At the start of the year 2021 market is boom run, as the world has found a vaccine against the covid-2019 Virus, America has elected a new president, and no signs of war between any nations. Information Technology (IT) and Pharmaceuticals company’s stock had made money of the investors for last 8 months and rally is still ongoing. But we had found 5 stocks that are at undervalued levels and could give investors multi-bagger returns if hold for the long term. Here is a list of 5 stocks that are undervalued we think and can give good returns in the Long-term should be in every investor’s portfolio holdings.
1) Indian Oil Corporation Limited:
Indian Oil Corporation's current market price is Rs. 97 it has a good dividend yield, the stock at this level looks attractive for the long term, the stock all-time high is Rs 230 we expect this target to be easily achievable if hold for a period more than 3 years. Government Holds more than 50% of the stake hence it is PSU and has the potential to give an excellent return on investment rather than fixed deposits and recurring deposits in the bank.
2) ITC Limited:
It was founded in the year 1910 as Imperial Tobacco Company of India Limited the stock is currently trading at the levels of 213 we expect at least 67 percent returns on investment from current to its all-time high of rs 370 the company is one of the big conglomerate multinational company. It gives decent dividends but the stock looks good at these levels one must accumulate it on every dip, for the long term.
3) PTC India Ltd :
Power Trading Corporation of India is one of the best stocks for investors who are always wanted fixed income in a way of dividend, the stocks have a high dividend yield with trading below both of its book value and intrinsic value as well. The company has reduced debt substantially a few months ago and we expect this counter to bounce back as it is trading around Rs 59 and has the potential of being double up and our target is Rs 130 for the next 2 years.
4) Oil India :
We expect the Government of India to look at PSU Company’s as they are far undervalued. Oil India is one of the giants in the oil exploration sector and gives investors a health dividend yield of 9.32% over the years. The stock is trading at the level of Rs 114 which is less than its book value and intrinsic value. If we compare the net profits of the company from the year 2017 then it is in an upward direction increase in profit on YoY basis what we look for. As Crude prices are stable now we expect this business to breach it's 52 weeks high and trade above it.
5) REC Limited :
Rural Electrification Corporation of India Limited (REC) is a must-buy under PSU for your Portfolio holdings. The stock P/E is 4.55 and is trading below its book value. The company has given a good dividend yield of 7.72% over the years. The company never had a loss over a decade and is consistently increasing the profit which is the reason the investors are happy. New Reforms in the Budget might boost such PSU to cross above its 52 week high levels and trade above.
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You can also read our article Top 3 Stocks to Invest in the Year 2021
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Indian oil very good because of indian product.
Yes, and it has a good dividend yield also if hold you might get a bonus again also.
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