Money spinners: 9 stocks IIFL is bullish on for 2017?

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26 Aug, 2025 12:21

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According to IIFL, India’s value proposition across all dimensions-demographics, domestic growth and liquidity, macros, pro‐reform government is the most impressive among emerging markets. It feels that will bring the FPIs back to India. It believes investors will look to FY19 as a more appropriate indicator of value for Indian equities.The brokerage firm says that even on assuming only 12 percent Nifty earnings growth in FY18 due to spill‐over of demonetisation, valuations are factoring much damage at price to earnings (PE) of 17 times.So, here are stocks to invest in 2017Apollo TubesTarget: Rs 1275Upside: 34 percentReasons: It is strongly placed to benefit significantly from the improved industry outlook, additional capacity in place and opening up of new business avenues.Despite the strong growth prospects, it is currently trading at a valuation of 5.2 times on FY19 EV/EBITDA.Can Fin HomesTarget: Rs 2100Upside: 23 percentReasons: Over the longer term, we see elevated NIM, strong loan growth driven operational efficiencies and leverage optimisation driving the franchise RoE towards the majestic 25 percent mark.Carborundum UniversalTarget: Rs 328Upside: 30 percentReasons: Higher execution coupled with expansion in margins would lead to 14 percent operating profit CAGR over FY16‐19. With earnings CAGR of 25 percent over FY16‐19, valuations are cheap at 17 times FY19 P/E.Great Eastern Shipping CompanyTarget: Rs 530Upside: 38 percentReasons: It has a sound track record of timing its ship sale and purchase. The number of its vessels will soon rise to 44 from 27 (FY14) after aggressive acquisitions in past 2‐3 years. Recent strength in dollar index augurs well for the company.Gulf Oil LubricantsTarget: Rs 858Upside: 27 percentReasons: With its marketing strategies, the company will continue to deliver 2‐3 times industry growth. With margin improvement, IIFL expects a net profit CAGR of 21 percent during FY16‐19. It believes the sector can command valuations akin to FMCG companies.IPCA LabsTarget: Rs 720Upside: 32 percentReasons: IPCA may witness 12 percent revenue CAGR alongwith margin uptick from operating leverage in the next three years. Domestic business would be driven by cardiovascular, pain therapies and record anti‐malaria salesMahindra Holidays and ResortsTarget: Rs 500Upside: 27 percentReasons: Expect annuity fees and resort income to sport a faster 15 percent and 23 percent CAGR respectively. It is the market leader in the vacation ownership (VO) industry with 0.2 million members and a portfolio of 46 resorts. It has a 3,000 room inventory.Minda IndustriesTarget: Rs 423Upside: 30 percentReasons: Valuations look attractive considering an expected 26 percent earnings CAGR during FY16‐19, marked improvement in return ratios, significant improvement in balance sheet strength and robust cash generation.PNC InfratechTarget: Rs 136Upside: 29 percentReasons: PNC will be a strong beneficiary of the pickup in order awarding in the roads segment. The asset light model would also help the company to bid for more orders without stretching its balance sheet significantly.