KR Choksey Suggests 5 Stocks Showing Return Potential For October Month, Invest

KR Choksey has selected five stocks for investors for the month of October as they are showing strong potential of an upside. These stocks are Sun Pharmaceutical Industries Ltd, Vinati Organics, The Ramco Cements Ltd, Nestle India Ltd, and Tech Mahindra.

Company	Potential Return In %
Sun Pharmaceutical Industries Ltd	18%
Tech Mahindra Ltd	17.6%
Vinati Organics Ltd	14.5%
The Ramco Cements Ltd	13.5%
Nestle India Ltd	12.5%

Check key takeaways below to know key details about these stocks:

1. Sun Pharmaceutical Industries Ltd

KR Choksey has given buy rating to the stock of Sun Pharmaceutical Industries with a target price of Rs 1,114 apiece and a potential return of 18.0%. The specialty revenue growth has been impressive at an average of 30.0% YoY over the last 4 quarters. According to KR Choksey, "We apply a 28.0x multiple on FY24E EPS of INR 39.8 and arrive at a Target Price (TP) of INR 1,114 and maintain the BUY recommendation, as the upside potential is 18.0% from its CMP of INR 945."

The last trading price of the stock is Rs 955 apiece with its 52-week high at Rs 967 apiece and 52-week low at Rs 733 apiece, respectively. The company has a market capitalisation of Rs 2,29,202.84 crore. Its 3-years return is 151%. The large company was incorporated in 1993 and operates in Pharmaceuticals sector.

2. Tech Mahindra Ltd

KR Choksey's another pick is Tech Mahindra Ltd with a target price of Rs 1181 apiece and a potential return of 17.6%. The stock has received buy rating. The last trading price of Tech Mahindra Ltd is Rs 1023 apiece. Its 52-week high is Rs 1837 apiece and 52-week low is Rs 944 apiece.

The stock is currently trading at a discount of 44% from its 52-week high level. The company has a market capitalization of Rs 99,636 crore at the time of writing the story. The stock has given a return of 124% in the last 5 years.

The large cap company was incorporated in 1986 and operates in IT Software sector.

3. Vinati Organics Ltd

The brokerage in its report has assigned buy rating to the stock of Vinati Organics with a target price of Rs 2370 apiece and an upside of 14.5%. According to KR Choksey, Vinati's capacity expansion plans in the ATBS segment will significantly boost enhance the company's current growth pace.

Its emphasis on growing its Butyl Phenol business and forays into new ones via its wholly-owned subsidiary Veeral Organics will bode well for the company." The last trading price of the stock is Rs 2071 apiece with its 52-week high at Rs 2,372 apiece and 52-week low at Rs 1675 apiece, respectively. The stock is currently trading at a discount of 12.69% from its 52-week high range. The company has a market capitalization of Rs 21,292.84 crore.

The stock has given a return of 336% in the last 5 years-time. The mid-cap company was incorporated in 1989 and operates in Chemicals sector.

4. The Ramco Cements Ltd

KR Choksey has given buy call to Ramco Cements with a target price of Rs 843 and a likely return of 13.5%. The brokerage believes that Ramco's capacity expansion plans is going to boost its sales volume and aid revenue growth.

The last trading price of the stock is Rs 737 apiece with 52-week high at Rs 1119 apiece and 52-week low at Rs 575 apiece, respectively. Currently, the stock is trading at a discount of 34% from its 52-week high level.

The stock has given a return of 5% in the last 5 years. The large cap company was incorporated in 1957 and operates in Cement sector.

5. Nestle India Ltd

KR Choksey has given "accumulate" rating to the FMCG sector stock of Nestle India with a target price of Rs 21,334 apiece and it is showing an upside of 12.5%. According to KR Choksey, the revenue/ EBITDA/ Adj. Net income to grow at a CAGR of 11.2%/ 12.4%/ 12.3%, respectively over CY21- CY24E. The shares are trading at 76.8x/62.5x/54.2x its CY22E/CY23E/CY24E EPS estimates, respectively.

This year it forayed into 2 different premiumization opportunities -- pet foods business and toddler nutrition brand GERBER. The last trading price of Nestle India is Rs 19321 apiece with its 52-week high at Rs 20,200 and 52-week low at Rs 16,000 apiece, respectively. The company has a market capitalization of Rs 1,86,289.14 crore.

The company was incorporated in 1959 and its stock has given a 5-years return at 162%. Currently, the stock is trading at a discount of 4.35% from its 52-week high level.

Disclaimer

The stocks have been picked from the brokerage report of KR Choksey Research. 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.