Invest In these 3 Stocks To Increase Your Wealth, Maximum Potential Return 37%: Anand Rathi

Anand Rathi has recommended investors to buy 3 stocks to increase their wealth. These stocks are Supreme Industries, Dhanuka Agritech, and Apcotex Industries Limited (APCOTEX). If you buy the three stocks now, you can get a maximum return of 37%.

1. Supreme Industries

Anand Rathi has suggested investors to buy the stock with a target price of Rs 2730 apiece. The current market price of Supreme Industries is Rs 2201 apiece. If you buy the stock now, it can fetch you a potential return of up to 24%.

According to Anand Rathi, "The encouraging demand outlook and margin tailwinds would boost the H2 FY23 performance. Management expects Rs90bn revenue and a 12-12.5% EBITDA margin for FY23. We introduce FY25 earnings and expect 12% and 9% revenue and earnings CAGRs respectively over FY22-25. We retain our Buy rating, and raise our target price to Rs.2,730 (from Rs.2,467) based on 27.5x (unchanged) FY25e earnings."

The mid cap company came into existence in 1942 and operates in Plastics sector. The stock has given a 5-years return of 93%. It has a market capitalisation of Rs 27,962.42 crore.

Meanwhile, you can also get an interim dividend of Rs 6 per share if you buy the stock.

The board of directors of Supreme Industries stated in their regulatory filing, "Pursuant to Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its meeting held on Monday, the 31 st October, 2022, inter- alia, transacted the following business: 1. Approved the Un-Audited Financial Results (both Consolidated and Standalone) for the Second Quarter ended 30th September, 2022. 2. Approved payment of Interim Dividend @ 300 % i.e. Rs. 6/- per Share on 12,70,26,870 Nos. of Equity Shares of Rs. 2/- each (F.V.).
The company has fixed Wednesday, the 9th November, 2022, as the "Record Date" for the purpose of ascertaining the eligibility of the Shareholders for payment of Interim Dividend.

2. Dhanuka Agritech

The brokerage house has recommended investors to buy the stock with a target price of Rs 850 apiece. The current market price of Dhanuka Agritech is Rs 727 apiece. If you buy the stock now, you can get a potential return of 17%.

It is worth noting that the Board of Directors of Dhanuka Agritech Ltd at its meeting approved the proposal for the buyback of Equity Shares at a price of ₹850/- per equity share up to an aggregate amount not exceeding ₹ 85 Crore from the shareholders of the Company on a proportionate basis through a tender offer.

The stock has given a return of 143% in last 3-years. The small cap company came into existence in 1985 and operates in Pesticides/Agro Chemicals sector. The company has a market capitalisation of Rs 3390 crore.

3. Apcotex Industries Limited

Anand Rathi has assigned buy rating to the stock of Apcotex Industries with a target price of Rs 703 apiece. The current market price of Apcotex Industries is Rs 512 apiece. If you buy the stock now, it can give you a potential return of 37%.

According to Anand Rathi, "Apcotex's strong product mix & management, ongoing new capacity additions, growing export demand for NBR related products and robust domestic demand in underlying industries like paper, carpets, construction etc. will continue to drive further growth however, due to peak capacity utilization levels coupled with slowdown in medical gloves segment volume growth is expected to taper down in the nearterm. We maintain our BUY rating on the stock with a target price of ₹703 per share."

The synthetic rubber manufacturer Apcotex Industries Ltd reported a 16.4% rise in its revenue from operations in Q2FY23 as its revenue stood at Rs.2,832 Mn vs Rs.2,434 Mn in Q2FY22 during a seasonally weak quarter on the back of decent value growth of 11% and volume growth of 5-6%.

On a QoQ basis revenue was down 8%. During H1FY23 the company reported robust 38% revenue growth to Rs.5,897 Mn.

Disclaimer

The stocks have been picked from the brokerage report of Anand Rathi. 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.