Buy these 3 stocks under Rs 500 and gain up to 31%

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Updated: November 2, 2017 4:59:22 PM

As the key equity indices Sensex and Nifty are trading near record highs investors might be wondering that they have missed the opportunity to invest. We bring you three stocks under Rs 500 which can get you up to 31%.

Photo for representational purposes only.

As the key equity indices Sensex and Nifty are trading near record highs investors might be wondering that they have missed the opportunity to invest. Indian stock markets have seen very historical moments in 2017. This year the broader index Nifty 50 crossed the five-digit mark of 10,000 and recently breached 10,450 while Sensex had crossed 33,650 from the level of around 26,600 at the beginning of this year.

The IPO (initial public offering) market has also seen some big public offers including GIC’s Rs 11,300 crore, New India Assurance’s Rs 9,600 crore and SBI Life’s Rs 8,400 crore. Collectively about Rs 60,000 crore has been raised through public offers since January 2017 so far. We bring you three stocks under Rs 500 which may return up to 31%.

Sundram Fasteners — IDBI Capital

Shares of Sundram Fasteners have returned about 60% so far in this year. The research and brokerage firm IDBI Capital has given a further upside of more than 31% from its current market price of Rs 450 to target price of Rs 510. Sundram Fasteners has a track record of 40 years in manufacturing auto parts and components. “Auto Components Manufacturers Association (ACMA) expects the Indian auto components industry to reach a size of US $100 billion by FY20. This indicates huge scope for the auto components industry including Sundram as it is one of the leading manufacturers of fasteners,” according to IDBI Capital.

Asian Granito India – Angel Broking

Shares of Asian Granito India have doubled in the 10-month period of 2017 so far. The research and brokerage firm Angel Broking has given a target price of Rs 570 which implies an upside of 20% from its current market price of Rs 473.  “Going forward, we expect AGIL’s profit margin to improve due to increase in focus for higher vitrified product sales, which is a high margin business,” Angel Broking said in a report.

ICICI Prudential Life Insurance – IIFL

Shares of ICICI Prudential Life Insurance have gained about 30% in the present calendar year so far. The research and brokerage firm IIFL has given an upside of 27% to a target price of Rs 512 from its current market price of Rs 403. “A strong market and capital position, rapidly improving profitability metrics and potential upside to earnings from stronger franchise growth should place ICICI Prudential Life Insurance favourably among competitors,” according to IIFL.

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