5 Stocks With Potential Upside Of Upto 27%, Motilal Suggests A Buy

Motilal Oswal has recommended investors to buy these fives stocks as it sees that the stock prices would surge and can give significant returns of upto 27%. The stocks are of Bharti Airtel, Grasim, Trent, J K Cement, and CAMS. Check the details below.

1. Bharti Airtel stock to buy, with a target price of Rs 985.

This bluechip stock has a buy recommendation from the brokerage, with a target price of Rs 985 per share. As per the brokerage estimate, the stock price could rise upto 27%. Its latest market price is Rs 770.55 per share, whish is 4 points up as per intraday.

The free float market capitalisation of the company is Rs 1,93,263.67crore, its 52-week high is at Rs 877.10 per share and the 52-week low is Rs 629.05 per share. In last one year the stock price has rallied by 7.85% and in 3 years it has surged by 46.82%.

Accoring the brokerage, " We value Bharti Airtel on a FY25E basis, assigning an EV/EBITDA ratio of 11/5 to the India Mobile/Africa business, and arriving at a SoTP-based price target of Rs 985 per share. We reiterate our Buy rating on the stock. Near-term valuation multiples have remained under pressure, but long-term growth should garner better valuations."

2. Grasim stock to buy, with a target price of Rs 1,900

Next one on the buy radar of Motilal Oswal is the stock of Grasim Industries. Its market capitalisation Rs 61,399.15 crore. The brokerage sees a potential gain of 16% from this stock. " We reduce our FY23E/FY24E EBITDA for Grasim by ~4%/6%, respectively, on account of lower caustic soda prices. We incorporate the financials of Paints business into our assumptions that led us to reduce our EBITDA/EPS for FY25E by 16.5%/33.5%, respectively, as we assume this segment to make operating losses for the initial three years. We maintain BUY with an SoTP-based target price of Rs 1,900 per share.

Grasim's latest stock price is Rs 1,636 per share, it was down by 0.41% on intraday basis. In one year the price fell by 4.33%. The 52-week low is at Rs 1,276.90 per share and 52-week high is 1,839.30 per share.

3. Buy stock of Trent, with a target of Rs 1,500

Motilal Oswal has recommended investors to buy the stock of Trent Ltd, a Tata Group stock as it believes it will grow significantly upto 21%, but based on current market price, there is an side of 12.95%. The current market price of the stock of Trent Ltd is Rs 1,328 per share. It's 52- week high is at Rs 1,571 per share and 52-week low is at Rs 983.70 per share. The free float market capitalisation is Rs 29,269.42 crore.

According to the analyst report of the brokerage, "We expect a standalone revenue/EBITDA CAGR of 28%/30% over FY23-25, backed by a strong footprint addition and robust LFL growth across segments. We retain our Buy rating with a price target of Rs1,500, given the strong growth opportunity.

4. Buy stock of J K Cement, with a target of Rs 3,260

Motilal Oswal has suggested investors to buy stock of world's leading white cement and India's leading grey manufacturing company. Based on the estimates the brokerage analyst believes that, the stock price could surge upto 18%. " We value JKCE at 13.5x Sep'24E EV/EBITDA, considering its growth plans (one of the best among mid-sized companies) and cost saving strategies. We maintain BUY rating with a revised the target price of share of Rs 3,260.

Trent Ltd's latest stock price is Rs 2803.85 per share, it was up by 1.16% on intraday basis. Within a year the price stock price fell down up by 1.16%. The 52-week low is at Rs 2,005 per share and 52-week high is at Rs 3,324.90 per share. Its free float market capitalisation is Rs 9,530.45 crore

5. Buy share of CAMS, with a Target Price of Rs 2,800

The leading brokerage suggests investors to buy stock of CAMS, a mutual fund transfer agency serving Indian asset management companies. From its estimates, there will be a gain of upto 24%, believes the brokerage. " Our estimates broadly remain unchanged, but we lower our target price to
Rs 2,800 with a revised P/E multiple of 33x on FY25 earnings (36x Sep'24 earnings earlier). The cut in multiple is to reflect the risks on AMC business The board has declared an interim dividend of Rs 10.5 per share."

The market capitalisation of the company is Rs 8,572.83 crore. Within a year the stock price has declined by 12.58% to Rs 2272.45, as the latest market price. Its 52-week high is at Rs 2,713.65 per share and 52-week low is at Rs 2,039 per share.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal, 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 consult with certified experts before making any investment decision.