An Excellent Stock to look at: HB Portfolio

HB Portfolio Ltd. is engaged in the business of investment in securities. Its the wholly owned subsidiaries include HB Securities Ltd. and HB Corporate Services Ltd. The company was established in 1994.

The Stock has amazing fundamentals which can't be ignored:

1. Gross Margin - 96%
2. Net Profit Margin - 74%
3. P/E ratio - 7.4, which is very less as compared to the industry p/e of 42.
4. EV/EBITDA - 5.2 (Compared with Industry p/e of 32)
5. Dividend payout - 28.3%


It's current price is Rs 54 and fair valuation as per fundamentals is Rs 120.

P.S: The stock has already surged 18% during the day...so far!!


Cheers!!

Mid-cap picks

Yes Bank

Market Price: Rs 293.70

Target Price: Rs 405

It is growing at a faster pace than the industry. Loans grew 86% YoY and 16% Q0Q to Rs 30,300 crore, led by strong growth in infrastructure, agriculture and large corporate segments.

Reliance Communication

Market Price: Rs 126.15

Target Price: Rs 200

Potential cash inflows from monetisation of its tower assets and strategic stake sale could be positive triggers in the near term for reliance Communication. It's earnings estimates are 29% in FY 11 and 10% in FY 12 on lower depreciation, net finance cost and tax write back.



Cheers!!