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Zee Business’ Managing Editor, Anil Singhvi Market Guru, Managing Editor spoke to Vikas Sethi, Managing Director at Sethi Finmart Pvt Ltd, for his two stock picks for today.  

Answering Anil Singhvi’s question, Sethi said, “As you were discussing earlier on textile stocks, I have suggested all the picks  mentioned by you, in a special programme on the occasion of Dhanteras and Navratri, especially KPR Mill, and Siyaram Silk Mill, Ambika Cotton Mill, Gokaldas Exports.”

“You were also talking about Hikal, which I recommended eight days ago at its initial level, from which it has reached great levels,” he added.

Here are the two picks by Vikas Sethi:  

Sethi said, “The first out of the two picks for me today is a mid-cap IT Stock, eClerx Services. Which is usually traded at the cash point level of Rs 2255 to Rs 2257. This company provides critical IT services to BFSI (Banking, financial services and insurance), telecom, retail, travel, and manufacturing sector.  Many companies from Fortune 500 category are on their client list.”

“They have solid fundamentals. Operating profit margin 26 per cent, return on equity 19 per cent, a zero-debt company. If you compare it with similar companies, it trades at a multiple of only 21 per cent. FIIs (Foreign Institutional Investor) and DIIs (Domestic Institutional Investor) have complete faith in this company with a stake of 34.8 per cent, among which HDFC, Nippon, ICICI Pru, Fidelity are prominent,” Sethi added.  

“Also, its September Quarter was very impactful, with a PAT (Profit After Tax) of Rs 100 crore. Last year it was Rs 61 crore. It has not just shown great growth year wise with more than 50 per cent growth, but also quarter wise,” Sethi explained.

eClerx Services

Short Term Target: Rs 2325

Stop Loss: Rs 2220  

BDL (BHARAT DYNAMICS LIMITED INDIA)

Sethi said, “The Second stock is from the Defence sector, BDL (BHARAT DYNAMICS LIMITED INDIA). The stock is currently priced at Rs 398. this is a PSU defence stock, which is known for its contribution in guided missiles, particularly Akash Missile. Along with it, it also manufactures many defence equipment like torpedoes, etc. It has a strong order book. The company has a good number of export orders.”

“Given that the Government is focusing on ‘Make in India,’ and defence system. The company is based on strong fundamentals with good operating profit margins and is a zero-debt company. The company had a great September Quarter with a PAT (Profit After Tax) of Rs 43 crores, which was Rs 26 crore last year in the same quarter. FIIs and DIIs own a stake of 18.3 per cent, out of which HDFC, LIC, and Ahuda Investment Authority,” Sethi added.

Short-term Target: Rs 415

Stop Loss: Rs 390

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