Diwali doublers: InCred gunning for 3 stocks that can gain up to 311% in 3 years

A bottoms-up stock analysis of companies with strong business momentum, healthy ROE/ROCE profile, at least 15% EPS CAGR for FY24-26F, and a forward PE/PBV valuation near mean/ below mean of the last 5-10 years shows 10 stocks can rally within 46-311% in 3 years.

In the bull case scenario, Globus Spirits can zoom 311% to Rs 3,515 if there’s a faster decline in broken rice and domestic energy costs, InCred said.

Here are the other top Diwali stock ideas from InCred Equities:

Camlin Fine Sciences
A spike in vanillin sales and easing loss from catechol to drive gross profit and stock rerating can make the stock go up to Rs 300, translating into a rally of 129%.

Cyient DLM
Success in new areas like clean energy, and EV battery safety can drive higher sales momentum and valuation rerating. Target price: Rs 1,413 in the bull case. Return: 121%.

Ajanta Pharma
A higher proportion of branded generics to drive profitability and PE rerating to 30x. Target price: Rs 3,000

Bharat Forge
17% sales CAGR can extend EPS of Rs 42 by FY26 and at 45xFY26F (20% premium to mean PE). Target price: Rs 1,890

Container Corp of India
DFC benefits from container movement benefit and at 16x EV/EBITDA FY25F. Target price: Rs 1,075

Data Patterns
Scope for higher sales from production contracts in export can extend sales growth of 50+%. Target price: Rs 3,850.

Mahindra & Mahindra Finance
Assuming a 10% beat to our estimates and a higher multiple, the stock can rally up to Rs 430.

Spandana Sphoorty Financial
The worst is behind on the asset quality front, with the overall collection efficiency now strong. A geographically diversified loan book will protect the company during a downturn. Target price: Rs 1,350 in the bull case.

Tech Mahindra
Assuming a 10% beat to our EPS estimates and a higher multiple of ~22x, the stock can go up to Rs 1,874.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Todays Chronic is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – todayschronic.com. The content will be deleted within 24 hours.

Leave a Comment