ICICI Direct Sees 51% Upside Potential In 2 Small Cap, Mid Cap Metal Stocks, Buy

ICICI Direct has recommended investors to buy small cap stock operating in Metals-Ferrous sector, Vardhman Special Steels Ltd with target price of Rs 425 apiece. The analyst has also suggested to buy another metal sector stock, Mishra Dhatu Nigam with target price of Rs 285 apiece. If you buy both these stocks now, you can get potential return of 51% soon. Check details below:

Buy Vardhman Special Steels: Current market price of small cap stock Vardhman Special Steels is Rs 364.80 apiece on BSE. ICICI Direct has recommended investors to buy Vardhman Special Steels with target price of Rs 425 apiece. If you buy Vardhman Special Steels now, you can get potential return of 17%. The stock's 52-week high is Rs 379.15 apiece and 52-week low is Rs 201.10 apiece, respectively. The company has a market capitalisation of Rs 1,482.09 crore.

The stock gave a return of 16% in last 3-months and 52% return in last 1-year. It soared 143% in 2-years and 575% return in last 3-years.

According to ICICI Direct, "VSSL's share price has given a return of ~56% over the last one year (from ~Rs 236 in March 2022 to ~Rs 367 levels in March 2023).

We introduce FY25 numbers and now value VSSL on an FY25 basis. We upgrade the stock from HOLD to BUY. We value VSSL at Rs 425 i.e. 7x FY25E EV/EBITDA.

Buy Mishra Dhatu Nigam: The analyst has recommended investors to buy mid cap PSU Miniratna stock, Mishra Dhatu Nigam with target price of Rs 285 apiece. Current market price of the stock is Rs 189.60 apiece. if you buy Mishra Dhatu Nigam share now, you can get potential return of 51%.

The board of directors of the company on March 15, 2023 approved declaration of Interim Dividend Rs. 1.68/- per equity share (@16.80%) of Rs. 10/- each for the financial year 2022-23.

The stock's 52-week high is Rs 268.85 apiece and 52-week low is Rs 155.65 apiece, respectively. Its market capitalisation is Rs 3,551.97 crore. It gave 12% return in last 1-year and 2% in last 2-years. It fell 15% in last 3-months.

According to ICICI Direct, "Mishra Dhatu Nigam (Midhani) is a leading manufacturer of special steel, super alloys and titanium alloys catering to niche end-user segments like space, defence, etc. We have a BUY rating with a target price of Rs 285."

Disclaimer: The stocks have been picked from the brokerage report of ICICI Direct. 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.