10 stock picks that can offer gains of up to 86%

Axis Securities has given a target price of Rs 315-330 per share. The buying range suggested for the stock is Rs 285-280. The stock last closed at Rs 285.4 per share. “On the weekly time frame Mahindra Holidays has decisively broken out above the “multiple resistance” zone placed between Rs 267-277 range. A Breakout was witnessed during the first week of September. This breakout was accompanied by rising volume,” noted the brokerage.

On the textile stock, Axis Securities has given a target of Rs 433 per share. This from the last traded price of Rs 370 translates into a potential upside of over 17%.

“On the weekly time frame, the stock has decisively broken out above “rounded bottom” pattern. The breakout was placed at Rs 350 level. This breakout is accompanied by an increase in volume confirming participation at the breakout level,” noted the brokerage. The holding period to realise the targeted price is 3-4 weeks.

For Cummins India, Axis Securities has come up with a target price of Rs 1,485. The holding period for the stock is again a short tenure of just 3-4 weeks. The stock last settled at Rs 1347.90 per share.

“Stock consolidated above the breakout area for three months and in this week it broke out above the downward sloping trendline of this consolidation pattern. Both breakouts are accompanied by an increase in volume confirming participation at the breakout level. The weekly strength indicator RSI is in the cross above 9EMA mark indicating positive momentum”, noted the brokerage.

Axis Securities has suggested a buy on the stock with a target price of Rs 3510 for the short term. The brokerage said the stock is well placed above its 20,50,100 and 200 Day 20,50,100 and 200 Day SMA which reconfirms bullish sentiments. The weekly strength indicator RSI is in positive terrain and sustaining above the 9EMA mark indicating positive momentum.

Shares of forging company Bharat Forge are liked by Axis Securities for a target price of Rs 940 levels. The stock last closed at Rs 834.2 per share. The brokerage said on the daily time frame, the stock is in a strong up trend, forming a series of higher tops and bottoms. The stock is trading above 20, 50, 100 and 200 SMA indicating a positive trend and bullish sentiment on the stock, added the brokerage.

Angel One has recommended a buy rating on the counter for a target price of Rs 485, which implies an upside potential of 49% from the current price.

The brokerage noted that the firm is of the view that consolidation of the vendors and new client addition will help in maintaining the trend of market or wallet share gains. The company has a strong balance sheet with net cash position. The brokerage believes that Suprajit is the major beneficiary of the ramp-up in production by OEMs across the globe.

The SFB is liked by Angel One and for the same the brokerage has given a target price of Rs 848, implying returns to the tune of 48% from the last traded price.

“AU continued to report very strong numbers in Q4FY2022 as GNPA/NNPA reduced by 62/79bps QoQ to 1.98% and 0.5% of advances. Restructured advances at the end of the quarter also declined to 2.5% of advances. The bank posted NII growth of 42.8% for the quarter on the back of strong advances growth of 33% YoY while NIMs for the quarter stood at 6.3%. We expect AU SFB to post a robust NII/PPOP/ PAT CAGR of 35.2%/40.2%/38.7% between FY2022-24 on the back of AUM CAGR of 34.8%. Reducing the cost of funds will also help NIM expansion going forward. We believe that the worst is over for the bank and expect continued improvement in asset quality in FY2023 which should lead to a rerating,” noted the brokerage.

For the stock, Angel One has given a target price of Rs 3850, which means an upside potential of 86% from the last traded price of Rs 2065.

The brokerage said, “Amber would outperform the industry due to its dominant position in Room AC contract manufacturer, increase in the share of business in existing customers and new client additions. Amber plans to increase revenues from components (by increasing product offerings, catering to newer geographies, and adding new clients) and exports. In the past 2-3 years, Amber has acquired companies that would help in backward integration and also help it to foray into different segments like railway, metro and defence. Going forward, we expect healthy profitability on the back of foray into the Commercial AC segment, entry into export markets, and participation in the PLI scheme”.

Angel One has suggested buying the auto ancillary stock for a target price of Rs 843. This means the stock offers a potential upside of 81%. “This global BEV segment has been the fastest growing and is expected to maintain high growth rates which are positive for Sona BLW. Sona BLW has a strong market share ranging from 55-90% for differential gears for PV, CV, and tractor OEMs in India. Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command a higher multiple which is justified by ~49% earnings CAGR over FY21-24E,” said the brokerage.

For the specialty chemicals company, Angel One has given a target price of Rs 700 i.e. an upside of 36% from the last traded price. “At current levels, the stock is trading at a P/E multiple of ~13.5xFY24 EPS which is at a significant discount to other chemical companies. Therefore, we believe that there is value in the stock at current levels and hence rate it a BUY,” added the brokerage.

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