The rally in the Indian equities have beaten almost all the world markets time and again over the course of last one year except Hong Kong’s Hang Seng. The key benchmark indices Sensex and Nifty have grown about 24-25% in the last 12-month period. The upmove in the domestic markets has also seen few slumps with the very recent one continuing till now from the last 7 trading sessions in which Sensex has lost 3%. While those who were cheering the bull market so far in the current year 2017, there is a good news: the headline indices may return a further 20% gain in the next year 2018 too, riding on the back of growing corporate revenues and profitability, renowned investment advisor Sandip Sabharwal said.
Given a pick up in both consumer sentiment as well as demand led by infrastructure investments, 2018 should be very good for both top line and profit growth, Sandip Sabharwal of asksandipsabharwal.com tells FE Online in an interview, while sharing his outlook on the Indian economy. As investors remain in a continuous lookout for more and more investment avenues, we bring four mid-cap infrastructure stocks which you can buy to maximise the gains in long-term.
Shares of Nagarjuna Construction Company have jumped nearly 50% in the last one year. The research and brokerage firm Kotak Securities has given a ‘buy’ rating on the stock with an upside of 8.1% to the target price of Rs 134. “Healthy order book, stable margins and reasonable leverage is likely to lead to CAGR of 10% on revenues and 25% on reported PAT over FY17-19,” Kotak Securities said in a report.
Shares of Simplex Infrastructures have doubled the investors in the last one year. The stock of Simplex Infrastructures has jumped nearly 100% to Rs 566 from a level of Rs 292 a year ago, now, Kotak Securities has given a ‘buy’ rating with an upside of 17.9% to a target price of Rs 668. “With its diverse expertise, the company is well set to capitalize on the upcoming opportunities in roads, metros, affordable housing as well as industrial order inflows,” Kotak Securities said in a report.
Shares of KNR Construction have risen nearly 75% over the period of one year. Kotak Securities has given a ‘buy’ rating with an upside of 16.9% to a target price of Rs 322. “The company has a track record of beating its guidance and we expect the trend to continue looking at order book and order pipeline,” Kotak Securities said in a report.
Shares of PNC Infratech have grown over 65% in the last 12-month period. Kotak Securities has said to accumulate the stock and has given an upside of 2.3% to a target price of Rs 198. “PNC has a robust current order book of Rs 110 billion and has a robust pipeline of orders specifically in road space. This gives strong revenue growth visibility for the next 5 years,” Kotak Securities said in a report.