Top 4 Undervalued Stocks | Top 4 Stocks at 52 Week Low | Best 4 Stocks at 200 DMA | Strong Portfolio

RS FINTECH

21 Jun 202415:08

Summary

TLDRThe video script discusses the importance of expertise in the stock market for wealth creation, emphasizing the selection of stocks based on fundamentals rather than rumors or news channels. It introduces four undervalued stocks with growth potential across various sectors, including construction, banking, holding companies, and non-banking finance. The analysis covers each company's financials, market performance, and future prospects, suggesting these stocks could double in the next few years, offering valuable insights for long-term investors.

Takeaways

📈 The importance of expertise in the stock market for creating significant wealth is emphasized, suggesting that success comes from analyzing fundamentals and selecting stocks wisely.
📊 The script discusses the process of building a portfolio based on fundamentals and consistently adding to it monthly, which can lead to long-term wealth creation.
🏢 The first company highlighted is a construction sector company established in 1995, based in Hyderabad, specializing in infrastructure project development with a strong order book and efficient project execution.
🔢 The mentioned construction company has an order book of 53 billion and operates in 11 states in India, with total construction equipment and plants valued at 145 billion, indicating strong operational capabilities.
🏦 The second company discussed is a leading player in the private banking sector in India, offering a range of financial services including retail banking, treasury, corporate banking, and investment banking.
💼 The third company is a holding company with diversified verticals including recruitment, real estate, education, and matchmaking, and has investments in both listed and unlisted companies.
🚗 The fourth company is a non-banking financial company that started with vehicle financing and has grown to become a large finance company with high-quality assets and low NPL ratios.
📊 The script mentions that all four companies have shown consistent growth in sales and profits over the past five years, indicating strong business performance.
💰 The potential for these companies to double in the next three years is suggested, based on their current valuations and growth prospects.
📉 The current stock prices of the companies are mentioned, along with their historical performance and potential future targets, highlighting the undervalued status of these stocks.
📈 The video also promotes a monthly plan from StockAZ, a SEBI registered platform, offering various services to assist investors and traders in their stock selection and market analysis.

Q & A

What is essential for creating wealth in the stock market according to the script?
-Having expertise and following a disciplined approach to analyze fundamentals before selecting stocks is essential for creating wealth in the stock market.
What is the importance of fundamentals in stock selection as mentioned in the script?
-Fundamentals are crucial as they provide insights into a company's growth potential, helping investors make informed decisions about which stocks to hold for long-term wealth creation.
What is the first company discussed in the script and what segment is it related to?
-The first company discussed is KNR Constructions Limited, which is related to the construction segment and is based in Hyderabad.
What are the two main segments of KNR Constructions Limited?
-The two main segments of KNR Constructions Limited are roads and highways projects, and irrigation and urban development infrastructure management.

Outlines

00:00

📈 Importance of Fundamental Analysis in Stock Market Investing

The first paragraph emphasizes the necessity of expertise in creating wealth in the stock market. It discusses how understanding fundamentals leads to informed stock selection, which is crucial for long-term growth. The speaker introduces four undervalued stocks with potential for significant growth and encourages viewers to watch the entire video for insights into these companies' growth potential.

05:01

🏢 KNR Constructions Limited: Infrastructure Project Developer

This paragraph delves into KNR Constructions Limited, an infrastructure project development company based in Hyderabad, established in 1995. It operates in two main segments: roads and highways, and irrigation and urban development infrastructure management. The company has an order book of 53 billion with efficient project execution, leading to bonuses from clients. It operates in 11 states across India with a construction equipment and plant value of 145 billion. The company has a market cap of 100 billion, a dividend yield of 0.07%, and a face value of zero, indicating it is under control. The promoters have not taken any loans by pledging shares, which is a positive sign. The company has shown a consistent increase in sales and profits over the past five years, with a 20% CAGR return on the stock in the last five years. The current price-to-earnings ratio is 13, and the historical P/E ratio is around 17-18, making it an attractive investment with the potential to double in the next three years, trading above 700.

10:27

💼 StockAz: A Comprehensive Investment Platform

The second paragraph introduces StockAz, a SEBI registered platform offering a variety of services for investors and traders, including multiple plans, making stock selection easier and completing their investing and trading journey smoothly. The StockAz premium monthly plan, which usually costs 399, is available for free during a limited-time offer. The process to subscribe for free involves entering the coupon code CEO100. The paragraph also mentions a second company related to the banking sector, Kotak, a leading player in private sector banks in India, providing various financial services including retail banking, corporate banking, investment banking, stock broking, and more.

🏦 Kotak Mahindra Bank: Diversified Financial Services

The paragraph discusses Kotak Mahindra Bank's market cap of 35200 crores, a book value of 563, a dividend yield of 0.08%, a face value of 5 paise, and promoter holding at 25.9%. The bank has shown robust sales and profit growth over five years, with a CAGR of 14% and 20% respectively. Currently trading at a P/E ratio of 19, it is considered undervalued, especially when considering the 10-year median P/E ratio of 35-36. The bank has recovered from a temporary dip due to RBI's suggestion for online banking improvements and is expected to show significant growth in the long term, with a potential to double in the next two years, reaching levels above 3500.

🌐 Naukri.com: India's Leading Job Portal and Diversified Business Verticals

The third paragraph focuses on Naukri.com, known as Naukri India Limited, which operates in various business verticals including recruitment, real estate, education, and matchmaking. The company has shown a 17% growth in revenue and a 55% increase in profits over five years, providing a 24% CAGR return to investors. The current price-to-earnings ratio is 128, and considering the holding company's perspective, the stock is undervalued, trading at a price-to-book value ratio of 2.7, much lower than the 10-year median of 88.8. The stock has tripled the returns to investors over the past four years and is currently trading near 6400, offering a potential entry point for long-term growth with a target of 13000 in the long term.

