I’m looking to add more FTSE 250 shares to my portfolio during March. This is in large part due to the rock-bottom valuations of many top blue-chip shares. It’s also because I’m looking to make the most of my £20,000 annual Stocks and Shares ISA limit before 5 April’s deadline.
I don’t have to buy UK shares straight away to capitalise on my allowance. I simply have to put money into my account. But why wait? By delaying, I might miss the opportunity to buy some high-quality shares at bargain prices.
Here are two I’m aiming to buy when I next have cash to invest.
Hochschild Mining
Owning precious metal stocks can be a brilliant way to create a diversified portfolio. When economic conditions deteriorate, prices of these safe-haven shares can soar, thus offsetting an investor’s losses elsewhere.
Hochschild Mining (LSE:HOC) is one such stock on my radar today. The gold and silver producer — which has operations across The Americas — trades on a forward price-to-earnings (P/E) ratio of 6 times.
Purchasing mining shares can be a high-risk business. Problems at the exploration, mine development and production phases can be common. And this can have a colossal impact on profits forecasts.
But I think the potential benefits of owning Hochschild shares outweigh the drawbacks, and especially at current prices.
What’s more, I’m encouraged by the FTSE 250 firm’s plans to turbocharge production. After the successful first pouring of gold at its Mara Rosa in Brazil in February, group production is predicted at 343,000-360,000 gold equivalent ounces in 2024. That’s up from the 300,749 ounces it recorded last year.
Hochschild has also targeted Brazil as a key growth pillar, and recently commented that “Mara Rosa will provide near-term production at a significantly lower cost, with strong potential to find additional resources through the Company’s brownfield exploration programme“.
TBC Bank Group
Georgia-based banking giant TBC Bank Group (LSE:TBCG) is another top growth share that looks massively undervalued today. Not only does it trade on a forward P/E ratio of just 4.7 times, the company also carries a chunky 7.6% dividend yield.
Like Hochschild, I think this FTSE 250 share has enormous potential as financial services demand in its emerging market booms. A combination of low banking product penetration and rapid economic growth could supercharge earnings for years.
TBC Bank continues to release stunning trading numbers that underline its investment appeal. In 2023, its net interest income jumped 26.8% year on year, driven by a 21% increase in the size of its loan book. A subsequent 7% rise in pre-tax profits encouraged it to raise the dividend 32% from 2022 levels.
Banks are cyclical businesses, and profits can dive if worsening economic conditions hit product demand and push loan impairments higher. But I believe the long-term outlook for TBC is highly attractive.
And things could get even better for the bank after the EU granted the country membership candidate status late last year.
