This year India’s stock markets have emerged as one of the best performers with some stocks rising as high as 1,000% in the last 12-month period. The key equity indices Sensex and Nifty have returned around 30% in the corresponding time. There are a number of underlying blue-chip shares which have vastly outperformed theses indices even, including Maruti Suzuki, HDFC Bank, Reliance Industries, Bharti Airtel, Hindustan Unilever, Yes Bank, IndusInd Bank, Tata Steel, Adani Ports and Special Economic Zones. Recently on 27 December 2017, BSE Sensex made an all-time high of 34137.97 while NSE Nifty marked it a high of 10,552.4. Amid the high rise in the stock markets, we bring you four stocks to buy from Rs 50 to 150 and gain up to 22% in New Year 2018.
JSW Energy — Axis Securities
Shares of JSW Energy have returned over 50% in the last one year period. The research and brokerage firm Axis Securities has given an upside of 12% to Rs 100 from its recommendation price of Rs 90. Shares of JSW Energy are included in S&P BSE 200 index.
Trident — Axis Securities
Shares of Trident have risen nearly 60% in the last 12-month time and now Axis Securities has given a further upside of 22% to Rs 108 from its recommendation price of Rs 88. The stock of Trident is a component of S&P BSE 500 and is included in ‘B’ group of shares on Bombay Stock Exchange.
Gati — SMC
Shares of Gati have grown nearly 23% in the last one year to Rs 136.5 from a level of Rs 111. The research and brokerage firm SMC Global Securities has given an upside of 15% to Rs 158 from the recommendation price of Rs 137.65. “It is expected that the stock will see a price target of Rs 158 in 8 to 10 months time frame on a target P/E of 25x and FY19 (E) earnings of Rs 6.31, SMC Global Securities said in a report.
Federal Bank — IIFL
Shares of Federal Bank were among the top performers in the banking sector returning around 68% in the last one year. The research and brokerage firm IIFL has given a target price of Rs 130 which implies an upside of 19% from the current market price of Rs 109. “We expect the bank’s advances growth at 23% CAGR for FY17-19E led by growth in Corporate, SME and Retail portfolio, besides strong margins bode well for higher NII. Further, the bank looks well capitalized at capital adequacy ratio of 12.3% as of FY17 (RBI requirement of 9%). We recommend BUY on the stock with a target price of Rs 130 (1.7x FY19E ABVPS),” according to IIFL.