Greenply Industries

Angel Broking has placed a buy call on the stock of Greenply Industries. The company manufactures portfolio of residential and commercial products comprising plywood & block boards, MDF, wood floors, flush doors and decorative veneers.

Angel Broking has recommended the stock on account of a host of reasons including capacity addition in MDF, strong brand visibility and boost for the MDF segment after the Pradhan Mantri Awas Yojana.

On the bottom-line front, Angel Broking expects 13 per cent CAGR to Rs 179 crores over FY 17-20 period owing to strong revenue and better margins in MDF business.

"At the current market price of Rs 340, the stock trades at PE of 23.3x its FY2020E EPS of Rs 14.6. We initiate coverage on Greenply with Buy recommendation and Target Price of Rs 395 (27x FY20E EPS), indicating an upside of - 16% from the current levels," the brokerage firm has said.

Jain irrigation

Centrum Broking has set a price target of Rs 139 on the stock of Jain Irrigation, against a current market price of Rs 105. Jain Irrigation is the second largest Micro-Irrigation company in the world. The company is also the largest manufacturer of plastic pipes in the country.

"Post our Q2FY18 result update  (15 Nov'17 @ Rs 100, Rating: Accumulate), the stock touched its 52 week high of Rs 150 (on 29 Jan'18). Post the Budget FY18-19 announcement on 1 Feb'18, the stock price has witnessed a correction.

JISL has been playing out on its diversification strategy in the piping and food business divisions which has resulted in better financial performance. We believe the long term triggers are intact and maintain our Accumulate rating. We have introduced FY20E estimates and value the company at 14x FY20 Earnings EPS giving us a target price of Rs 139," Centrum Broking has said.

Berger Paints

Bonanza has recommended the stock of Berger Paints. It is the 2nd largest company in decorative paint segment with market share of 19 per cent, just after Asian Paints. 

Bonanza sees a number of factors that would benefit the company including the setting up of an integrated plant with an annual capacity of 24,000 KL of water based paints and 13,200 KL of solvent based paints.

"Berger Paints' product portfolio was focused lower priced products in the past. In order to improve contribution from premium products, which has a strong demand in urban markets, Berger Paints has shifted its focused on new products development along with improving brand visibility by higher ad spends," the Bonanza has noted.

Berger Paints has also forayed into the home decor business vertical and will launch a basket of products other than paints. Berger Paints plans to launch products such as sealants, adhesives, doors, windows, wooden floor and laminates, tiles, decorative items made of brass and copper, industrial flooring and various items made of wood, board, aluminums and other materials.

Reasons to buy Berger Paints

"With 2nd largest company in decorative paint segment, favorable Indian demographics and government's initiatives, capacity expansion plans, focus shifted to premium products and foray into the home decor business, we value Berger Paints at 47 times FY19E EPS of Rs.6.50 to arrive at target price of Rs.304.00, an upside of 22 per cent," Bonanza has said.

The stock of Berger Paints last closed at Rs 245 on the NSE. Check stock quote of Berger

Cummins India

Prabhudhas Lilladher has a buy call on the stock of Cummins India. According to the brokerage report, the Powergen segment, HHP is showing signs of an uptick. Data centre, Metro and Large Commercial Real estate are also showing traction.

"We remain positive on Cummins, given its strong domestic outlook, gradual likely revival of export markets and strong history of delivering on cost rationalization and healthy cash flows. We have cut our earnings by 11% for both FY18 and FY19 to factor in weak margins. We maintain "BUY" with a revised target price of Rs 967," the Prabhudhas Lilladher report has said. 

Also read: Best small cap stocks to buy 

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