Indian markets continue to consolidate in a slender range. On Monday, the indices ended lower led by losses in index heavyweights ICICI Bank, ITC and Reliance Industries amid largely weak Asian markets.
October’s retail inflation print eased to a three-month low in October but stayed above the Reserve Bank of India’s (RBI’s) comfort zone. Experts believe that investors should focus on stock-centric moves amid the ongoing volatility.
Yes Securities has recommended four stocks that it expects to deliver up to 29 per cent return over the next 12 months. Check out!
Target: Rs 610
Current Market Price: Rs 505.85
Yes Securities said it remains confident on CCL Products because of its strong footing in the international markets, cost-efficient business model, doubling of Vietnam capacity, new capacity addition in India leading to strong sales volume growth visibility for the next 2-3 years, capacity addition in value-added products and foray into high margin branded retail business.
It believes that CCLP’s domestic business has been showing some signs of picking up with the introduction of new variants and aggressive marketing in southern markets of India. It would continue to look for market penetration and expansion of the distribution network to boost growth. Entry into new markets will be the key focus area for the company.
Target: Rs 3250
Current Market Price: Rs 2695.90
The brokerage house believes that believe the company is well placed to attain its targets as it is focusing on increasing its distribution presence, and introducing new and innovative products across the product categories, along with investments in digital and backward integration would augur well for the company.
Also, Yes Securities added that the company looks well placed to keep gaining market share and grow faster than the industry, which should lead to continued re-rating.
Shriram Transport Finance
Target: Rs 1,625
Current Market Price: Rs 1266.65
Yes Securities believes that the company can target strong growth in the coming quarters by riding the CV upcycle and showing further improvement in asset quality. “This stock can get re-rated from the current levels as an outcome of sustaining improvement of AUM from new vehicle sales and consolidating strong performance in used vehicle sales,” it said.
Target: Rs 167
Current Market Price: Rs 129.15
Yes Securities said that the company is expected to generate a strong CFO of Rs 1100 crore over FY23-24E that would partially fund its planned capacity expansion, while the rest would be funded through debt. “Hence with a strong balance sheet, and growth levers in place we find Orient Cement in a sweet spot,” it added.
“Orient Cement commands a major presence in West/South & Central markets, armed with an 8.5MTPA cement capacity (5.5MTPA clinker). Further, a 3MTPA expansion project in Maharashtra & Telangana is in pipeline and expected to be commissioned by FY24E enhancing the access to Chhattisgarh, Maharashtra & South MP markets, thereby diversifying its geographical presence & enabling logistical optimization,” the brokerage house said in its latest report.
Disclaimer: Recommendations given by the experts are their own. These do not represent the views of Business Today.