Stocks to buy with Anil Singhvi: Alembic Pharma and Tata Motors are Vikas Sethi's top two picks for good returns

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Zee Business Managing Editor Anil Singhvi, in the latest episode of ‘Sadabahaar Sethi Saab’ show, talked to market analyst Vikas Sethi and asked him to reveal his top picks that can generate good returns for investors who are on the lookout for smart deals. Sethi gave two calls today, one from the cash market and another from F&O space

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Cash Market Pick is Alembic Pharma (APL):

Alembic Pharma (APL) which trades at Rs 965 is an excellent company and it is a 100 year old company. Alembic Pharma business is in 3 segments, namely API, formulations and Bulk drugs. They have 9 plants and have incurred capex of Rs 1800 cr in past few years. The benefits of these investments will be visible in the coming quarters. Q3 FY21 results were extremely strong and the fundamentals of the company are extremely good, operating profit margin was 23%, Return on Equity was 25% and CAGR of profit for past 3 years is 25%. The target on Alembic Pharma in short term is Rs 1025 with stop loss of Rs 940. Investors should also think about investing in this stock for medium to long term.

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Futures and Options PIck is Tata Motors:

Sethi picked Tata Motors from Futures and Options segment. He said that the stock has corrected from the highs and is trading near Rs 324 – Rs 325 levels in Futures. Sethi said that Nitin Gadkari had said the scrappage policy guidelines will be disclosed in 15 days after the Budget announcements. Tata Motors has been trading in strong momentum and after consolidating for a while now it is ready to move further up. The target of Tata Motors Futures is Rs 340 with target of Rs 315.