moneycontrol India Stock of the Day (March 2024)

Bosch, Coal India, Ami Organics, Coforge, Shivalik Bimetal Controls Ltd, Aditya Birla Capital, Protean eGov Technologies, NTPC Ltd, Metro Brands, Vijaya Diagnostic Centre, Ramkrishna Forgings, etc.

moneycontrol is India's leading financial and business portal who does short (roughly 4 minute) Stock of the Day video pitches about Indian stock picks.

Indian stocks featured in their March Stock of the Day videos (from newest to oldest) and covered in this post include:

Bosch Ltd; Coal India; Ami Organics; Coforge; Shivalik Bimetal Controls Ltd; Aditya Birla Capital; Protean eGov Technologies Ltd; NTPC Ltd; Metro Brands; Vijaya Diagnostic Centre; Ramkrishna Forgings Ltd; Balaji Amines Ltd; Control Print; Sirca Paints; V Guard Industries Ltd; Cyient; & Aavas Financiers

General elections are being held in India from today until June 1, 2024 to elect the 543 members of the 18th Lok Sabha. The elections will be held in seven phases and the results will be announced on June 4, 2024 with Narendra Modi’s Bharatiya Janata party hoping to increase its parliamentary majority.

As discussed in more detail in our recent post covering Korean stocks and an investor profiled in the book The Warren Buffetts Next Door: The World’s Greatest Investors You’ve Never Heard Of, I am including price/book (most recent quarter) ratios from the Yahoo! Finance statistics page in posts.

And as previously mentioned:

Strategy Tip

Rees cautions investors not to confuse his tangible asset value with the book value figures that are commonly quoted on dozens of web sites, including Yahoo Finance. Book value can be inflated by intangibles like goodwill or obsolete inventory. “Book value is too dodgy, squishy,” says Rees.

Nevertheless, they are a quick and dirty statistic to help decide whether a stock is worth further investigating and doing the more complex tangible asset value calculation the investor profiled in the book performs.

I should mention again how Indian stocks always tend to have high valuations, but at-least three of the stocks in this post actually have double digit Yahoo! Finance price/book (most recent quarter) ratios while none of the other stocks have ratios below 1.00 (unlike with Korean and some Chinese stocks covered in previous posts) with the lowest ratio being 2.12.

However, I should point out that Yahoo! Finance gives the following data:

• Amazon.com Inc (NASDAQ: AMZN)'s Price/Book is 9.24 and the Forward P/E is 42.37.

• Netflix (NASDAQ: NFLX)'s Price/Book is 12.83 and the Forward P/E is 35.46.

• NVIDIA Corporation (NASDAQ: NVDA)’s Price/Book is 49.25 and the Forward P/E is 35.09.

• Tesla (NASDAQ: TSLA)’s Price/Book is 7.62 and the Forward P/E is 50.76.

• Walmart Inc (NYSE: WMT)’s Price/Book is 5.69 and the Forward P/E is 25.19.

Whether any of these valuations are justified is up to you to decide.

To make your life easier, this post includes:

• A quick description of the stock pick with links to the IR page and stock quote(s) on Yahoo! Finance.

• A link to any Wikipedia page (for what it might be worth…)

• The title of the moneycontrol Stock of the Day and their summary of what makes the stock pick interesting.

• The embedded video (again, they are usually 4 minutes long).

• A price/book (most recent quarter) ratio plus forward or trailing P/E and dividend yields linked back to the Yahoo! Finance statistics page.

• The latest long term technical chart linked back to Yahoo! Finance.

And as always, this post is provided for informational purposes only (and to make your life easier by providing you with relevant information, links, and charts). It does not constitute investment advice and/or a recommendation…

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Bosch Ltd

Bosch Ltd (NSE: BOSCHLTD / BOM: 500530) is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has in India the largest development center outside Germany, for end-to-end engineering and technology solutions.

The Bosch Group operates in India through twelve companies: Bosch Limited – the flagship company of the Bosch Group in India – Bosch Chassis Systems India Private Limited, Bosch Rexroth (India) Private Limited, Bosch Global Software Technologies PVT LTD, Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private Limited, BSH Home Appliances Private Limited, ETAS Automotive India Private Limited, Robert Bosch Automotive Steering Private Limited, Automobility Services and Solutions Private Limited, Newtech Filter India Private Limited and Mivin Engg.Technologies Private Limited.

In India, Bosch set-up its manufacturing operation in 1951, which has grown over the years to include 17 manufacturing sites, and seven development and application centers.

• Wikipedia (Robert Bosch GmbH)

• Bosch | Company Focused On Technologically Advanced Products | Stock Of The Day

  • Bosch, a leading diesel injection system manufacturer, continues to do well. Our confidence in the company remains strong because of robust demand in CV segment, its leadership position, and the emerging opportunities from technologically advanced products.

• Price/Book (Most Recent Quarter): 7.62

• Forward P/E: 45.25 / Forward Annual Dividend Yield: 1.62% (Yahoo! Finance)

Coal India

The state-owned coal mining corporate Coal India (NSE: COALINDIA / BOM: 533278) came into being in November 1975. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL, today is the single largest coal producer in the world and one of the largest corporate employer with manpower of 239,210 (as on 1st April, 2023). CIL functions through its subsidiaries in 83 mining areas spread over eight (8) states of India. Coal India Limited has 322 mines (as of 1st April 2023) of which 138 are underground, 171 opencast, and 13 mixed mines and also manages other establishments like workshops, hospitals, and so on. CIL has 21 training Institutes and 76 Vocational Training Centres. Indian Institute of Coal Management (IICM) as a state-of-the-art Management Training ‘Centre of Excellence’ – the largest Corporate Training Institute in India - operates under CIL and conducts multi-disciplinary programmes.

CIL is a Maharatna company - a privileged status conferred by the Government of India to select state-owned enterprises in order to empower them to expand their operations and emerge as global giants. The select club has only ten members out of more than three hundred Central Public Sector Enterprises in the country.

• Why Coal India Is Well Placed For Fresh Investments? | Stock of The Day

  • Operating under the Ministry of Coal, GOI, Coal India is the single largest coal producer in the world. The company fulfils ~79% of India’s coal production needs. It is also diversifying and expanding to other verticals under the ‘Coal to Chemicals’ business strategy, which will ensure greater value addition and long term sustainability for the company.

• Price/Book (Most Recent Quarter): 3.88

• Forward P/E: 5.53 / Forward Annual Dividend Yield: 6.78% (Yahoo! Finance)