However, retail investors are in two minds: whether to book profits or continue investing. For investors looking for signs of real economic recovery, not just the stock market rally, here are some stocks that can give a minimum of 20% returns over the next twelve months, recommended by India’s top brokerages.
AXIS SECURITIES
KARNATAKA BANK
LTP: Rs 189.25 | Target: Rs 240
On a quarterly basis, the chart has reconfirmed a breakout at Rs 160 levels on a closing basis which signals bullish sentiments. This is accompanied by huge volumes. Weekly, monthly, and quarterly strength indicator RSI is in favourable terrain.
MAHINDRA & MAHINDRA
LTP: Rs 1,453.75 | Target: Rs 1,900
The rising 20, 50, 100, and 200-day moving averages and price rises reconfirm bullish sentiments. The weekly, monthly, and quarterly strength indicator relative strength index (RSI) is in favourable terrain, which signals sustained strength.
SHAREKHAN
JUPITER WAGONS
LTP: Rs 173.30 | Target: 25-30%
Bagged an order from Indian Railways for passenger coach brakes and is working on obtaining certification for freight wagon braking systems. Current valuation at 17 times FY25 earnings with 25% RoE and 29% RoCE look attractive.ZYDUS LIFESCIENCE
LTP: Rs 582.75 | Target: 25-30%
Strong rise in product approvals and market share gains in key products such as gRevlimid and gTrokendi and eight new launches in the March quarter in the US bodes well. Trades at an attractive valuation of 18.5 times FY25 estimated EPS.
HDFC SECURITIES
BANK OF BARODA
LTP: Rs 190.35 | Target Rs 234
After the amalgamation with Vijaya Bank and Dena Bank, BoB has become one of the largest public sector banks with a strong domestic presence. The bank is trading at an inexpensive valuation of 0.9 times the FY25 estimated price to book.
SATIN CREDITCARE
LTP: Rs 172 | Target: Rs 207
After remaining cautious over the last few quarters, Satin Credit has resumed its lending, driving growth in assets under management. Capital raise of Rs 225 crore in February 2022 has provided the company with sufficient growth capital.
IIFL SECURITIES
PNC INFRATECH
LTP: Rs 327.50 | Target: Rs 405
With on-track execution in FY23, PNC Infra is on course to deliver 15% EPS growth aided by a Rs 20,500 crore order book and a healthy award pipeline. Ity has built a large 23-project portfolio and is targeting monetisation of 12 projects in FY24.
RATEGAIN TRAVEL TECH
LTP: Rs 418.05 | Target: Rs 510
RateGain’s new contract wins in the March quarter came in at a record Rs 41.4 crore, while the pipeline expanded by 36% YoY to Rs 380 crore. The management is confident of delivering 15% growth in Adara and 15% Ebitda margins in FY24.
KOTAK SECURITIES
JINDAL STEEL AND POWER
LTP: Rs 580.85 | Target: Rs 740
In two phases, capacity would increase by 65% over the next year, while higher backward and forward integration over FY24-26 would lift its margin profile. JSPL has a sector-leading growth profile with the strongest balance sheet.
ZOMATO
LTP: Rs 75.07 | Target: Rs 95
Retained market share lead against Swiggy. In 2022, as per Prosus’ disclosures and Zomato’s reported metrics, food delivery GMV share stood at 55:45 in favour of Zomato. Contribution loss per order reduced significantly for Blinkit in FY23.
MOTILAL OSWAL FINANCIAL SERVICES
STATE BANK OF INDIA
LTP: Rs 572.80 | Target: Rs 700
Continues to focus on building a superior loan book, as seen in the steady decline in NPAs, improving PCR, and robust loan growth. The firm estimates a 13% CAGR in loans over FY23-25, on steady retail trend
and recovery in corporate demand.
STAR HEALTH
LTP: Rs 587.10 | Target: Rs 720
Star Health, with a retail share of 31%, is a unique proposition to play the fastest-growing health insurance segment. Given the strong prospect of 25%-plus CAGR in earnings, limited cyclicality risk and healthy RoE, the stock deserves a premium.
NUVAMA INSTITUTIONAL EQUITIES
GILLETTE
LTP: Rs 5,082 | Target: 25%
Due to its past tepid growth, Gillette has been a laggard. At current valuations, the downside looks limited, and there are early signs of growth in sales and profits due to improved traction in women’s grooming, electric shaving products, and oral care.
POLYCAB
LTP: Rs 3,552 | Target: 25-30%
Attractively placed to gain from its leadership in India’s cables and wires market. Alongside another strong trigger with approximately 15-20% more price rally, the stock can enter the MSCI Standard Index in the August-November rejig.