In the current stock market scenario, a selling atmosphere predominantly prevails. Despite this downtrend, experts have spotlighted two standout stocks as solid short-term investment choices: Carysil Ltd and Cigniti Technologies.
Market Overview: Continuously for several trading sessions, the stock market has been witnessing declines. The Sensex has slipped below the 65,000 mark, and Nifty is hovering around the 19,400 level. Over the past three weeks, foreign investors have been offloading their positions. This, coupled with global market sentiments, is leading to a weakened investor morale. In such turbulent times, Vikas Sethi of Sethi Finmart has specifically selected Carysil Ltd and Cigniti Technologies for short-term investors.
Spotlight on Carysil Share Price: Experts’ first pick is Carysil Limited, a company known for manufacturing plastic modules. Classified as a small-cap entity, the current share price stands at 645 rupees, showing an upward trend of 2%. Renowned for manufacturing kitchen sinks, this leading company boasts nearly 10% of the global market share and has also ventured into the kitchen appliance sector. For the short term, the targeted share price is 675 rupees with a stop loss set at 630 rupees.
Carysil’s Fundamental Analysis: The company is expected to reap the benefits of its recent capacity expansion in the upcoming quarters. The Return on Equity (ROE) is at 18%, and the Return on Capital Employed (ROCE) is at 21%. Valuation-wise, it is currently priced more attractively than its peers. Several prominent investors have shown faith in this stock. From its 52-week high of 740 rupees, the stock is currently available at a 12-13% discount.
Spotlight on Cigniti Technologies Share Price: The second expert pick is the small-cap software company, Cigniti Technologies. The stock is witnessing a robust surge, currently priced at 819 rupees, marking an almost 4% increase. The short-term price target is 850 rupees with a stop loss at 805 rupees. Specializing in software testing services, the company has clients in over 24 countries, including 60+ Fortune 500 companies.
Cigniti’s Fundamental Analysis: Cigniti has an impressive order book and robust fundamentals. Discussing return ratios, the ROE stands at 28%, and the ROCE is at 35%. With negligible debt and a P/E multiple of 12 times, the stock offers attractive valuations.
Disclaimer: The above stock recommendations are provided by brokerage experts and do not reflect the views of this platform. Always consult with your financial advisor before making any investment decisions.
