3 Multibagger Stocks From Building Materials Sector On Buy Call For 74% Likely Return, Buy: ICICI Securities

Leading brokerage firm ICICI Securities has selected 3 stocks to buy from Building Materials sector with a whopping return potential of 74%. These stocks are Kajaria Ceramics Ltd, Somany Ceramics Ltd, and Cera Sanitaryware Ltd. If you buy all these building material sector stocks, you will get maximum 74% return. All 3 stocks have given multibagger returns. Check key takeaways below:

Name of the company	Return
Somany Ceramics Ltd	74%
Kajaria Ceramics Ltd	26%
Cera Sanitaryware Ltd	18%

1. Buy Somany Ceramics Ltd

The last trading price of Somany Ceramics is Rs 514 with an intraday dip of 0.92%. The company has a market capitalisation of Rs 2185 crore. The stock's 52-week high is Rs 950 apiece and 52-week low is Rs 510 apiece, respectively.

The small cap company has given maximum return of 184% in last 3-years. It has declined 37% in 1-year and 19% in 3-months.

ICICI Securities has assigned a target price of Rs 896 apiece. Buy Somany Ceramics Ltd today at the current market price to receive a return of 74%.

Management has guided for 15-20% YoY revenue growth and double-digit volume growth in FY23. It expects margins to improve going forward due to softening gas prices and benefit from use of LPG in 60% of its manufacturing units.

2. Buy Kajaria Ceramics Ltd

The last trading price of Kajaria Ceramics Ltd is Rs 1041 apiece with an intraday fall of 0.13%. The stock's 52-week high is quoted at Rs 1379 apiece and 52-week low is quoted at Rs 886 apiece, respectively.

The company has a market capitalisation of Rs 16,576 crore.
The stock has given maximum return of 101% in last 3-years and 45% in last 5-years. It has declined 11% in last 3-months and 6% in last 1-year. The mid-cap company was incorporated in 1985.

ICICI Securities has given buy rating to Kajaria Ceramics with a target price of Rs 1312 apiece. Buy Kajaria Ceramics Ltd today at the current market price to receive 26% return soon.

KJC has announced an expansion of 3MSM of GVT capacity at Sikandrabad (U.P.) for a capex of Rs805.8mn. The facility is expected to be commissioned in Jun'23. KJC board has approved investment of Rs1.25bn for a 50% stake in a JV in Nepal to set up a tile manufacturing capacity of 8MSM.

3. Buy Cera Sanitaryware Ltd

The last trading price of the stock is Rs 5300 apiece with an intraday gain of 0.16%. The 52-week high of the stock is quoted at Rs 5968 apiece and 52-week low is quoted at Rs 3518 apiece, respectively. The market capitalisation of Cera is Rs 6893 crore. The stock has given maximum return of 119% in last 3-years and 47% in last 5-years. It has fallen 3% in last 1-month.

ICICI Securities has given buy rating to Cera Sanitaryware with a target price of Rs 6280 apiece. Buy Cera Sanitaryware today at the current market price to receive 18% return.

Guidance Management maintains its guidance for revenues doubling over 40 months. It maintains its guidance for operating margin expansion by 50-70bps YoY every year.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. 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.