With the New Year just a few days away, CNBC-TV18 decided to bring you some great stock ideas for your portfolio in 2020. On CNBC-TV18 Special 20 Big Little Stocks, we have SP Tulsian of sptulsian.com with his top 5 stock ideas for the year 2020.
SP Tulsian is a well-known equity analyst. A fundamental analyst with more than three decades of experience, Tulsian has an acute sense of logic and is respected for his frank and forthright views.
Tulsian’s stock recommendations for the year 2020 are:
Talking about RIL, Tulsian said, “If you take a call on RIL and the expected EBITDA of about Rs 90,000 crore for the current year, and expected EBIT of about Rs 70,000 crore is giving you an excellent margin of safety. Induction of strategic investor in Reliance Jio and probably the IPO plans getting crystallised either for Jio or for retail, all these things will be seen given very good valuations. In fact, Rs 10,00,000 crore market capitalisation can rise to about Rs 12,50,000 crore market capitalisation in the next one year and that translates into a share price of about Rs 1,925 in 12 months.
On SBI, he said, "Bank's Q3 numbers are seen to be bumper as they will be booking the amount receiving for Essar Steel, Ruchi Soya, Bhushan Power and probably for Alok Industries. Chairman has already indicated that there won’t be about more than Rs 32,000 crore every year and evenly distributed of around Rs 8,000 crore every quarter that gives very good visibility. If you take all these parameters, probably FY20 will be a blast for the bank in terms of the earnings growth and in terms of the asset quality. This is the safest bet with a target price of Rs 405 in 12 months.
Tulsian is extremely bullish on the cement space, JK Cement is one of the largest cement players in North India. JK Cement the target price is Rs 1,400 in 2020.
He is extremely bullish for 2020 on the real estate sector. "Century Textiles is purely a debt-free company after having transferred the cement division. In Worli, the company has about 30 acres land which translates into or giving them developable area of 50,00,000 square feet. If you take the NPV of that about Rs 8,500 crore. They have 130 acres land in Kalyan, again company-owned, NPV of Rs 1,500 crore. This company is capable to post an EPS of closure to about Rs 30, and the target price of Rs 590 in 12 months."
While giving his take on Hindustan Copper, he said, "Hindustan Copper can really give the explosive return. It is the only integrated company which makes the copper from the copper ore mining to the finished product. It is a profit-making company, making a closure to a profit after tax (PAT) of about Rs 100 crore, debt is very less, debt to equity ratio is 0.4. There all the possibility of the divestment of inducting a strategic investor in the company which may happen in the next 12 months or in the next couple of years. This is an excellent natural resources stock and expects a target of Rs 46 in 12 months."
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