3 Small, Mid Cap Stocks That Can Rally Up To 44%, ICICI Securities Initiates Buy Call

ICICI Securities has recommended 3 stocks in its latest report showing an upward potential of 30 to 44%. The stocks that ICICI Securities has listed include Century Plyboards (I) Ltd, Sansera Engineering, and HealthCare Global Enterprises. Check key takeaways below:

Name of company	Return potential
Century Plyboards (I) Ltd	44%
HealthCare Global Enterprises	24%
Sansera Engineering	18%

1. Buy Century Plyboards (I) Ltd

The last trading price of the stock on the BSE is Rs 540 apiece with an intraday decline of 4.21%. ICICI Securities has recommended investors to buy Century Plyboards (I) with a target price of Rs 775 apiece. If you buy Century Plyboards (I) Ltd now, you can get potential 44% Return.

The 52-week high of Century Plyboards is Rs 749 apiece and 52-week low is Rs 484 apiece, respectively. The mid-cap company has a market capitalisation of Rs 12,012 crore. The stock has given 230% return in last 3-years and 60% return in last 5-years. It has fallen 11% in last 1-year.

According to ICICI Securities, "Management indicated that the Q2 blended margins (~17%) are sustainable in the near term. Company had guided for >20% YoY revenue growth in FY23 (implying H2FY23 growth of ~5% YoY), which we believe is achievable. We tweak our estimates for FY23E-FY25E by 2%-3% respectively. Maintain BUY with an unchanged rolled-over Dec'23 target price of Rs775, set at 35x P/E 1-year forward."

2. Buy HealthCare Global Enterprises

The last trading price of HealthCare Global on BSE is Rs 291 apiece with less than 1% intraday decline. The analyst has recommended investors to buy HealthCare Global Enterprises with a target price of Rs 360 apiece to receive potential return of 24%.

The company has a market capitalisation of Rs 4057 crore. The stock's 52-week high is Rs 320 apiece and 52-week low is Rs 291 apiece, respectively.

The stock has soared 212% in last 3-years and 15% in last 1-year.

According to ICICI Securities, "Comfortable debt levels with negligible capex plans provide room to explore additional growth opportunities. We remain positive on the stock as the company is poised for growth with focus on improving the utilisation of its assets and strengthening the balance sheet. Retain BUY with target price of Rs360/share based on 15xSep'24E EV/EBITDA. Key downside risks: Higher competition in oncology, and delay in operational turnaround of new centres."

 

3. Buy Sansera Engineering

The last trading price of the stock on BSE is Rs 769 apiece with an intraday fall of 1%. ICICI Securities has assigned buy call to the stock with a target price of Rs 910 apiece. If you buy Sansera Engineering Ltd now, you can get potential upside of 18%.

The company has a market capitalisation of Rs 4073 crore.

The 52-week high of the stock is Rs 834 apiece and 52-week low is Rs 548 apiece, respectively. The stock has surged 5% in last 1-month, 6% in last 3-months, and declined 5% in last 5-years.

According to ICICI Securities, "EBITDA margin is likely to go back towards the 18-20% range with business scaling up across 2Ws and aerospace along with falling input commodity and freight costs. With no change in estimates, we maintain BUY on SEL with revised DCF-based target price of Rs910, implying 16.5x FY25E earnings."

 

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.