- Date : 05/04/2023
- Read: 3 mins
A look at four Indian stocks that fit the value investing philosophy
The name Warren Buffett is synonymous with successful investing. He is a ready reference for any successful investor. However did you know that even the Oracle of Omaha had someone he looked up to in his formative years?
Benjamin Graham was an American investor who pioneered the concept of value investing, something that people like Mr Buffett and Charlie Munger swear by even today. His book on this concept, The Intelligent Investor, is the go-to book for value investing. His fall from riches to rags due to the Great Depression, and his subsequent rise, is a part of investing folklore.
Bengaluru-based stock research platform Market Smith drew inspiration and reference from the Benjamin Graham school of thought and cherry-picked a handful of stocks from the Indian stock exchanges. Here is a look at four such stocks.
Also Read: High flying stocks: these 10 shares reached a new 52-week high. Should you buy it?
Power Finance – Presently trading at Rs 155 per share, Power Finance has been generating revenue growth of around 6%, a pre-tax margin of 31% and a return on equity of 19%. The share is generating a YTD return of 10.52%, a three-year return of 81% and a five-year return of 77%. The share is presently trading at its 50-day moving average and is 18% above its 200-day moving average. It is ideally placed for purchase as it is trading 4% below its weekly base.
- Rural Electrification Corporation (REC) – REC shares are traded at Rs 117 at the time of writing. It is almost on par when compared to YTD. However, REC has generated a three-year return of 84% and a five-year return of 20%. The revenue growth of the company is presently 11%, while the pre-tax margin is 32% and the return on equity is 19%. The share is trading below its 50-day moving average and 8% above its 200-day moving average. Just like Power Finance, REC has broken out of the base on its weekly chart and is trading 7% below its pivot point. The study indicates that REC is at a good buying rate.
- HUDCO – Housing and Urban Development Corporation shares are being traded at Rs 44 per share. Its YTD return has seen a de-growth of over 14% and a 37% de-growth over five years. However, its three-year return is a healthy 133%. In terms of revenue, the one-year de-growth is 4%, while HUDCO has a pre-tax margin of 34% and a return on equity of 11%.
- Uflex – Uflex is an Indian MNC dealing in flexible packaging and solutions. Its current share price is Rs 362. The share is trading below its key moving averages. In terms of financials, Uflex registered an annual revenue growth of 48%, a pre-tax margin of 11% and a return on equity of 16%. Over 81% of HUDCO’s stake is held by the Indian government, i.e., the President of India.
Also Read: Will cost-cutting help in increasing FEDEX share prices: Let’s find out
The exact suitability of stock from a value investing perspective may differ from time to time. However, as an investor, you must understand the basic tenets of value investing and use them to identify the value stocks listed in the stock market.
Also Read: Key factors to consider investing in Indian IT stocks in 2023
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Source:
- https://economictimes.indiatimes.com
- https://www.investopedia.com
- Moneycontrol app
The name Warren Buffett is synonymous with successful investing. He is a ready reference for any successful investor. However did you know that even the Oracle of Omaha had someone he looked up to in his formative years?
Benjamin Graham was an American investor who pioneered the concept of value investing, something that people like Mr Buffett and Charlie Munger swear by even today. His book on this concept, The Intelligent Investor, is the go-to book for value investing. His fall from riches to rags due to the Great Depression, and his subsequent rise, is a part of investing folklore.
Bengaluru-based stock research platform Market Smith drew inspiration and reference from the Benjamin Graham school of thought and cherry-picked a handful of stocks from the Indian stock exchanges. Here is a look at four such stocks.
Also Read: High flying stocks: these 10 shares reached a new 52-week high. Should you buy it?
Power Finance – Presently trading at Rs 155 per share, Power Finance has been generating revenue growth of around 6%, a pre-tax margin of 31% and a return on equity of 19%. The share is generating a YTD return of 10.52%, a three-year return of 81% and a five-year return of 77%. The share is presently trading at its 50-day moving average and is 18% above its 200-day moving average. It is ideally placed for purchase as it is trading 4% below its weekly base.
- Rural Electrification Corporation (REC) – REC shares are traded at Rs 117 at the time of writing. It is almost on par when compared to YTD. However, REC has generated a three-year return of 84% and a five-year return of 20%. The revenue growth of the company is presently 11%, while the pre-tax margin is 32% and the return on equity is 19%. The share is trading below its 50-day moving average and 8% above its 200-day moving average. Just like Power Finance, REC has broken out of the base on its weekly chart and is trading 7% below its pivot point. The study indicates that REC is at a good buying rate.
- HUDCO – Housing and Urban Development Corporation shares are being traded at Rs 44 per share. Its YTD return has seen a de-growth of over 14% and a 37% de-growth over five years. However, its three-year return is a healthy 133%. In terms of revenue, the one-year de-growth is 4%, while HUDCO has a pre-tax margin of 34% and a return on equity of 11%.
- Uflex – Uflex is an Indian MNC dealing in flexible packaging and solutions. Its current share price is Rs 362. The share is trading below its key moving averages. In terms of financials, Uflex registered an annual revenue growth of 48%, a pre-tax margin of 11% and a return on equity of 16%. Over 81% of HUDCO’s stake is held by the Indian government, i.e., the President of India.
Also Read: Will cost-cutting help in increasing FEDEX share prices: Let’s find out
The exact suitability of stock from a value investing perspective may differ from time to time. However, as an investor, you must understand the basic tenets of value investing and use them to identify the value stocks listed in the stock market.
Also Read: Key factors to consider investing in Indian IT stocks in 2023
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
Source:
- https://economictimes.indiatimes.com
- https://www.investopedia.com
- Moneycontrol app
