Analysts say the current market offers opportunities to invest across the board — from largecaps to smallcaps. On the occasion of its 14th anniversary, ET Now asked D-Street veterans to give potential multibagger ideas and managed to get a few.
“The whole economy and the equity landscape is a multi-bagger. I am seeing a long-term, sustainable kind of a bull market and the ideas are in plenty,” says Porinju Veliyath of Equity intelligence.
Veliyath has picked Restaurant Brands Asia (RBA) as the next big investment opportunity, which is not in the limelight today. The S&P BSE500 stock has seen muted performance so far this year, falling 3.5% and offered just 10% returns in the last one period.
Restaurant Brands Asia owns and operates a chain of restaurants including the iconic Burger King. The company has a network of approximately 315 restaurants, including nine sub-franchisee restaurants across 60 cities in the country.
“In the last few years, the RBA has been struggling with many issues. However, they are well set for growing much faster and creating cash flows in the future. It is a great opportunity for conservative value investors at Rs 107-108. But, there is no hurry to buy the stock,” Veliyath said.
“We are holding it in our portfolio management and AIF. It looks like a sober, safe idea and is a new generation business in which you can participate,” he added.Veliyath said, notwithstanding the associated risks with the company, he likes the bet. “This can now be around Rs 5,000 crore market cap and it has the potential to go till Rs 20,000 crore eventually.
Meanwhile, Atul Suri of Marathon Trends stayed away from explicit stock ideas but acknowledged that ITC is currently a great stock in the compounding space.
“It is something I can sleep at night with and I think it has multiple triggers. Most people look at it only as a cigarette company, but I think there is a lot happening. I think they have done amazing work in the FMCG space. Once the market realises its multiple triggers, the sum of parts will be more than what it is today,” he said.
Apart from the multibagger stocks, experts have also offered some top investment ideas for the next few months. Shahina Mukadam, an independent analyst, has recommended BSE and Vadilal Industries in the smallcap space.
Rajesh Agarwal of AUM Capital, on the other hand, advised investors to buy Astral Poly for a target of around Rs 2,300 in the next one year and Graphite India for the same period. Other stock picks include RIL, HDFC by Ashish Kapur of Invest Shoppe and Sterling Tools, Imagicaa Entertainment by Avinash Gorakshakar of Profitmart Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)