Hot stocks to explore now: Gujarat State Petronet and TTK Prestige

Since April 2020, after the March crash, the markets have rallied spectacularly. A number of reasons are being given for this fantastic rise in the markets: a liquidity rush to fight the pandemic, a receding pandemic, an economic rebound, good profit numbers of listed companies, etc. So far so good. However, for the serious stock investor, perhaps the biggest challenge is where to invest in a bull run. With stocks and their valuations growing wings, your best investment ideas seem to be out of reach. In this series of articles, we bring to you stocks that have given better returns than the Sensex over the last one year but are still available at a discount to their historical valuations. In order to arrive at these stocks, we applied the following filters: Market cap more than Rs 1,000 cr EPS growth of more than 15% pa over the last five years Current and five-year average ROE & ROCE more than 15% (for finance companies, only ROE) Positive cash flows over the last five years (not applicable for finance companies) Trading at a discount or a premium of less than 10% from 5Y median P/E (P/B for finance companies) From the list of stocks that we so obtained, here are two large ones. Gujarat State Petronet: The power of network Promoted by Gujarat State Petroleum Corporation (GSPC), Gujarat State Petronet Limited (GSPL) was set up