7 smallcap stocks that can deliver up to 28% returns to investors
ETMarkets.com|
iStock
Upside Scope: 17%
Rationale: Our recommendation is supported by a) Robust improvement in the company’s order book, b) Increasing revenue contribution from the Services segment, c) Restructuring of business activities resulting in improving ROE and ROCE (to 21% and 26.4% respectively) and operating margins (by 190 bps to 12.6% by FY25).
ETMarkets.com
Upside Scope: 13%
Rationale: With the phase-wise volume expansion progress, we model Revenue/EBITDA/PAT CAGR of 46%/45%/51% over FY23/25E. We have a Buy rating on the stock and value JTL at 22x its FY25 EPS.
Agencies
Upside Scope: 13%
Rationale: We continue to like the company’s growth story driven by (a) Operational Performance and Focus on building an EV product portfolio (b) a Healthy order book and steady growth in Indian operations (c) Strong FCF generations and negligible debt on the balance sheet (d) Capacity building to meet demand from India OEM’s.
iStock
Upside Scope: 11%
Rationale: Domestic business augurs well as Ethanol Blending continues with strong traction in FY23. The overall demand-supply gap of Ethanol, increased interest in grain-based distilleries and decarbonization impetus are aug
Upside Scope: 24%
Rationale: We remain positive on CCL Products given: 1) Strong footing in the International markets as it continues to gain market share and access new business, 2) Cost-efficient business model; 3) Doubling the capacity from 38,500 MT in FY22 to 77,000 MT by FY25 across Vietnam and India; 4) Capacity addition in the value-added products (FDC and small packs) in Vietnam, and 5) Foray into high-margin branded retail business.
Agencies
Upside Scope: 14%
Rationale: We prefer CAGrameen amongst the microfinanciers, despite its premium valuations. We believe the company remains well-poised to deliver superior performance over the medium to long term. This will be supported by (a) a strong rural presence and focus, (b) customer-centric approach, (c) a robust technology infrastructure, (d) a Strong Risk Management Framework, and (e) Adequate capitalization.
ETMarkets.com
Upside Scope: 28%
Rationale: Considering the strong and diversified order book position, healthy bidding pipeline, new order inflows, emerging opportunities in the construction space, the company’s efficient and timely execution, and strong financial credence, we expect PNCIL to report Revenue/EBITDA/APAT CAGR of 12%/11%/13%, respectively over FY23-FY25E.
ETMarkets.com
