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Slideshow | Top 5 stock ideas by BP Equities for 44-118% returns in 12-18 months

La Opala, GM Breweries, IG Petrochemicals, CDSL and BSE are the 5 stocks which BP Equities is recommending for up to 118 percent return.
Apr 9, 2020 / 02:18 PM IST
Here are 5 stock listed by BP Equities which can return 44-118 percent in 12-18 months:
Here are 5 stock listed by BP Equities which can return 44-118 percent in 12-18 months:
 La Opala RG: Buy on dips | CMP: Rs 151 | Target: Rs 230 | Return: 50%  - La Opala is the segment leader with a healthy balance sheet. Changing Industry dynamics, higher-margin products and more discretionary spending on their products translate into good earnings growth for the company going forward.
La Opala RG: Buy on dips | CMP: Rs 151 | Target: Rs 230 | Return: 50% - La Opala is the segment leader with a healthy balance sheet. Changing Industry dynamics, higher-margin products and more discretionary spending on their products translate into good earnings growth for the company going forward.
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GM Breweries: Buy on dips | CMP: Rs 330 | Target: Rs 476 | Return: 44% - Consumer outreach provides visibility and higher thrust for future growth. Estimate revenue and PAT to grow at 12% and 15% CAGR for FY19- FY21E respectively.
 IG Petrochemicals: Buy | CMP: Rs 102 | Target: Rs 223 | Return: 118%  - Possibility of further contraction in the margin is minimal and the brokerage sees a positive reversal in margin going forward as spreads improve. Stock is available at 4.9x FY21E EPS of Rs 20.2. Value the stock based on a 15-year average P/E of 11x to its FY21E earnings.
IG Petrochemicals: Buy | CMP: Rs 102 | Target: Rs 223 | Return: 118% - Possibility of further contraction in the margin is minimal and the brokerage sees a positive reversal in margin going forward as spreads improve. Stock is available at 4.9x FY21E EPS of Rs 20.2. Value the stock based on a 15-year average P/E of 11x to its FY21E earnings.
 BSE Ltd: Buy | CMP: Rs 296 | Target: Rs 444 | Return: 50%  - The brokerage expects BSE’s revenue to increase at a CAGR of 11.5% driven by its investment in future growth drivers like INX, Insurance distribution, SME and StAR MF over FY20-22E. It is a debt-free company with healthy liquidity with a very attractive dividend yield of 12%.
BSE Ltd: Buy | CMP: Rs 296 | Target: Rs 444 | Return: 50% - The brokerage expects BSE’s revenue to increase at a CAGR of 11.5% driven by its investment in future growth drivers like INX, Insurance distribution, SME and StAR MF over FY20-22E. It is a debt-free company with healthy liquidity with a very attractive dividend yield of 12%.
CDSL Ltd: Buy | CMP: Rs 217 | Target: Rs 329 | Return: 51% - Strong business model, diversified revenue stream, robust cash flow generation, new avenues of insurance and academics provides significant opportunity to increase its revenue and expand margins, the brokerage feels. Transactions charges/KYC revenue is expected to revive with retail participation and improve market sentiments. New revenue streams like NAD and e-warehouse receipts are future growth drivers, it said.
CDSL Ltd: Buy | CMP: Rs 217 | Target: Rs 329 | Return: 51% - Strong business model, diversified revenue stream, robust cash flow generation, new avenues of insurance and academics provides significant opportunity to increase its revenue and expand margins, the brokerage feels. Transactions charges/KYC revenue is expected to revive with retail participation and improve market sentiments. New revenue streams like NAD and e-warehouse receipts are future growth drivers, it said.
Moneycontrol News
first published: Apr 9, 2020 02:18 pm

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