Good Long Term Stock Picks - June 28

Posted by admin in Companies, Mid Term Picks on Jun 27th, 2010 | no responses

Here are some good long term stocks recommended by brokerage firms this week-end. As the stocks are recommended mainly based on fundamentals you can only benefits from them if you have a long term view of one year or more.

Garware Polyester Ltd

CMP: Rs 101
Target Price: Rs 180
Brokerage Firm: Anand Rathi Securities
Expert Opinion: This share price might grow in the near future because of improved fundamentals and growing cash flow and reserves. There is a good chance that this firm will pay its debts in advance there by reducing its business risk.

JK Tyre & Industries

CMP: Rs. 166
Target Price: Rs 200
Brokerage Firm: Firstcall Equity Advisers
Expert Opinion: This share currently trading at attractive valuations of 3.75x its current finacial year earnings and 3.30x its next finacial year earnings (projected). The rubber prices have gron by 100% on an y-o-y basis. Hence the company was forced to hike its product prices upto 6.7%. If the rubber prices continue to grow then there might be some trouble with profits.

Yes Bank

CMP: Rs 272
Target Price: Rs 333
Brokerage Firm: Keynote Research
Expert Opinion: Yes bank is recording very good growth since the last five years. Recorded a growth of 96% in loan-book, 109% in deposits, 95% in balance sheet on CAGR basis. Mostly focusing on Mid-corporate, SME and Retail segments, and hence the net interest margins are stable at a healthy 3% rate. Yes bank has the highest capital adequacy ratio (CAR - 20%) in the private sector banks.