As India is busy celebrating the Diwali weekend, investors remain on a perpetual lookout for opportunities to invest. Indian stock markets continue to attract the newer participation from retail and institutional side. The key equity indices — Sensex and Nifty — have risen in a range of 22-24% so far in this year widely outperforming most of the global peers. The IPO (initial public offering) market has also seen some splendid public offers including GIC’s Rs 11,300 crore and SBI Life’s Rs 8,400 crore. Collectively about Rs 50,000 crore has been raised through public offers since January 2017. We bring you 10 stocks between the price range of Rs 100-150 which can return up to 51%.
NRB Bearing – ICICI Securities
Shares of NRB bearings have risen over 25% from January this year and ICICI Securities has given a further upside of 25% from its current market price of Rs 128 to a target price of Rs 160. NRB Bearing is a bearings manufacturer with focus on cylindrical & needle bearing. “With a recovery in the auto segment, we expect NRB’s topline and bottom line to grow at 9.8% and 14.2% CAGR in FY17-19E. We value NRB at 22x FY19E EPS of Rs 7.3 to arrive at a target price to Rs 160,” according to ICICI Securities.
Prabhat Dairy – ICICI Securities
Shares of Prabhat Dairy have returned nearly 40% in the current calendar year. The research and brokerage firm ICICI Securities has given an upside of 21% from its current market price of Rs 136 to a target price of Rs 165. “We estimate revenue for the company to grow at a CAGR of 16% over FY17-19E with EBITDA margin of 9.4% in FY19E,” according to ICICI Securities.
Manappuram Finance – IDBI Capital
The stock of Manappuram Finance has returned around 50% in 2017 so far and IDBI Capital has given an upside of more than 40% from the current market price of Rs 101 to the target price of Rs 142. “Manappuram Finance Limited is an NBFC (non-banking finance corporation) with second highest AUM (assets under management) with regard to Gold loans Rs 10,700 crore in the listed space,” according to research and brokerage house IDBI Capital.
Minda Corp – Escorts Securities
Shares of Minda Corp have risen over 60% since the beginning of January 2017. THe research and brokerage firm Escorts Securities has given a further upside of 51% from its current market price of Rs 138 to a target price of Rs 210. “Stock is trading at 21.2X to FY18E EPS of Rs 6.55 and 13.3X to FY19E EPS of Rs 10.46. We are valuing the company at 20X on a conservative basis. The Fair Value comes at Rs 210,” according to Escorts Securities.
Granules India – JM Financial
Shares of Granules India have returned over 25% so far in the nine-and-half-month period of 2017 so far. The research and brokerage firm JM Financial has given an upside of 26% to a target price of Rs 169. “Granules India has been incurring a huge capex over the past two years to expand its manufacturing capabilities and support its next leg of growth. Revenue realisations from these additional; facilities are expected to become significant from FY19 leading in ROCE. We expect strong cash flows, improving margins and steady growth across its business segments,” according to JM Financial.
SREI Infrastructure Finance – JM Financial
The stock of SREI Infrastructure Finance had returned over 50% since January 2017. The research and brokerage firm JM Financial has given an upside of 25% to a target price of Rs 142. “Management is focusing on diversification of its lending book to newer areas such as healthcare equipment, technology infrastructure and used vehicles to de-risk the business. Value unlocking potential in social rural infrastructure (Sahaj), and industrial parks (post tower sale and Bharat Road Network) offers key upside in our view,” according to JM Financial.
NIIT Ltd – Indiabulls Ventures
Shares of NIIT Ltd have returned nearly 30% in the present calendar year 2017. The research and brokerage firm Indiabulls Ventures has given an upside of 43% from its current market price of Rs 105 to a target price of Rs 150. NIIT Limited is a skills and talent development company. “The stock is fairly valued at 2.11x FY19 P/BV. We would like to assign a multiple of 3x FY19E P/BV on a BV of Rs 49.83 per share to arrive at a target of Rs 150 per share, “ according to Indiabulls Ventures.
Power Finance Corporation – Globe Capital Market
Shares of Power Finance Corporation have been flat since the beginning of 2017, risen nearly 5%. The research and brokerage firm Globe Capital Market has given an upside of 27% from its current market price of Rs 124 to a target price of Rs 157. Power Finance Corporation Limited (PFC) is a leading power sector public financial institution and a non-banking financial company registered with RBI.
Federal Bank – Globe Capital Market
Shares of Federal Bank have returned more than 80% in 2017 so far. The research and brokerage firm Globe Capital Market has further given an upside of 25% from its current market price of Rs 117 to a target price of Rs 147. “The company’s management expect the year on year loan book growth for the bank to be upward of 20-25% and sequential growth of 5 % as corporate growth continues to gain momentum,” according to Globe Capital Market.
Karur Vysya Bank – Angel Broking
Shares of Karur Vysya Bank have returned over 50% in 2017 so far. The research and brokerage firm Angel Broking has given a target price of Rs 180 implying an upside of 26% from its current market price of Rs 143. “KVB had a fairly strong loan CAGR of 14.9% over FY11-17. However, FY17 was year of consolidation and loan book grew by only 4.7%. We expect loan growth to pick up to 11% over FY17-19. Deposit growth is expected at 9% during the period,” according to Angel Broking.