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Which high risk stocks will give you high returns?

Senior VP Research of Anand Rathi Securities, DD Sharma terms Triveni Sheet Glass and Futura Polyester as high-risk - high return stocks. "In fact, risks are comparatively lower in Triveni Sheet Glass, but higher in Futura Polyester," he says.

Midcap Radar at 01:30 pm

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On Triveni Glass

DD Sharma

Senior VP Research

Anand Rathi Securities

Sharma gives his views on both the stocks and explains why he likes them.

Excerpts from CNBC - TV18�s exclusive interview with DD Sharma:

Q: What is it that you like about your Triveni Glass ?

A: Triveni Sheet Glass company is a turnaround case. It was into troubles for long, but a year earlier, it was granted the corporate debt restructuring (CDR), wherein it got significant relief in interest rate.

Now going by the project picture, the company has totally turned around and now it is on the growth path. Also, the main raw material for glass making is soda ash and fuel oil. The falling oil prices is positive for the company. ( Also Read: What are Sejal Doshi's favourite picks? )

The company has a marketcap of only Rs 50 crore, whereas its sales are around Rs 210 crore, which is likely to go up further. It has around 146 lakh square meter capacity for the float glass. It is also making glass for the automobiles.

The potential for auto glass as well as glass for home and offices is quite significant in India. Therefore looking at the profit potential, the valuation of this company is quite cheap. ( Also Read: Three smallcaps that you must buy now )

At Rs 50 crore market share, you are getting a company with Rs 210 crore sales, which may rise to Rs 250 crore to Rs 300 crore in the coming year, along with profit potential. On the EBITDA level, it could be between Rs 25- Rs 30 crore. So we think that this company can appreciate very well in the coming two years.

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