Money-making Ideas
As the market is directionless, investors are trying to find bottom-up opportunities in the medium term. However, due to highetened valuation, money making opportunities may not be as widely available. Here, we have collated five stocks where analysts believe there is still some fire left to keep your pocket warm:
TCI Express | BUY | Target Price: Rs 1775 | Time Period: 3 months
The stock earlier during May 2021 registered a resolute breakout above a rising supply line joining the highs of CY18 (Rs 739) and CY20 (Rs 949) signalling a structural turnaround. It is currently on the cusp of generating a bullish Flag breakout signalling continuance of the primary up trend and offers fresh entry opportunities. We expect the stock to trade with a positive bias and head towards Rs 1775 levels as it is the 161.8% external retracement of its last five weeks’ breather
NMDC | BUY | Target: Rs 209 | Time Period: 3-5 months
Once the stock breaks the triangle pattern on the weekly chart, the momentum can be very strong. Also the demerger of the iron ore and steel business is a positive trigger for the company. NMDC has seen long additions from the start of the expiry and recent correction in the stock has not seen much longs liquidation and provides nice opportunity to enter the stock. Considering all the technical and derivative reasoning discussed above, we recommend buying the stock in the range of Rs 168-173, for the target of Rs 209, keep a stop loss at Rs 155.
Welspun India | BUY | Target: Rs 115-123 | Time Period: 6 months
The company supplies high-quality towels and home textiles to hotels, vacation rentals, spas/resorts, gyms and health clubs. Apart from this, its next leg of growth will be driven by newly commissioned flooring solution business which is likely to grow 2.6x over FY21-23E. Its overall Revenue and PAT are likely to register a growth CAGR of 13.4/20% over FY21-23E. The stock is currently trading at a valuation of 13x FY23E earnings. We feel the base case fair value of the stock is Rs 115 (14.5x FY22E) and bull case fair value is Rs 123 (15.5x FY22E) over the next two quarters. Investors can buy the stock at LTP and further add at Rs 95.
Manappuram Finance | BUY | Target: Rs 198-211 | Time Period: 6 months
MFL generates return ratios in excess of 20% consistently – much ahead of other category NBFCs. High sustained RoEs (>22%), negligible credit costs, resumption of steady state AUM growth once lockdowns are lifted, possibility of spinoff/listing of Asirvad Finance are some other triggers that are likely to play out over the next few quarters. We feel investors could look at buying the stock at the LTP and add on dips to Rs 157-159 band (1.2xFY23E ABV) for base case fair value of Rs 198 (1.5x FY23E ABV) and bull case fair value of Rs 211 (1.6x FY23E ABV) over 2 quarters.
Narayana Hrudalaya | BUY | Target: Rs 529-265 | Time Period: 6 months
Significant traction is expected in its business as the pandemic situation eases. We expect revenue growth at a CAGR of 25.5% over FY21-23E, as the share of revenue from new hospitals and Cayman Island increases. We believe the base case fair value of the stock is Rs 529 (36.5x FY23E EPS, 15.7x FY23E EV/EBITDA) and the bull case fair value of the stock is Rs 565 (39x FY23E EPS, 16.8x FY23E EV/EBITDA) over the next two quarters. Investors can buy the stock at LTP and add on dips to 425-427 band
