The 12-15-20 investment formula can make you a millionaire!
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At the time when the benchmark equity indices are hovering at their record high levels, Angel Broking suggested more than 15 stocks which can give you lucrative return going ahead. The 30-share BSE index traded 305 points or 0.58% higher at 53,209 in the morning deals on Thursday, while the broader NSE Nifty rose 79 points or 0.50% to 15,932. Here’s is the list of top stocks which can give you up to 43% return in the present market scenario. Have a look:
IDFC First Bank | Buy | Target price: Rs 77 | Upside: 43%
The brokerage believes that efforts to build a liability franchise, fresh capital infusion and provision have taken on the wholesale book will help to tide over this difficult time. The IDFC First Bank is trading at a significant discount to historical average valuations.
Quess Corp | Buy | Target price: Rs 1,060 | Upside: 40%
Quess Corp is one of India’s leading human resource companies offering a range of solutions to employers for fulfilling their hiring requirements. The company is in the fast-growing field of providing staffing solutions to companies and has registered a revenue CAGR of 52.6% between FY16 to FY21. Revenues for the company were impacted due to the lockdowns in the first half of FY21. However, the company has registered strong growth in the second half due to increased demand for staffing as lockdowns were eased. Though there could be some impact on revenues in the June quarter due to the second Covid wave. We feel that it will be temporary in nature and the company should register strong growth for the rest of FY22 as there is a growing trend of outsourcing some of the non-core positions post the pandemic. Moreover, Quess Corp is trading at a P/E multiple of 20.0xFY23 EPS which is at a significant discount to Team Lease despite having similar return ratios.
Jindal Steel and Power | Buy | Target price: Rs 550 | Upside: 39%
Jindal Steel & Power (JSPL) is one of India’s largest iron and steel companies with an installed capacity of 8.6 million tonne at the end of FY2021. The global steel cycle has turned around due to the normalisation of demand in developed economies due to the reopening of the economies. This has led to a significant increase in demand for steel which in turn has led to record high international steel prices. Moreover, China’s focus on limiting domestic production and removing export rebates for various categories of steel has also led to a fall in Chinese exports which has led to lower domestic prices in China but have led to the firming of international steel prices. JSPL has posted a very strong set of numbers in the March quarter due to firm domestic prices and the availability of low-cost iron ore from Sarda mines. The company has also been deleveraging its balance sheet with net debt expected to come down to around Rs 12,600 crore by FY2022 which should lead to a re-rating in the stock.
Escorts | Buy | Target price: Rs 1573 | Upside: 32%
Escorts is a prominent tractor player domestically with a market share of 11.3% as of FY21. Considering record food-grain procurement by government agencies as well expectations of good Kharif crop in 2021, Angel Broking expects the tractor industry will continue to outperform the larger automobile space in FY22 with Escorts being a key beneficiary.
Stove Kraft | Buy | Target price: Rs 950 | Upside: 26%
Stove Kraft (SKL) is engaged in the business of manufacturing & selling kitchen and home appliances products like pressure cookers, LPG stoves, non-stick cookware etc. under the brand name of ‘Pigeon’ and ‘Gilma’. In the pressure cookers and cookware segment, over the last two years, the company has outperformed the industry and its peers. Post Covid, organised players are gaining market share from unorganised players which would benefit the player like Stove Kraft. Going forward, we expect the company to report healthy topline and bottomline growth on the back of new product launches, strong brand name and wide distribution network.
Other stocks
Angel Broking is also positive on Ashok Leyland, Carborundum Universal, Crompton Greaves, GNA Axles, Shriram City Union, Apollo Hospital, Godrej Properties, L&T Infotech, Galaxy Surfactant and Au Small Fiance.