Buy 1 Mid Cap & 2 Large Cap Stocks For Up To 57% Gains, Recommended By Sharekhan

Like every day in the stock market, some stocks can show strong gains due to news or any new sentiment. If you are looking for some good potential gainers with a reliable recommendation like Sharekhan then these 3 stocks with high potential gains could be a good pick for you to add to your portfolio. These 3 stocks include Pharma, FMCG and NBFC stocks. These stocks were recommended to buy Sharekhan for potential gains of up to 57%.

Laurus Labs Ltd

Sharekhan in its recently published report dated June 13, 2022, has given a buy call for the stocks of Laurus Labs Ltd for a target price of Rs 735 per share. This is a mid-cap pharmaceuticals company with a market capitalization of Rs 25,161.85 crore.

Stock Details - The company's current market price (CMP) is Rs 468.25. The 52-week low recorded is Rs 440 per share, and the 52-week high is Rs 723.75 per share. The P/E ratio is 30.31. EPS-TTM is Rs 15.40.

Return On Investment- In terms of returns on investments, the stock has performed well in long term. It gave 585.38% of whopping positive returns in 3 years, and 286.79% in 5 years. However, its returns are not the same in 1 year as on long-term investment. In one year, the stock moved down 23.36%, in 3 months it moved down 19.41%, and in 1 month it moved down nearly 16.26%. The stock has not given any positive returns in short-term investment. However, with massive returns in 3 years, it seems the stock is good for long-term investment.

Potential Gains - Given the brokerage's target price and the stock's CMP, the stock has a massive upside potential of approximately 57% over the next 12 months.

Sharekhan's view on the stock

Laurus in its Annual report has shared encouraging growth prospects, that are well-supported by capacity expansion plans and the management has retained its revenue guidance of $1 billion by FY2023. The recent trends suggest that freight costs are expected to normalize in the subsequent quarters as the container availability has been improving, thus pointing to likely easing of cost pressures, partially. Citing the strong demand environment, defined strategy for growth and massive capex plans provides comfort in the growth ahead. At the Current Market Price, the stock trades at 22.4x/17.2x its FY23E/FY24E EPS, which provides ample headroom for expansion basis the above. We retain a Buy recommendation on Laurus with an unchanged PT of Rs. 735.

Tata Consumer Products Ltd

The brokerage published a report on June 15, 2022, and recommends buying the stocks of Tata Consumer Products Ltd, a Tata Group's FMCG sector company for a target price of Rs 960 per share. This is a large-cap FMCG company with a market capitalization of Rs. 65,582.23 crore.

Stock Details - The company's current market price (CMP) is Rs 711.65. Its 52-week high level is Rs 889 per share and the 52-week low level is Rs 650.20. This PE ratio is 70.08. PB ratio is 4.10. EPS-TTM is Rs 10.15.

Return On Investment - The company's share price has dropped nearly 4.48% in the last year. It has given negative returns over a short investment period. However, the stock has performed exceptionally on long-term investment compared to its short-term returns. It also gave 189.64% of positive returns in 3 years of investment tenure and 349.84% in 5 years, respectively.

Potential Gains - Considering the estimated Target Price and the CMP of the stock, the stock could gain nearly 35% in 12 months.

Sharekhan's View on the stock

Tata Consumer Products Ltd is focusing on enhancing shareholders' value by simplifying its structure and unlocking significant financial value while generating consistent earnings growth focusing on its six-pillar growth strategy. Strong cash flows will be utilised for organic and inorganic initiatives to strengthen the key growth pillars in the coming year. With strategies in place, Tata Consumer Products Ltd is well poised to achieve double-digit revenue and PAT CAGR of 15% and 20%, respectively, over FY2022-FY2024. The stock is currently trading at 53.1x and 43.6x its FY2023E and FY2024E EPS, respectively. We maintain our Buy recommendation on the stock with an unchanged price target of Rs. 960.

Mahindra & Mahindra Financial Services

Sharekhan recent published a report on Mahindra & Mahindra Financial Services, a Mahindra group NBFC company, the brokerage maintains a buy call for a target price of Rs 220 per share. This is a large-cap NBFC with a market capitalization of Rs 21,164.63 crore.

Stock Details - The company's current market price (CMP) is Rs 171.30. The 52-week high is Rs 206.35 and the 52-week low is Rs 128. The P/E ratio is 18.62. The PB ratio is 1.24. EPS-TTM is Rs 9.20.

Return On Investment- When looking at the return on investment over the last 5 years, it's evident that it hasn't given positive results as in 5 years its share price dropped almost 50.82% and 56.63% in 3 years, respectively. However, it has some positive returns as well. In 1 year it delivered 5.25% positive returns, and 8.42% in 3 months. Despite its poor performance on long-term investment, the stock has generated decent returns in 3 months and 1 year.

Potential gains - Stock could climb nearly 28.43% in the near future, according to the brokerage's predicted Target Price and the CMP of the stock.

Sharekhan's view on the stock

Mahindra & Mahindra Financial Services continued to report healthy disbursement volumes in May, representing strong demand. Disbursements also picked up significantly with better collection efficiency signaling recovery in vehicle finance, which is encouraging. Additionally, it plans to increase its non-vehicle share in mix SME, LAP, and digital finance. Further, management has unveiled its Vision 2025, which is expected to give it afillip to deliver on earnings performance going ahead. Hence, given its strong liability franchise, leadership in rural financing along with strong parentage, the company is well on track to deliver on its aspirational goals. At the Current Market Price, Mahindra & Mahindra Financial Services trades at 1.2x and 1.1x its FY2023E and FY2024E P/BV, respectively. Hence, we maintain our Buy recommendation on the stock with an unchanged PT of Rs. 220

Disclaimer

The stocks have been picked from the brokerage reports of Sharekhan. Greynium Information Technologies, the Author, and the 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.