Low Priced Stocks ?

Always tempting ! The scope penny and low price stocks offer for appreciation is tempting for most traders and investors. Business Today, in November, came out with a interesting article on 10 stocks under 50. Here is the 4 of the 10 that I like. With it is the Business-Today description of the stock

# Ashok Leyland

This truck maker is a big company with a Re 1 face value share (the minimum allowed). With commercial vehicles in increased demand because of India's industrial spurt, it is expected to turn in a performance even stronger than that of 2003-04. "Ashok Leyland is not expensive in relation to its earnings," says Rajeev Thakkar, Head of Research at Parag Parikh Financial Advisory Services. Interest rate and oil price rises, though, could hurt.

# Shanthi Gears

Another stock with strong potential. This Coimbatore-based company, reputed for industrial gears (which includes boxes, motors and assemblies), caters to a wide range of industries, from steel and cement to chemicals and textiles. "The management of Shanthi Gears is rightly expanding its capacities to leverage its pre-eminent position and brand image to capture the revival in its user industries," says S. Ranganathan, an auto analyst with LKP Research.

# Deepak Fertilisers & Petrochemicals

This has been a victim of misperception. It is treated just as a fertiliser company, and gets clubbed by analysts as such, though it is getting a fast increasing share of revenues from its chemicals business. Further, it is a consistent dividend-paying company, and can boast a yield of more than 5 per cent.


# Lakshmi Precision Screws

A cyclical gainer. In the rush for automotive fasteners, investors ignored industrial fasteners (hence its low p/e multiple). But the expected industrial recovery in India, together with its increased focus on exports (38 per cent of revenues for the year ending March 2004), could see this firm stage a resurgence


Disclosure: I dont own any of the stocks listed above. I will probably buy Ashok Leyland very shortly

Broker houses' recommendations

Of the few stock broker houses' recommendations that I have access to, I find Sharekhan, HDFC sec to be more researched. They have good 'hit-miss' ratios. Both of them publish their recommendations for public and not just their subscribers. Maybe you people want to have a look at them. Any other good broker house recos ? Comment please !