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Sharekhan bets on these smallcaps with an upside of up to 31%

Broking house Sharekhan is betting on Greenpanel Industries, HealthCare Global Enterprises, KEC International, Affle India, Thermax and Greenlam Industries with an upside of 14-31 percent.

November 16, 2021 / 01:30 PM IST
Market witnessed range-bound trading throughout the day on November 15 amid positive global cues, however, ended on a flat note. Broader markets ended mixed. The BSE Midcap Index was up 0.4 percent, while the Smallcap Index was down 0.2 percent. Sharekhan bets on these small-caps for an upside of up to 31 percent.
Market witnessed range-bound trading throughout the day on November 15 amid positive global cues, however, ended on a flat note. Broader markets ended mixed. The BSE Midcap Index was up 0.4 percent, while the Smallcap Index was down 0.2 percent. Sharekhan bets on these small-caps for an upside of up to 31 percent.
HealthCare Global Enterprises | Rating: Buy | LTP: Rs 258 | Upside: 24 percent | With leadership position and sustainable business model, HealthCare Global Enterprises is a unique play in healthcare service providers. Strong visibility of margin improvement and focus on deleveraging the balance sheet gives us comfort about the stock. Consistent improvement in profitability would help the company to post consistent double-digit earnings growth in the medium term. We retain our Positive view on the stock with potential upside of 24% from the current level.
HealthCare Global Enterprises | Rating: Buy | LTP: Rs 258 | Upside: 24 percent | With leadership position and sustainable business model, HealthCare Global Enterprises is a unique play in healthcare service providers. Strong visibility of margin improvement and focus on deleveraging the balance sheet gives us comfort about the stock. Consistent improvement in profitability would help the company post consistent double-digit earnings growth in the medium term. We retain our Positive view on the stock with potential upside of 24% from the current level.
Thermax | Rating: Buy | LTP: Rs 1,633 | Target Price: Rs 1,860 | Upside: 14 percent | The company’s order book remains strong while order inflows have started picking up improving visibility going ahead. The management commentary on the enquiries pipeline remains positive for small ticket-size orders in waste heat recovery in cement and steel apart from large orders from oil and gas, FGD, and chemical. The international opportunities in Biomass, WHR, water desalination remain strong. Further, it has a strong balance sheet with healthy cash position which provides investment avenues in new energy technologies like hydrogen.
Thermax | Rating: Buy | LTP: Rs 1,633 | Target Price: Rs 1,860 | Upside: 14 percent | The company’s order book remains strong while order inflows have started picking up improving visibility going ahead. The management commentary on the enquiries pipeline remains positive for small ticket-size orders in waste heat recovery in cement and steel apart from large orders from oil and gas, FGD, and chemical. The international opportunities in Biomass, WHR, water desalination remain strong. Further, it has a strong balance sheet with healthy cash position which provides investment avenues in new energy technologies like hydrogen.
Affle India | Rating: Buy | LTP: Rs 1,199 | Target Price: Rs 1,400 | Upside: 16 percent | Affle India is better placed to capture opportunities from favourable industry tailwinds given its competencies in both in-app and on-device ecosystems, end-to-end offerings in the CPCU business model and a first-mover advantage in emerging markets. We forecast Affle India’s revenues and earnings to report a CAGR of 26% and 32%, respectively, over FY2022-FY2024E.
Affle India | Rating: Buy | LTP: Rs 1,199 | Target Price: Rs 1,400 | Upside: 16 percent | Affle India is better placed to capture opportunities from favourable industry tailwinds given its competencies in both in-app and on-device ecosystems, end-to-end offerings in the CPCU business model and a first-mover advantage in emerging markets. We forecast Affle India’s revenues and earnings to report a CAGR of 26% and 32%, respectively, over FY2022-FY2024E.
Greenlam Industries | Rating: Buy | LTP: Rs 1,410 | Target Price: Rs 1,818 | Upside: 29 percent | The company with its dominant industry position, strong domestic growth outlook, demand shift from unorganised to organised players and rising export opportunities is slated to see strong growth over FY2021-FY2024E. Further, Greenlam’s planned Greenfield capacity expansion plan along with expected expansion in product adjacencies would provide the next leg of growth.
Greenlam Industries | Rating: Buy | LTP: Rs 1,410 | Target Price: Rs 1,818 | Upside: 29 percent | The company with its dominant industry position, strong domestic growth outlook, demand shift from unorganised to organised players and rising export opportunities is slated to see strong growth over FY2021-FY2024. Further, Greenlam’s planned Greenfield capacity expansion plan along with expected expansion in product adjacencies would provide the next leg of growth.
KEC International | Rating: Buy | LTP: Rs 462 | Target Price: Rs 565 | Upside: 22 percent | KEC has been affected by losses in legacy orders in Brazil which is expected to complete by Q3FY2022. The domestic T&D environment remains weak while there are strong growth opportunities in international T&D space. The company’s strong order book and high order inflow visibility is expected to provide growth. The OPM would improve as new projects come under execution from Q4FY2022 onwards.
KEC International | Rating: Buy | LTP: Rs 462 | Target Price: Rs 565 | Upside: 22 percent | KEC has been affected by losses in legacy orders in Brazil which is expected to complete by Q3FY2022. The domestic T&D environment remains weak while there are strong growth opportunities in international T&D space. The company’s strong order book and high order inflow visibility is expected to provide growth. The OPM would improve as new projects come under execution from Q4FY2022 onwards.
Greenpanel Industries | Rating: Buy | LTP: Rs 389 | Target Price: Rs 510 | Upside: 31 percent. Greenpanel has strong structural growth drivers along with favourable environment led by weak imports affected by logistics issues. The strong demand environment has lead to passing off steep rise in raw material costs which has protected its gross margins. The company’s brownfield expansion along with anticipated another round of capacity expansion would provide healthy growth going forward.
Greenpanel Industries | Rating: Buy | LTP: Rs 389 | Target Price: Rs 510 | Upside: 31 percent. Greenpanel has strong structural growth drivers along with favourable environment led by weak imports affected by logistics issues. The strong demand environment has lead to passing off steep rise in raw material costs which has protected its gross margins. The company’s brownfield expansion along with anticipated another round of capacity expansion would provide healthy growth going forward.
Rakesh Patil
first published: Nov 16, 2021 08:38 am

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