Sumi is a great company. The market cap has gone up 10-fold in last five years. I have been advising retail investors that if you have missed a multi-bagger idea don't chase them. After the recent fall, the stock is still at 20 times price to earnings ratio.

J B Chemicals: One can buy J B Chemicals on further declines below Rs 250 levels.

Coal India: Coal India has corrected 28 per cent and one more special dividend is quite possible. Company has cash left and is highly safe investment.

J K Tyre, MRF: Look at buying JK Tyre around Rs 100-101. The recent acquisition of Kesoram Industries' Haridwar unit will not create major stress. Natural rubber prices are also coming down which is also positive for the company. One can also look at buying MRF near Rs 38,000.