There are many such stocks in the stock market which are cheap in price, but their fundamentals are very strong. Further they have the ability to race in the market.
Best Stocks Below Rs100: While investing in the market, one should look at the quality and value of the stock rather than its price. Many times the value of the shares which seem cheap in price can be more than the expensive shares. There are many such stocks in the market which are cheap in price, but their fundamentals are strong. Further they have the ability to race in the market. In two such stocks, brokerage house Emkay Global is looking bullish regarding CESC and LT Finance Holdings. The brokerage has advised investing in these stocks with an upside estimate of up to 60 per cent. The current price of these shares is less than Rs 100.
CESC
CMP: Rs 68
Target Price: Rs
While recommending investment in brokerage house Emkay Global Calcutta Electric Supply Corporation ie CESC, it has given a target price of Rs 108. In terms of current price of Rs 68, it can give about 60 percent return. The brokerage house says that based on the generation trend in Q1FY23, the standalone and conso earnings of CESC are expected to be better. In the last two years, the main reasons behind the loss of profits of the company were one of the reasons for not increasing the tariff and secondly the weakness in demand. Tariffs are also expected to increase in the coming days, while demand will be better. This will have a positive effect on profits.
The brokerage says that the demand has increased in the Kota circle, while the pricing power for the Dhariwal unit will benefit the company. Overall the stock is currently trading at 0.75x P/B of FY24E Book and 5.8x FY24E EPS. From here the stock is expected to rise. In the bear case, the share price may remain at Rs 74.
LT Finance Holdings
CMP: Rs 67
Target Price: Rs
Brokerage house Emkay Global has a buy call on LT Finance Holdings and has a target price of Rs 100. In terms of current price of Rs 67, it can give 47 percent return. The brokerage says that the focus of LTFH is on retail focused NBFCs. The company is working with an objective to limit exposure to the wholeleal finance business, especially the real estate finance business. LTFH estimates that by FY26, the company’s share in retail loans could be 80 per cent of the total loans. At the same time, there can be 26 percent CAGR growth in retail loans during this period. LTFH is also focusing on inorganic opportunities to strengthen the business.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
