IndiaBulls Housing

The shares of IndiaBulls Housing has dropped from levels of Rs 1,400 to the current levels of Rs 796. The fall has come largely on the back of the liquidity crisis in the NBFC sector and the IL&FS fiasco.

Nothing much has change for IndiaBulls Housing though. The company continues to grow at solid growth rates of almost 20 per cent. What is most interesting is that at the current price of Rs 796, the dividend yield works to a healthy 5.27 per cent.

In fact, the company declares dividends almost 4 times every year. A further fall in the price of the shares is ruled out, given the fact that dividends paid by the company will support the share price.

The stock is available at a p/e of just 8 times one year forward earnings. A good undervalued stock to buy at the current levels.

Yes Bank

Yes Bank too is an undervalued stock, which has gone through severe price damage in the last one year. The shares have halved from levels of Rs 380 to the current price of Rs 190.

However, the problem with Yes Bank is that it has been plagued by numerous worries, including the departure of Rana Kapoor as the CEO from Jan 31, 2019. Apart from this there have been worries of under reporting of NPAs.

However, it is likely that we may see worries at the bank subsiding over the more longer term. The shares are definitely undervalued for the fourth largest private sector bank in the country. The one year forward p/e is less than times, making the stock attractive at the current levels.

Coal India

This is another stock that should be bought because it is largely undervalued. The company declared a dividend of Rs 7.25 per share recently and another Rs 10 per share dividend is likely later in Feb.

The total dividend paid results in a dividend yield of more than 7 per cent per year. This makes the stock attractive. The p/e of the stock is also under 9 times. The business prospects of the company are also good, given the fact that it is a cash rich company and almost has a monopoly over the coal mining business in India.

The shares of Coal India have fallen from a high of Rs 326 to the current price of Rs 227. At the current market price, the stock has very low risk. A good bet for the long term.

How shares in India are taxed?

In India, if you sell your shares before a period of 1 year, then short term capital gains of 15 per cent applies. On the other hand, if you sell the shares after a period of 1 year, then long term capital gains on shares apply. This is levied at 10 per cent currently.

It is important to note, that long term capital gains only applies, where the profits exceed more than Rs 1 lakh per year. It is hence very important to ensure that you plan the sale of your shares accordingly.

Disclaimer

This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.