5 Stocks Showing Upside Potential, Top Broking Houses Recommends Buy For High Returns

Leading broking firms picked 5 quality stocks across the sector with a "Buy" call for robust gains. These stocks are Tarsons Products, Info Edge (India), Apollo Hospitals, Emmbi Industries, and Nestle India. Below are the key highlights of the stocks:

1. Tarsons Products - Buy for a Target Price of Rs 795/share

Nuvama has placed a "Buy" on Tarsons Products with a target price of Rs 795/share, implying a 29% upside from the current level. The stock is currently trading at Rs 617/share. It has given 1.72% negative return in 1 week, 11.64% in 1 month, 12.18% in 3 months and 6.36% in 1 year, respectively.

Nuvama said, "We remain positive on TARSONS given its healthy competitive position in the domestic market, expected revenue from upcoming facilities, and its huge export potential. Due to a temporary slowdown in the life sciences industry, we have cut our earnings estimates and revised the TP to INR795."

 

2. Info Edge (India) - Buy for a Target Price of Rs 4,201/share

Geojit has recommended "Buy" on Info Edge (India) with a target price of Rs 4,201/share, implying a 19% upside from the current level. The stock is currently trading at Rs 3,555.60/share. It declined 3.8% in 1 month, 8.96% in 3 months and 20.52% in 1 year, respectively. It gained 24.31% in 3 years, and 200.63% in 5 years, respectively.

Geojit said, "Hiring in the IT sector is expected to pick up, driven by high attrition and a robust pipeline. Strong non-IT sector hiring, healthy demand in home sales, demand revival in the Study abroad business, and the management's continued efforts in cost optimisation should boost future performance. Hence, we reiterate our BUY rating with a rolled forward target price of Rs. 4,201 based on SOTP valuation."

 

3. Apollo Hospitals Enterprise - Buy for a Target Price of Rs 5,400/share

Prabhudas Lilladher rated "Buy" Apollo Hospitals with a target price of Rs 5,400/share. It sees an upside of 18% upside from its current level with the given target price. The stock is currently trading at Rs 4600/share. It gained 7.6% in 1 week, and 7.19% in 1 month, respectively. It gained 3.76% in 1 year, 155.08% in 3 years, and 279.22% in 5 years, respectively.

Prabhudas Lilladher said, "We maintain our 'BUY' rating with unchanged TP of Rs5,400/share as we roll forward to FY25. We ascribe 22x EV/EBITDA multiple to hospital segment, 20x EV/EBITDA to offline pharmacy and to AHLL and assign zero value to the 24/7 business."

 

4. Emmbi Industries - Buy for a Target Price of Rs 102/share

KR Choksey assigned a "Buy" on Emmbi Industries with a target price of Rs 102/share, implying a potential upside of 13% from its current level. The stock is currently trading at Rs 90.60/share. It has fallen 2.69% in 1 week, 7.12% in 1 month, 8.07% in 1 year, 8.21% in 3 years, and 54.72% in 5 years, respectively.

KR Choksey said, "After factoring in muted Q3FY23 results, we have toned down our FY23E/FY24E estimates to reflect the effect of the slowdown. At CMP of INR 88 shares of the company are trading at a P/E of 17.6x/6.48x its revised FY23E/FY24E EPS. We now value the stock at a target P/E multiple of 7.5x on its FY24E revised EPS of INR 13.6/share (earlier INR 15.4/share), which yields a target price of INR 102 (earlier INR 116) giving an upside potential of 15.7% from the CMP. Accordingly, we maintain our 'BUY' rating on the shares of Emmbi Industries."

 

5. Nestle India - Buy for a Target Price of Rs 22,860/share

BoB Capital has a "Buy" on Nestle India with a target price of Rs 22,860/share, implying an upside of 22% from its current level. The stock is currently trading at Rs 18,859/share. It has fallen 1.56% in 1 week, 2.16% in 1 month, and 4.94% in 3 months, respectively. It gained 3.75% in 1 year, 13.58% in 3 years, and 147.25% in 5 years, respectively.

BoB Capital said, "NEST's strategy of penetration-led volume growth is yielding results. We expect the company to sustain its growth momentum underpinned by continued investments in innovation and premiumisation, expansion of its direct reach with a focus on rural markets, and forays into newer categories. The stock is trading at 65.8x/57.5x CY23E/CY24E EPS. We assume coverage with BUY and value the stock at 67x CY24E EPS, translating to a TP of Rs 22,860."

 

Stocks - Overview

Stocks	*CMP	Target Price	Upside (In %)	Market Cap
Tarsons Products	Rs 617	Rs 795	29	Small Cap
Info Edge (India)	Rs 3,555.60	Rs 4,201	19	Midcap
Apollo Hospitals	Rs 4600	Rs 5,400	18	Large cap
Emmbi Industries	Rs 102	Rs 102	13	Small Cap
Nestle India	Rs 18,859	Rs 22,860	22	Large cap

 *CMP - Current Market Price

Disclaimer

The stocks have been picked from the brokerage reports. 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 consult with certified experts before making any investment decision.