5 steps to wealth from low priced Indian stocks

 

Buy Indian Hotels. This is a Tata group. The Taj group of hotels is run by them. Indian Hotels is on an expansion spree. The stock is quoting low now. It is a good time for investors to but into this stock. Right now nothing much is happening in this counter. Unconfirmed reports indicate a Rights’ Issue offering. Also the long term prospects of this stock are good.

Healthcare is doing badly in India now. Hospital chains are reporting sluggish quarterly results and the year-on-year returns are not moving in tandem with other sectors. Fortis Healthcare is a good bet at the prices it is presently quoting at. They are trying to expand their bed-capacities and also increase their presence in the South. Fortis has bought the Mallar group of hospitals and talks are on with similar healthcare chains. Over time this counter will perform well. Fortis is primarily a North Indian chain and is a part of the Ranbaxy group.

Asthma and related diseases are on the rise. The demand for ‘spacers’ and pressurized steroid inhalers are increasing. Cipla is thus a good bet. But again nothing is happening in that counter now, nor does it appear there will be any spurt in share-prices in the near future. This stock is for the really patient investor.

HCL Technologies is very promising for the long term. The recent battering that the IT sector has suffered due to the rupee-dollar crisis has forced the share-price down for the moment. But this is only temporary. Now is the right time for the cost-savvy investor to enter into this stock.

Reliance Natural Resources Limited, an Anil Ambani group, is still available at competitive prices. One should enter this counter with the aim of holding on to it for a long time. This company is now in the process, albeit long drawn, of settling its scores with the Mukesh Ambani held Reliance Industries and Reliance Petroleum Limited.

Notes:

The Warren Buffett way of very long-term investing is best for investors who do not have the inclination or the time for regularly monitoring stocks. The above mentioned stocks are very long-term bets. Invest in them only if you do not need the cash now.

Noida Toll Bridge is a good stock quoting at attractive levels but I have not mentioned it here for I have discussed it earlier in another post.

Please read a previous post by me for some disclaimers and statutory warnings. I take no responsibility if any or all of these stocks nose-dive. Please invest at own risk.

Image: PFC Capital