4 Stocks That Investors Could Buy Next Week For Good Gains

Markets moved-up a bit this week and we believe the momentum could continue next week as well as the quarter draws to a close. The earnings season would also be underway next month and investors would gather clues on how inflation is hurting profits. Here are 4 stocks that investors could buy next week for potential gains in the longer term of 2-3 years.

Muthoot Finance

The stock of Muthoot Finance has dipped from levels of Rs 1772 to the current levels of Rs 984. The shares have now fallen to a p/e of just 10 time trailing EPS. Gold loans we believe would continue to do well, even in an era of rising interest rates. We do not believe that interest would rise beyond another 75 basis points in total in the next 1-year or so. The dividend yield on the stock of Muthoot Finance is also 3%, which is not bad. Given the fact that the stock is trading at a p/e of just 10 times and has potential of earnings growth we believe that this is a good stock to buy for the long-term.

Gulf Oil Lubricants

This is another stock that has fallen sharply in the market carnage. The shares are now available at a price to earnings ratio of just 9 times trailing EPS. Gulf Oil Lubricants is a top player in the lubricants space. The company recently announced a buyback of shares at a price of Rs 600 and the shares are today traded at just Rs 397. The dividend yield on the stock too is good making the stock a good buy at the current levels.

Manappuram Finance

This is another gold loan company, which has seen its share price dip sharply. The company has an excellent retail network and the loans business will continue to see robust growth. The shares of the company have slumped from levels of Rs 224 to the current levels of Rs 87. In fact, the shares recently hit a new 52week low of Rs 81.50. The stock of now available at a low p/e of just 5.4 times trailing EPS and a dividend yield of nearly 3.5%, which is not bad. We believe as the markets rally this is one stock that has the potential to

Sanofi India

This is a top player in the pharma space and again the shares have fallen sharply. Last year the company declared a dividend of Rs 490 per share, which takes the dividend yield on the stock to about 7.65%. However, on a more consistent basis the company tends to declare a dividend of Rs 350 per share or so, which takes the yield close to 6%. Last year's dividend was also on account of a sale of a business. The shares are now trading at a p/e of 14 times. The company is a leading player in the vaccines business. We believe the business model remains robust to generate good cash flows and hence regular dividends. Buy the stock next week for good dividends and potential gains.