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    Buy Ashiana Housing, Greenply: Vikas Sethi

    Synopsis

    Both the stocks are from the housing sector which is in the limelight these days

    In a chat with ET Now, Vikas Sethi, MD, Sethi Finmart, shares his wealth creation ideas. Edited excerpts

    ET Now: What are the two stocks on your radar right now?

    Vikas Sethi: The two stocks which I have chosen today are both from similar sectors. The sector is the real estate or the housing sector which is the limelight these days. The first stock would be an Ashiana Housing. This company is a small-sized company which mainly caters to smaller towns like Bhiwadi, Neemrana, Jamshedpur, Jodhpur, etc, and the company has done exceedingly well over the past few years. If you look at their March quarter results, their results were pretty impressive. The net profits have gone up from Rs 30 odd crore to Rs 110 crore and I feel with the kind of focus which the government has on affordable housing, locust housing and the recent recommendation of the Seventh Pay Commission, I think housing as a sector looks pretty promising and we have been seeing traction in most of the real estate stocks over the last couple of days. So I am bullish on the stock and the company’s financials are pretty solid. They enjoy pretty healthy balance sheet with negligible debt and high return ratios and the stock has also corrected significantly from its 52-week highs. It is quoting at around 50-55 per cent from its recent highs, so which gives you an opportunity to buy into the stock. I feel one should buy into the stock at the current levels of Rs 160-163 and my target would be Rs 275 in a year.

    The second stock again is from similar sector. The name of the company is Greenply Industries. This is a leading manufacturer of plywood, decorative laminates, veeners and MDF boards. This company has a very strong distribution network across India with around 40 branches and around 14,000 dealer network. The company has done pretty well over the past few years and I think with the government’s focus again on housing, this company is also going to be benefitted out of that and the other positive trigger would be in the form of the passage of the GST bill. If that gets through in this forth coming session of the parliament, this company would be a major beneficiary because they have got lot of competition from the unorganised sector. So all these companies would stand to gain if GST gets implemented and this again has pretty solid financials with low debt and high return ratios. So I am bullish on the stock and I feel one should be buying into the stock at the current levels of Rs 255-260 and my target in a year’s time would be Rs 350 on the stock.






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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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