If the second wave of Corona continues after May this year, it could have a major impact on the economy and the revenue of companies. In view of this apprehension, experts have selected 14 stocks for good returns in the long term.
Partial lockdowns and restrictions imposed by many state governments to halt the second wave of Corona may have some impact on the economy.
Rating agency Icra has now started estimating GDP growth and some reductions in corporate sector revenue.
Iqra reduced the country’s GDP growth to 10–10.5 percent in 2021–22 from 10–11 percent previously.
Global investment companies Goldman Sachs and Nomura had earlier cut their GDP estimates for the current financial year beginning April 1.
The government is focusing on renewable energy and investors can also switch their portfolio with stocks in this segment.
The company’s balance sheet is strong and its profit is also increasing.
Jubilant Ingrevia recently demerged from Jubilant Lifesciences. The stock is available at a price-to-earnings (PE) ratio of 17, which is very attractive for chemical stocks.
The Central Government plans to privatize DISCOMs in many states and CESC is already running DISCOMs in some cities like Kolkata. There are good opportunities to increase business for the company.
Existing levels in this company can also be invested as sales of its products are increasing continuously.
The company has a strong presence in APIs, segments such as specialty chemicals. With the market shifting to medical care, the company is expected to perform well.
Dr Reddy’s Laboratories
Dr Reddy’s, one of the country’s largest pharmaceutical companies, also contributes to Covid’s vaccine. Its valuation is still at a good level and there is an opportunity for investors.
Dr Lal Path Labs
Increased cases of corona have led to a boom in the business of diagnostic companies. Da Lal Pathlabs is a big company in this segment. Gaurav Garg of CapitalVia Global says that this stock could perform very well this year as well.
Hindustan Unilever (HUL)
The second wave of Corona is unlikely to have a negative impact on this well-known company in the FMCG sector. The company has a strong supply chain and its demand can also be sustained.
The stock has rebounded from its important moving average and is showing signs of picking up.
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