Porinju knows that novice investors cannot be allowed to venture into Dalal Street unescorted. They will invariably buy junk stocks and burn their fingers.
So, to aid the thinking process, he has drawn attention to two top-quality stocks, namely, Everest Industries and Ramco Industries.
Both stocks are powerhouses with top-quality managements, though they are presently not in fancy amongst investors.
He opined that both stocks will do well given the huge boost that the housing and infra sector is going to get in the foreseeable future.
Everest Industries
About
| EVEREST INDUSTRIES LTD – KEY FUNDAMENTALS | |||
| PARAMETER | VALUES | ||
| MARKET CAP | (Rs CR) | 429 | |
| EPS – TTM | (Rs) | [*S] | 1.60 |
| P/E RATIO | (X) | [*S] | 173.75 |
| FACE VALUE | (Rs) | 10 | |
| LATEST DIVIDEND | (%) | 50.00 | |
| LATEST DIVIDEND DATE | 21 JUN 2016 | ||
| DIVIDEND YIELD | (%) | 0.39 | |
| BOOK VALUE / SHARE | (Rs) | [*S] | 225.94 |
| P/B RATIO | (Rs) | [*S] | 1.23 |
Pros:
- Company has been maintaining a healthy dividend payout of 24.37%
Cons:
- Company has low interest coverage ratio.
- Company has a low return on equity of 8.46% for last 3 years.
- Contingent liabilities of Rs.136.27 Cr.
- Company might be capitalizing the interest cost
