3 Stocks to Ride Over Tariff Uncertainty 

Last few days have been quite volatile for stock markets with all the noise around tariffs.

While the immediate threat seems to have been pushed aside, the story isn't over yet.

Tariffs may not directly hit India as hard as other nations. However, if the US - a major market for many global companies - dips into a recession, there will be ripple effects.

Instead of trying to guess who might win or lose from these trade games, I believe it's better to focus on companies that can stand strong through it all.

And here's the silver lining on tariff clouds- recent market corrections have brought down the prices of many quality stocks.

This makes it a great time to build a watchlist of companies that have solid foundation and long-term potential.

In today's video, I would like to talk of three companies that I think you should add to your watchlist

The first is DB Corp, one of India's leading newspaper companies, might not scream "growth stock" at first glance. After all, we live in a digital world, and print media has been losing ground for years.

But DB Corp is adapting. Its news app is already leading among Hindi and Gujarati users. Despite the headwinds facing the print industry, DB Corp has managed to grow both its circulation and ad revenues - beating the industry trend.

Even excluding the recent election bump, they're seeing steady mid-single-digit growth, thanks to ad spending from sectors like education, healthcare, real estate, and more.

Financially, the company is in a healthy spot. It has more cash than debt (net cash equals 19% of its market cap). It enjoys srong return on equity and capital employed ratios of above 20%. There is a generous generous dividend payout averaging 60% over the past three years, and a solid dividend yield of over 5%. The stock has dropped over 40%, brining its PE ratio below 10 times. Interestingly, the promoters have been buying shares from the open market - a vote of confidence. The recent buying has happened in the price range of Rs 215 to Rs 218.

Next on the list is Kovai Medical Center, a Coimbatore-based hospital that's doing more than just treating patients. With satellite centers nearby and even a medical college under its wing, this company with strong roots its soon likely to expand its branches. Kovai has become one of the top names in organ transplants and is now expanding into Chennai. This reduces the risk of relying too much on one location and opens the door for future growth - especially with India's medical tourism on the rise.

The best part? Healthcare doesn't get tossed around by global politics. Tariffs or no tariffs, people still need hospitals. And the demand will only grow in a country like India.

Here's what's working in its favour - Return ratios above 22%, low debt levels with a comfortable debt-to-equity ratio of 0.43. In the hospital space, it is one of the cheapest play in terms of PE ratio. The stock is down 13% from its 52-week high, with promoters picking up shares recently at prices between Rs 5,000 and Rs 5,895.

Last but not least, we have BLS International - a company that's carved out a niche in the global visa processing space. It operates in over 70 countries around the world. Only about half of all visa processing is currently outsourced, which means there's still a lot of room for growth for the company.But BLS isn't stopping there. It's also building a strong digital services arm in India, offering a range of solutions to citizens and businesses at the grassroots level.

Financially, it's in a decent shape: Its operating profit growth for 9 months ending December is up 78.3% YoY. The balance sheet remains debt light. The return ratios are above 25%. A

Of course, there are a few risks - like changes in visa rules by different governments, and how well the company handles its new acquisitions.

But for now, the numbers look promising.

Do note that these are just the names for watchlist. Today's discussion does not imply any view on the stock. Like any other business, each of these comes with some inherent set of risks that one should dig further into.

I believe instead of trying to predict the next big winner from global trade tensions or political drama, focus on strong, well-run businesses that are relatively insulated from such uncertainties will likely to have a better pay offs.

These three companies may not be the flashiest names on the stock market, but they've got the right mix of resilience, financial strength, and future potential. And in a market, that's seen some heavy corrections lately, that's exactly the kind of businesses to keep on your watchlist.

If you found this video informative, do press the like button. Let me know your feedback in the comment section. Subscribe to Equitymaster Youtube Channel for more such updates.

Thank you for watching. Goodbye.