5 hot stocks you can make money from
As the frontline indices are trading in a specific range, stock-specific moves are back in action. We have compiled 5 stocks that you must look at for making money in next 12-14 months.
Finolex Cables: Edelweiss Securities has a ‘BUY/SO’ rating on the stock with a target price of Rs 800. It estimates Finolex to post 17 per cent to 15 per cent revenue/earnings CAGR over FY17-20 on robust outlook for communication cables and rising demand for consumer electricals. At current market price, the stock trades at 26x/22x FY19/20E EPS.
HSIL: Angel Broking has initiated coverage on HSIL with a Buy recommendation and target price of Rs 510, indicating an upside of ~18 per cent from the current levels. Considering the various initiatives taken by the government like smart cities, housing for all by 2022, Swachh Bharat Abhiyan and push towards providing sanitation, it would create new demand avenues for the sanitaryware segment. Further, the company has entered into new segments like consumer, pipes and caps and closures which will drive the further growth.
Capital First: Motilal Oswal Securities has a buy rating on Capital First with a target price of Rs 960. The proposed merger of IDFC Bank with Capital First is likely to fructify by mid-FY19, creating a financial services entity with total assets of Rs 1.5 lakh crore. We believe the merged entity is well-capitalised to sustain such strong growth.
HeidelbergCement India (HCIL): Reliance Securities maintained its fundamental BUY recommendation on the stock with a target price of Rs 205. The stock is expected to hit a sweet spot to improve its financials in ensuing years, on the back of healthy demand outlook owing to favourable monsoon, likely uptick in government spending in UP & MP and resolution of sand mining issues.
Petronet LNG: Sharekhan has a buy rating on the stock with unchanged target price of Rs. 320. The brokerage remains confident on earnings visibility for Petronet, given the rising share of contracted volume in the overall volume mix. Given their expectations of strong earnings CAGR of 18 per cent over FY2017-FY2020E and a resilient return on equity (RoE) of 22-24 per cent, it believes the stock is trading at an attractive valuation of 15.5x FY2019E EPS and 12.3x FY2020E EPS. Thus, we maintain our Buy rating on the stock.