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Buy 2 Stocks For 40% Gain In 1 Yr, Sharekhan Is 'Positive'

Amid a flat equity market condition, these 2 stocks can meet your financial goals in the short-term, as reputed brokerage firm Sharekhan is 'positive' about these 2 small-cap stocks, buy for up to 40% gain.
Kuntala Sarkar
VST Tillers and Tractors Ltd.
VST's current market price is Rs. 2654, Sharekhan estimated a target price of Rs. 3238, for 22% return. Its market capitalization (small-cap) is Rs. 2,293 crore.
Company performance
In Q4FY22, its operational performances have improved significantly. Revenue, EBITDA and PAT grew by 12.1% YoY, 41.4% YoY and 70.9% YoY respectively.
Sharekhan thinks
VST is well-placed to benefit from a strong rural economy and an increase in farm mechanization; earnings to growth robust at 23.5% CAGR during FY22-FY24E.
Arihant Superstructures Ltd. (ASL)
Arihant's current market price is Rs. 143, Sharekhan estimated a target price of Rs. 200, for 40% return. Its market capitalization (small-cap) is Rs. 589 crore.
Company performance
In Q4FY22, Arihant's sales booking and collections in the FY2022 have increased by 74% y-o-y and 45% y-o-y, respectively. OPM stood at 23.4%.
Sharekhan thinks
ASL is scaling up its size through an aggressive launch pipeline over the next 3 to 5 years. But key risk is slowdown in real estate demand, especially in the MMR region.