Bombay Stock Exchange building. (Image: Wikimedia Commons)
Indian stock markets are on a continuous upsurge since January 2017. This year the broader index Nifty 50 crossed the five-digit mark of 10,000 while Sensex had advanced nearly to 32,700 from the level of around 26,600 at the beginning of this year. The IPO (initial public offering) market has also emerged as one of the most promising as compared to last year’s public offers. In 2017, BSE (Bombay Stock Exchange) became the first Indian stock exchange to issue the shares. Collectively, about Rs 50,000 crore has been raised so far through the IPOs which include GIC’s Rs 11,300 crore; SBI Life’s Rs 8,400 crore share sale.
Domestic stock markets are growing at a fast pace on the back of continued support from DII (domestic institutional investors) while a heavy selling from FII (foreign institutional investors) has been observed since last two months. Despite few ‘slips and trips’, the key equity indices Sensex and Nifty have managed to return about 22-24% so far in this year. As investors remain on a continuous lookout for avenues to invest in, we bring you 11 stocks under Rs 300 each which may return up to 45%.
Navkar Corporation — Angel Broking
Shares of Navkar Corporation have returned about 15% in 2017 so far and the research and brokerage firm Angel broking has given a target price of Rs 265 which implies an upside of about 44% from its current market price of Rs 183. “We expect NCL to successfully use its rail advantage and scale up its utilizations at both JNPT (Jawaharlal Nehru Port) and Vapi ICD (Inland Container Depot),” according to Angel Broking.
Deepak Nitrite — Anand Rathi
Shares of Deepak Nitrite have more than doubled in over a nearly 10-month period of this year so far. The research and Brokerage firm Anand Rathi has given a further upside of 28% to a target price of Rs 264. “At CMP, the stock is trading 27x time FY18E and 11.3x FY19E earnings. We recommend BUY on Deepak Nitrite Limited with a target price of Rs 264 per share,” according to Anand Rathi.
Edelweiss Financial Services — Aditya Birla Money
Shares of Edelweiss Financial Services have nearly tripled since the beginning of this year. The research and brokerage firm Aditya Birla Money has given a further upside of up to 30% from its current market price of Rs 276. “Edelweiss has delivered a PAT CAGR of 35%+ over past five years with healthy ROE of 15%+. Considering the consistency and growth coupled by buoyant outlook, Edelweiss is well placed to deliver strong growth,” according to Aditya Birla Money.
Mold-Tek Packaging — Axis Direct
Shares of Mold-Tek Packaging have jumped nearly 60% so far in this year. The research and brokerage firm Axis Direct has given an upside of 26% to a target price of Rs 356. “With rising contribution in F&F (Food and FMCG) segment, full-scale operationalisation of RAK plant, new product launches and consistent increase in the share of IML products, Mold-Tek Packaging can report 28% earnings CAGR over FY17-FY19E,” according to Axis Direct.
Liberty Shoes — Globe Capital Market
Shares of Liberty Shoes have returned about 75% in the current calendar year so far. The research and brokerage firm Globe Capital Market has given an upside of 45% to the target price of Rs 365 from its current market price of Rs 251. “The company’s revenues now stand at Rs 500 crore and it is aiming to increase it to Rs 650 crore in two years. The growth in Indian fashion and lifestyle market has given momentum to the footwear industry,” according to Globe Capital Market.
NBCC (India) — Globe Capital Market
Shares of NBCC (India) have also more than doubled since the beginning of 2017. Globe Capital Market has given an upside of 38% from its current market price of Rs 243 to a target price of Rs 335. “NBCC will benefit from redevelopment, housing for all, smart cities and other projects. Increase in public sector spending on building construction is triggering significant order accretion for the company,” according to Globe Capital Market.
KNR Construction — JM Financial
Shares of KNR Construction have grown nearly 25% in 2017 so far. The research and brokerage firm JM Financial has given an upside of 16% to a target price of Rs 240. “Best in class execution capabilities, healthy balance sheet, huge infra development opportunity, high operating profitability, limited BOT exposure, a healthy pipeline of projects, healthy return ratios and cheap valuations provides comfort and re-rating of the stock,” according to JM Financial.
J Kumar Infraproject — JM Financial
Shares of J Kumar Infraproject have returned nearly 15% in 2017 so far. Globe Capital Market has given an upside of 30% to a target price of Rs 297. “Government’s thrust on infrastructure, metro project announcement in tier-2 cities, low leverage, foray into road segment and healthy order book giving strong visibility to the revenue growth for the company,” according to JM Financial.
ITC — Reliance Securities
Shares of India’s largest FMCG player ITC have risen around 10% in the present year. The research and brokerage firm Reliance Securities has given an upside of 26.2% from its current market price of Rs 266 to a target price of Rs 336. “We believe that increased clarity post revised GST rates and the resultant price hikes will return the focus on earnings for the company,” according to Reliance Securities.
Apollo Tyres — IIFL
Shares of Apollo Tyres have risen nearly 25% in 2017. The research and brokerage firm IIFL has given a further upside of 25% from its CMP of Rs 239 to a target price of Rs 299. “We believe domestic players like Apollo Tyres will continue to benefit from increasing demand and less competition as Chinese manufacturers are now concentrating on the more profitable US market,” according to IIFL.
Century Plyboards (India) — IIFL
Shares of Century Plyboards (India) have risen over 60% since the start of 2017. IIFL has given a further upside of 27.9% from its current market price of Rs 254 to a target price of Rs 325. “The GST reforms would have a structural impact leading to shift in demand for wood panel industry products from unorganized to organized players, benefiting Century Plyboards (India) as it has a leading market share profile and strong brand recall. We expect it to register a nearly 25% earnings CAGR over FY17-19E,” according to IIFL.
