Here is a list of top 10 stocks to buy this Muhurat Trading day for a potential upside of up to 48% in Samvat 2074.
Samvat 2073 turned out to be a good investment year for equity investors and Samvat 2074 is unlikely to disappoint investors.
Analysts advise investors to remain stock specific rather than focussing just on the S&P BSE Sensex or the Nifty. High valuations and mixed macro data could bring short-term pain otherwise Indian markets are in a structured bull market.
Here is a list of top 10 stocks to buy this Muhurat Trading day for a potential upside of up to 48% in Samvat 2074:
Analyst: Achin Goel, Head of Wealth Management and Financial Planning, Bonanza Portfolio Ltd
National Peroxide: BUY| Target Rs2965| Return 48%
National Peroxide, controlled by the Wadia Group, is the largest domestic producer of hydrogen peroxide, with a current capacity of 95,000 MTPA and has a domestic market share of 45 percent.
National Peroxide is benefitted from Anti-Dumping duty as it has been levied on Hydrogen Peroxide for a period of 5 years on imports from six countries i.e. Bangladesh, Taiwan, South Korea, Indonesia, Pakistan, and Thailand. In India imports of hydrogen peroxide contribute nearly 20 percent of demand.Its market leadership position, new capacity expansion, the strong domestic demand of Hydrogen Peroxide makes us buoyant about NPL growth story. The stock trades at 23.3x its FY19E earnings.
Sintex Plastics Technology: BUY| Target Rs135| Return 48%
Sintex Plastics Technology Limited (SPTL), is a globally respected conglomerate with interests across building materials and custom moulding. The company enjoys global presence with 36 manufacturing facilities spread across India, Europe, North Africa & USA.
SPTL is currently trading at 12.4x FY17 EPS of Rs. 7.6 which is attractive considering other plastic companies like Nilkamal and Supreme Industries which are trading at a PE of 20 and 33 respectively.
The brokerage firm recommends a BUY call on SPTL at a PE 12x of 2019 EPS with a target price of Rs.135, upside of 48%.
V2 Retail: BUY| Target Rs 604| Return 15%
V2 Retail is engaged in the business of retail sales of garments, textiles, accessories and consumer durables products in India. V2 Retail has shown strong growth trajectory over FY15- FY17 with sales/EBITDA/PAT growth of 28%/19%/96%, respectively.
Operating margin improved from 0.7% in FY13 to 8.3% in FY17. The company currently operates in 13 states with 44 stores having a total retail area in excess of 5.25 lacs sq. ft.
On a net level, it added 15 stores in FY17 and going forward the management has given guidance that the company intends to add 25 stores per year with a revenue growth of 40% CAGR for the next 3 years.
Bonanza maintains FY 18/19 EPS to Rs.9.1/Rs.15.1 given the strong revenue growth visibility with a target multiple to 40x on account of improved growth outlook.
Capital First: BUY| Target Rs966| Return 27%
Capital First Ltd (CPL), is a leading Indian NBFC providing debt financing to MSMEs and consumers in India. CPL has financed over 4.5 million customers in more than 225 locations across India.
We believe with the good asset quality, market share gain in 2-wheeler and its ability to deliver strong earnings would benefit CPL to deliver strong sustainable performance and capitalize on emerging opportunities.
At CMP the stock trades at 2.87x its FY18E ABV and 2.51x its FY19E ABV. We value CPL at FY19E P/ABV multiple of 3.2x to arrive at target price of Rs 966, upside of 28 percent.
Pondy Oxides: BUY| Target Rs850| Return 38%
Pondy Oxides & Chemicals Limited (POCL) produces the highest quality lead and lead alloys and PVC additives which are supplied to battery manufacturers, chemical manufacturers and PVC extruded and moulded products
During FY 13-17, company revenue has grown at a CAGR of 21 percent and PAT has grown at a CAGR of 71 percent. We are expecting company’s revenue to grow at 18% CAGR for next 3 years as Lead demand in India will be strong.
POCL is trading at 11.7x FY17 EPS of Rs50.1 and 7.3x FY19E EPS of Rs80.6. The brokerage firm recommends a BUY call on POCL at a PE 10.5x of 2019 EPS with a target price of Rs. 850, upside of 42 percent.
Brokerage Firm: Axis Direct
APL Apollo Tubes: BUY| Target Rs2195| Return 15%
APL Apollo trades at an attractive 14.5x its FY19E despite reporting robust volume growth of over 42 percent CAGR over the last 10 years.
Further, having reported strong ROE of over 23% compared to its peers, it is still a better place to capture the fast-growing opportunities.
The brokerage firm believes that APL Apollo would grow at a faster pace of 21%/26/36% of Revenue/EBITDA/PAT CAGR than the industry over FY17-FY19E.
Dilip Buildcon: BUY| Target Rs867| Return 9%
Dilip Buildcon is one of the largest and fastest growing private sector road focussed Engineering Procurement Construction (EPC) contractors in the country.
The brokerage firm maintains their FY18/19 EPS to Rs42/51 given the strong revenue growth visibility with a target multiple to 17x to account for improved growth outlook and RoCE (return on capital employed) of the business.
With the monetisation of the BOT assets, DBL has delivered on its strategy of being focused EPC player in the infrastructure space.
Jagran Prakashan: BUY| Target Rs205| Return 20%
Jagaran Prakashan Ltd is a media company with businesses across printing and publication of newspapers and magazines, FM Radio, Digital, outdoor advertising, promotional marketing and event management.
Higher ad-spends are witnessed at a time of central and state elections which have aided revenue growth due to increase in campaign-related activities. The upcoming state elections in 2018, state and general elections in 2019 present significant opportunities.
The brokerage firm fee that Jagran is well placed to benefit from this opportunity given its presence across media segments.
Maruti Suzuki: BUY| Target Rs9298| Return 28%
Maruti Suzuki will be able to maintain its leadership position through new models pipeline, strong distribution network, and 2-year revenue visibility which makes the brokerage firm buoyant about the automaker's growth story. The stock is valued at 27x PE its FY19E earnings.
Capex guidance for FY18 stands at Rs4500 crore which will be towards new products, R&D, annual maintenance and building market infrastructure. The company has set up a dedicated vertical for acquiring land for dealerships in existing/new locations.
Minda Corporation: BUY| Target Rs183| Return 26%
Minda Corporation is a diversified auto-ancillary with product portfolio encompassing from safety Security and Restraint Systems. It caters to all key segments of PV, CV, 2/3W, tractors etc.
Minda Corp derived 39 percent of its revenues from Safety and Security Systems, 47% from Driver Information and Telematics Systems, 14% from interior systems in FY17. In terms of end market, 31% of the revenues were contributed by 2/3 wheeler, 36% from PV’s, 23% from CVs and 10% from the aftermarket.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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