There can be no better alternative to stocks which are sector leaders and are available at very attractive valuations. Not very often we get opportunities where the market leaders are trading at discount to their intrinsic values. InvestorZclub has compiled a list of stocks which are leader in the sector they operate in but are available at the bottom range of the historical valuation due significant fall in stock prices.
The stocks listed in the above table are significantly down from their five year high and are trading at very attractive valuations. The 5 year high and low prices have been adjusted for splits and bonuses.
Take the case of Hindalco. It is the largest copper and aluminium producer in India. The stock at current market price is trading at 35 percent discount to the forward year book value. ICICI Bank, the largest private sector bank is down 42% from 5 year high and is trading at less than 1.5 times forward year book.
If an investor's horizon is 2 years plus, then one can start accumulating above shares gradually and sit tight for next two years. Each of the above stocks have the potential to deliver in excess of 50% return in two years time frame.