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Sureshot stock returns? Staying with Bharat, Hindustan may help

25 stocks that have either ‘Bharat’ or ‘Hindustan’ in their names gave 600% returns in 5 years.

, ETMarkets.com|
Last Updated: Sep 07, 2018, 12.55 PM IST
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25 stocks that have either ‘Bharat’ or ‘Hindustan’ in their names gave 600% returns in 5 years.
Who does not want a guarantee of not losing money in stocks? Here is a cue: neither ‘Bharat’ nor ‘Hindustan’ has given negative return to investors in the stock market in last five years.

A portfolio of 25 stocks that have either ‘Bharat’ or ‘Hindustan’ attached to their names delivered an average return of 600 per cent in last five years, 100 per cent in three years and 10 per cent in last one year.

Analysts still see value in many of these stocks.

Among the top gainers, Bharat Rasayan rallied 6,941 per cent to Rs 7,392.90 on August 28 this year from Rs 105 on the same day in 2013.

Among others, Bharat Seats, Bharat Financial Inclusion, Bharat Gears, Hindustan Petroleum Corporation and Bharat Earth Movers (BEML) have delivered between 500 and 1,350 per cent returns during this period.

Bharat Rasayan manufactures pesticides-technical, formulations and intermediates. For the latest quarter ended June 2018, the company reported 60 per cent year-on-year rise in net profit at Rs 24.98 crore against Rs 15.63 crore reported for the year-ago quarter.

Progressive Share Brokers has a ‘buy’ rating on Bharat Rasayan with a price target of Rs 9,000 over next 12 months.

Bharat Seats posted 60 per cent YoY jump in net profit at Rs 7.10 crore in Q1FY19. Hindustan Petroleum Corporation (HPCL) reported 86 per cent increase in first-quarter profit on strong refining margins. Net profit jumped to Rs 1,719 crore from Rs 925 crore YoY.

Brokerage firm Motilal Oswal has ‘buy’ ratings on HPCL and BPCL with price targets of Rs 426 and Rs 534, respectively.

Centrum Broking has a ‘buy’ rating on Bharat Financial Inclusion with a target price of Rs 1,439.

Shares of Bharat Forge, Hindustan Organic Chemicals, Bharat Bijlee, Hindustan Sanitaryware & Industries (HSIL), Bharat Petroleum Corporation and Hindustan Composite have rallied more than 300 per cent in last five years.

Brokerage Stewart & Mackertich is bullish on Bharat Forge with a target price of Rs 834. “The outlook for the company remains strong for the forthcoming years on the back of high growth in both exports and domestic market. To comply with the BS-VI norms, all vehicles are going to get costlier by 15-20 per cent due to which we see high potential in terms of pre-buy of new vehicles in the domestic market in the next two years. New Axle norms in India would create some disruptions in the short term but overall demand to stay healthy in the long term,” said Stewart & Mackertich in a report.

Pune-based Indian multinational Bharat Forge is a technology-driven global leader in metal forging, having a transcontinental presence across nine manufacturing locations globally, serving several sectors including automotive, power, oil and gas, construction & mining, rail, marine, aerospace and defence.

Hindustan Tin Works, Bharat Electronics, Hindustan Unilever, and Hindustan Aluminium (Hindalco) also more than doubled investor wealth in this period.

Progressive Share Brokers has a ‘buy’ rating on Bharat Bijee with a target price of Rs 2,000. Bharat Bijlee (BBL) is one of the leading players in the electrical engineering industry in India. The company operates through two divisions namely Power Systems and Industrial Systems.

The company produces transformers, electric motors, elevator systems, drives and automation. The manufacturing facilities of BBL are located at Airoli in Navi Mumbai.

“The company reported decent set of numbers on comparison with YoY numbers in June quarter. Maintaining our stance on the stock as a slow compounder and an SIP candidate, we maintain our target price of Rs 2,000 over a horizon of 12 months,” Progressive Share Brokers said.

Other stocks on the list include Bharat Immunologicals & Biologicals Corporation, Bharat Agri, Hindustan Construction Company, Hindustan Media Ventures, Hindustan Motors and Bharat Heavy Electricals also rallied up to 99 per cent during August 2013-18.

Brokerage IIFL last month gave a ‘buy’ rating on BHEL with a target price of Rs 86. The scrip was at Rs 77.70 on August 28. Shares of the company delivered just 2 per cent return over the past five years.
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