- by Stocktry Expert
- 16th Jan 2021
12 Buying Ideas from Sharekhan which could give Double-Digit Returns
1. KEC International -
LTP: Rs 353.30
Target: Rs 435
Upside: 23 percent.
Despite challenges, the management remains confident of delivering a good performance in FY2021 as most of the projects go operational. The stock of KEC has doubled in the first half of FY21, since April.
2. Bharat electronics -
LTP: Rs 133.45
Target: Rs 152
Upside: 14 percent.
Company remains a preferred pick in the defence sector on account of its strong manufacturing and R&D base, good cost control, growing indigenisation, and strong balance sheet with improving return ratios.
3. Cholamandalam Investment -
LTP: Rs 424.10
Target: Rs 520
Upside: 22 percent.
Sharekhan expect disbursements to grow on a y-o-y basis in H2FY2021 and expect AUM growth of ~ 25% for FY2022E and FY2023E and expecting operating expenses to AUM ratio to be at 2.1%-2.4% and ROE to improve to 19% and 20%, respectively, for FY2022E and FY2023E.
4. Lumax Auto Technologies -
LTP: Rs 124.45
Target: Rs 148
Upside: 19 percent.
A strong recovery expected from FY2022, driven by normalisation of economic activities.
5. UltraTech Cement -
LTP: Rs 5,452.25
Target: Rs 6,000
Upside: 10 percent.
Sharekhan expects the company to continue to benefit from sustained rural demand, along with a kick start of government infrastructure execution during H2FY2021.
6. HCL Technologies -
LTP: Rs 989.80
Target: Rs 1,200
Upside: 21 percent.
A strong order bookings, a healthy deal pipeline, and higher spends on digital transformation are expected to support the company's growth going forward.
7. Carborundum Universal -
LTP: Rs 416.65
Target: Rs 500
Upside: 20 percent.
The company’s capacity expansion, new product introduction, end-user demand, and geographic diversification are expected to revive its earnings growth trajectory from FY2022.
8. HDFC Life Insurance -
LTP: Rs 704.85
Target: Rs 850
Upside: 20 percent.
Premium valuation to sustain as HDFC Life has a better diversified product bouquet best-in-class branding, strong metrics.
9. Mahanagar Gas -
LTP: Rs 1,090.80
Target: Rs 1,380
Upside: 26 percent.
We believe MGL’s underperformance versus the broader index should reverse as overhang of open access is over and focus is expected to shift back to earnings recovery over FY2022E-FY2023E.
10. Granules India -
LTP: Rs 356.05
Target: Rs 475
Upside: 33 percent.
Granules is looking to expand its reach and tap new geographies for growth.
11. CESC -
LTP: Rs 692
Target: Rs 825
Upside: 19 percent.
We see a scope for gradual re-rating in CESC, led by a recovery in earnings from the standalone business, sustained profitable operations at Dhariwal Infrastructure and potential turnaround of the Rajasthan distribution franchisee by FY2022.
12. Amber Enterprises -
LTP: Rs 2,607
Target: Rs 3,170
Upside: 21 percent.
With its unique scalable and sustainable business model, we expect Amber to clock a 33%/61%/113% CAGR in Revenue/EBITDA/PAT over FY2021E-FY2023E led by enhanced capacity, increased product offerings and customer penetration coupled with healthy demand outlook for the electronic outsourcing industry.