🚗 Bajaj Finance Limited: A Giant in Non-Banking Financial Services

The final paragraph highlights Bajaj Finance Limited, which started in 1987 and has become the largest non-banking finance company in India with excellent asset quality. The company has a market cap of 4,41,000 crores, a book value of 1240, a dividend yield of 0.50%, and promoter holding at 54.7%. It has shown a 24% growth in sales and a 29% increase in profits over five years, with a 15% CAGR return in the last five years. The current price-to-earnings ratio is 30, which is considered undervalued compared to the 10-year median of 45. The stock is trading at a significant discount, with a current price of 10 and a 100% return over five years. The potential entry point is suggested at 7130, with a long-term target of doubling the stock price to over 14000, indicating a strong growth capability despite its size.

Mindmap

Keywords

💡Wealth Creation

Wealth creation refers to the process of generating a substantial amount of wealth, often through investment strategies. In the video's context, wealth creation is linked to the stock market and the importance of making informed decisions based on fundamental analysis. The script emphasizes that without expertise, one cannot create significant wealth in the stock market, highlighting the need for a strategic approach to stock selection.

💡Fundamentals

Fundamentals in the context of the stock market pertain to the underlying financial aspects and performance indicators of a company that influence its stock's value. The script mentions that expertise in the stock market comes from analyzing these fundamentals, which helps in selecting stocks with potential for growth, as seen in the companies discussed in the video.

💡Stock Selection

Stock selection is the process of choosing which stocks to invest in based on various criteria such as company performance, market trends, and potential for growth. The video script discusses the importance of selecting stocks based on fundamental analysis rather than hearsay or news channels, which can lead to more informed and potentially profitable investments.

💡Portfolio

A portfolio in investing refers to a collection of financial assets such as stocks, bonds, and cash equivalents that an investor holds. The script encourages building a portfolio with a focus on fundamentals and adding to it monthly, which can lead to wealth creation in the long term.

💡Undervalued Stocks

Undervalued stocks are shares in a company that are considered to be trading for less than their true value, based on an analysis of the company's financials and potential for growth. The video script discusses several stocks that are undervalued, providing an opportunity for investors to potentially buy at a lower price with the expectation of future appreciation.

💡Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits. In the script, the dividend yield of a company is mentioned as one of the financial metrics to consider when evaluating an investment, indicating the return on investment for shareholders in the form of dividends.

💡Face Value

The face value of a stock is the value of a share as indicated on the stock certificate, which may not necessarily reflect its market value. The script refers to face value in the context of a company's stock valuation, suggesting that the current trading price may not reflect the true intrinsic value of the company.

💡Promoters

Promoters are the individuals or entities that initiate and drive the establishment and growth of a company. In the script, the holding of promoters in a company's shares is mentioned as a positive sign, indicating their commitment and belief in the company's future prospects.

💡Consolidation

In the context of the stock market, consolidation refers to a period of little price movement after a period of significant price increase, indicating that the stock is taking a breather before the next leg up. The script mentions a consolidation period for a bank stock, suggesting stability and potential for future growth.

💡Recruitment

The script mentions 'n.com' as a vertical leading in the recruitment segment across India, indicating that it is a significant platform for job recruitment, which is one of the main verticals of the company discussed.

💡Real Estate

Real estate is a major industry dealing with properties. The script refers to '99acres.com' as a platform related to the real estate segment, providing information to students and potentially investors about properties, which is another vertical of the company mentioned.

Highlights

Importance of expertise in the stock market for creating significant wealth without which it is difficult to achieve.

The concept that expertise comes from analyzing fundamentals and selecting stocks that show growth potential in the coming years.

The risk of losing money by following news channels and gossip instead of focusing on fundamentals.

The strategy of building a portfolio with fundamentals in mind and adding money monthly for long-term wealth creation.

Introduction of four undervalued stocks with potential for growth and the importance of staying engaged with the video for insights.

Details about the first company, KNR Construction Limited, its establishment year, location, and its role in infrastructure project development.

KNR Construction's strong order book of 53 billion and its efficient project execution leading to bonuses from clients.

The company's presence in 11 states in India and its total construction equipment and plant worth 145 billion.

Reputation of KNR Construction with clients including government entities and other significant players in the industry.

Financial analysis of KNR Construction, including market cap, book value, dividend yield, and other valuation metrics.

The potential for KNR Construction's growth in the coming years due to the development happening in the country.

Introduction of the StockAce Premium monthly plan and the services it provides for investors and traders.

Details about the second company, Kotak, a leading player in the banking sector, and its diverse financial services.

Kotak's financial performance, market cap, dividend yield, and the strong holding of institutional investors.

Analysis of Kotak's stock price, its trading levels, and the potential for it to double in the next few years.

The third company, AJ India Limited, described as a holding company with its own business and investments in other companies.

AJ India Limited's main verticals, including recruitment, real estate, education, and matchmaking, and its investments in other companies.

Financial analysis of AJ India Limited, its growth, and the potential for the stock to triple in returns for investors.

The fourth company, Bajaj Finance Limited, its history, and its status as a large non-banking finance company with high asset quality.

Bajaj Finance's financial metrics, growth, and the stock's potential to double in the long term, considering its valuation and market performance.

Advice on investment分散ation across the four stocks and the importance of personal research before investing.

Offer for the StockAce Premium monthly plan subscription at no cost using the provided coupon code.

Closing remarks, encouraging viewers to like, share, and watch the full video for more insights on investing.