5 ‘Buy' And 2 ‘Sell' Ideas By Experts For Up To 38% Gains In 1 Year

Indian indices in trade on December 13, 2021 ended on a negative note with Sensex declining over 500 points, while Nifty was dragged below 17,400 points. Broader markets however performed better with a decline of just 0.25 percent on the Nifty Mid Cap 100 as against Nifty's fall by 0.82 percent. Among Nifty sectoral indices, all but NSE IT ended in the green, with Tech Mahindra hitting a 52-week intra-day trade.

Now here are some 5 stock 'Buy' and 2 'Sell' ideas for substantial gains:

BPCL:

For this divestment bound oil marketing and retailing company, for which the divestment is unlikely to go through in 2022 given the pace at which the process is gearing ahead (considering financial bids have not been opened yet), Jefferies has suggested a 'Buy' for a 1-year price target of Rs. 540. Considering the last closing price of Rs. 392, the returns will be 38%.
The 'Buy' has been suggested as privatization is no longer priced in. "After correction, BPCL's forward PB is the lowest in 7 years and is at 20 percent discount to the multiple before privatisation plan announcement.

Blue Star:

Research house BOB Caps has given a 'Buy' tag to this white goods company. The price target suggested to be hit in 1-year's time-frame is Rs. 1371. Given the current price of Rs. 985, it means a potential upside of 39%.

The rationale given for the buy is the company's growing market share in the room AC business owing to economy launches, focus on the increasing commercial refrigeration market as well as compelling valuations as against peers.

Coal India:

The monopoly company stock which is the largest coal producing company globally has been rated as a 'Buy' by Motillal Oswal for a price target of Rs. 200 to be realised in a year's time. The stock settled at a price of Rs. 149, which is straight gains of 34%.

The buy has been given considering attractive valuation of 3times EV/Ebitda and a high dividend yield of 11%. Other than this for the company, second half is much better than the first half.

IPCA Labs:

At the current price, given the target price of Rs. 2036, potential investors in the scrip can make 24% gains. The given buy and target price has been given by Edelweiss. And the clarification given is that though the company benefitted from Covid led opportunities in fy 21, the normal growth should resume in Fy23.

Aavas Financiers:

The financing company has been given a 'Buy' by Prabhudas Lilladher for a target price of Rs. 3500. At the current price of Rs. 2626, the scrip can offer 33% gains.

The buy recommendation is on the premise that the company is the dominant players in the self-employed affordable home loans. The company mirrors strong business model of yesteryear's Gruh Finance and will continue to command premium valuations.

Paytm:

JM Financial has a 'Sell' on the stock of this payments company and has given a price target of Rs. 1240, i.e. a downside of 20%. The 'Sell' is given the premise that the company is facing stiff competition and will confront challenges going ahead in customer acquisition that will have a negative bearing on the company's main payments business.

JSW Energy:

For the power distribution and generation company, the Sell has been suggested for a price target of Rs. 156. This is a straight downside of 50% from the LTP of Rs. 300/ share.

The comment by the brokerage says the split between grey and green business will get better valuation for renewable energy business, but higher multiple to RE platform makes sense after overall bidding picks up.

 

Disclaimer:

The stocks listed are given out by the various research houses. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

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