Emkay Global Lists 3 Stocks To Buy With Maximum Return Of Up To 40%

Leading brokerage firm Emkay Global has recommended investors to buy 3 stocks with maximum potential return of up to 37%. If you buy these stocks now, you can get the specified target price in a target period of 1 year. These stocks are Karur Vysya Bank, Birlasoft, and Indraprastha Gas.

Name of stock	Potential return
Karur Vysya Bank	28%
Birlasoft	40%
Indraprastha Gas	7%

Check key takeaways below:

1. Karur Vysya Bank Ltd

Emkay Global has given buy rating to Karur Vysya Bank with a target price of Rs 125 apiece and potential return of up to 28%. The current market price of the banking stock is Rs 98 apiece with a 52-week high at Rs 100 apiece and 52-week low of Rs 41 apiece, respectively.

The company has a market capitalisation of Rs 7,865 crore. According to the brokerage, "Factoring-in better than expected growth, margin trajectory and asset-quality outcomes, we upgrade our earnings for FY23-25E by 5-13% and expect RoA/RoE at a high of 1.3%/15% in FY25E, seen only prior to 2013. Thus, we upgrade our P/ABV to 1.0x from 0.8x, we retain Buy on the stock with revised TP to Rs125/share (vs Rs95).

The stock has surged 76% in last 3-years and 94% in last 1-year. The banking company was incorporated in 1916.

2. Birlasoft Ltd

Emkay Global has recommended investors to buy the stock with a target price of Rs 370 apiece and potential return of up to 40%. The current market price of Birlasoft is Rs 263 apiece with 52-week high at Rs 585 apiece and 52-week low at Rs 262 apiece, respectively.

It has a market capitalisation of Rs 7172 crore. at 25-26%. 9) The company declared an interim dividend of Rs1.5/share. According to the analyst, "We have cut our EPS estimates by 1.9-3.3% for FY23E-25E, factoring in Q2 performance. Revenue growth acceleration remains key for stock price performance in our view. We retain our Buy rating with a TP of Rs370 at 16x Sep-24E EPS (Rs380 earlier)."
Birlasoft reported a mixed operating performance in Q2FY23. Revenue missed our expectations, while margin came in above our estimates, added the analyst.

The stock has given a return of 272% in last 3-years and 94% in last 5-years. The stock hit its new 52-week low today. The stock fell 37% in 1-year. It operates in IT software sector and came into existence in 1990.

3. Indraprastha Gas

Emkay Global has assigned buy call to Indraprastha Gas with a target price of Rs 450 apiece and likely return of 7%. The current market price of Indraprastha Gas is Rs 421 apiece with 52-week high at Rs 514 apiece and 52-week low is Rs 322 apiece, respectively.

According to Emkay Global, "We slightly reduce our FY23/24/25E earnings by 2%/5%5%, as we build-in an EBITDA/scm profile of Rs7-7.5 vs >Rs7.5 earlier. Consequently, we cut our Sep-23E DCF-based target price by 3% to Rs450/share, but maintain our BUY rating on the stock owing to valuation upside and in anticipation of a favorable pricing formula by the Parikh Committee."

The stock has given a return of 33% in last 5-years, 11% in last 3-years, and declined 9% in last 1-year. The stock operates in Gas & Petroleum sector and incorporated in 1998.

 

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global. 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.