5 Stocks That Have Potential To Generate Good Returns In Medium Term

In the last few weeks markets have fallen a little, allowing long term investors to re-look at some fundamentally good stocks.

Petronet LNG

Emkay is bullish on Petronet LNG. "While we expect pressure on PNLG's operations for the next 4- 6 quarters, the long term growth prospects are encouraging. 1) Benefits of lower LNG prices reflecting in Ras Gas Qatar's formula from FY17E, 2) Tying up 14.74mntpa out of total15 mntpa capacity in long term contracts with off-takers and 3) Possibility of LNG prices remaining low due to new capacity addition from Australia, the US, Mozambique & Tanzania - promise healthy growth, post FY17E. We believe PLNG's stock prices have already factored in the near term concerns. Thus we have changed our recommendation from Hold to Buy with a Target price of 227", says Emkay Global Financial Services' research report.

Capital First

Sharekhan has put a buy call on Capital First. "A likely easing of interest rates or a pick-up in the economy will boost the company's growth. Considering the robust growth outlook, healthy asset quality and experienced management team, we believe that the stock trades at reasonable valuations (2.0x FY2017E book value). We maintain our Buy rating on the stock with an unchanged price target of Rs 485 (2.3x FY2017 BV)", says Sharekhan's research report.

Alkyl Amines Chem

Firstcall Research has put a buy call on Alkly Amines. "On the basis of EV/EBITDA, the stock trades at 8.15 x for FY15E and 7.59 x for FY16E. Price to Book Value of the stock is expected to be at 3.63 x and 3.06 x respectively for FY15E and FY16E. We recommend ‘BUY' in this particular scrip with a target price of Rs.345.00 for Medium to Long term investment", says Firstcall Research report.

Bank of India

Brokerage firm Prabhudhas Lilladher has set a price target of Rs 285 on Bank of India. The firm believes that earnings normalization will happen in 2016-17, should provide good hopes. The firm sees an EPS of Rs 67.4 for the Bank in FY 2016-17.

CARE

Maximum Securities says CARE has the potential to touch Rs 1989, says Maximum Securities. "CARE's strong fundamentals and scope for improvement in credit demand we value the company with a P/E of 26x FY17E EPS to arrive at a target price of Rs 1989/share to be achieved within 18 months", says Maximus Securities' research report.

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