Top 15 small and midcap stocks from Angel One with a time horizon of 1 year

Ashok Leyland (ALL) is one of the leading players in the domestic CV industry with a 32 per cent market share in the MHCV segment. The company also has a strong presence in the fast-growing LCV segment.  Angel One believes that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY. Target Price is Rs 158
 

Carborundum Universal (CUMI) is part of the Murugappa group and is a leading manufacturer of abrasives, industrial ceramics, refractories, and electro minerals in India having applications across diversified user industries. While demand from the auto sector has been robust, Angel One expects demand from metal industry pick up given increased economic activity. Target Price is Rs 1060
 

Federal Bank is one of India’s largest old generation private sector banks with total assets of Rs 1.9 lakh crore with deposits of Rs 1.56 lakh crore and a loan book of Rs 1.2 lakh crore in FY21. Restructuring book is expected to be at Rs 1,500-1,600 crore out of which Rs 1,067 crore has already been restructured. This is against earlier expectations of total restructuring of Rs 3,000-3,500 crore. Target Price is Rs 110
 

GNA Axles is one of the leading suppliers of rear axles to the Auto industry. GNA is expected to be one of the biggest beneficiaries of a strong growth outlook for truck sales in US and Europe markets which are witnessing strong recovery in demand. Target Price is Rs 1,233.
 

Shriram City Union Finance is part of the Shriram group and is in the high margin business of lending to small businesses which account for 57.3 per cent of the loan book as of end FY20. Angel One is positive on the company as we believe that the worst is over in terms of asset quality which along with positive growth momentum should lead to a rerating for the company. Target Price is Rs 3,002
 

Suprajit Engineering (SEL) is the largest supplier of automotive cables to the domestic OEMS with presence across both 2Ws and PVs. Angel One believes SEL is prime beneficiary of ramp-up in production by OEMs across the globe and is well insulated from threat of EV (is developing new products). Its premium valuations are justified in our opinion owing to strong outlook and top-grade quality of earnings. Target Price is Rs 390
 

Stove Kraft (SKL) is engaged in the business of manufacturing & selling Kitchen & Home appliances products like pressure cookers, LPG stoves, non-stick cookware etc. under the brand name Pigeon and Gilma. Going forward, Angel One expects SKL to report healthy top-line & bottomline growth on the back of new product launches, strong brand name and wide distribution network. Target Price is Rs 1,288
 

AU Small Finance Bank is one of the leading small finance banks with an AUM of Rs 34,688 crore at the end of Q1FY22. Given stable asset quality, we expect loan growth to pick up in Q2FY22 which should lead to a rerating for the bank. Angel One is positive on AU Small Finance Bank. Target Price is Rs 1,520.
 

Safari Industries (India) (SIIL) is amongst the leading luggage players with a market share of 18% market share in the organized sector. Going forward, Angel One expects SIIL to report strong topline and bottomline growth on the back of strong growth in the organised sector, wide distribution network, strong brand and promoter initiatives. Target Price is Rs 979.
 

Sona BLW supplies EV differential assemblies and gears, BSG systems and EV traction motors to global customers. Given the traction in the BEV/Hybrid Vehicle space, Angel One believes that Sona Comstar will continue to command higher multiple which is justified by 47 per cent earnings CAGR over FY21-24E. Target Price is Rs 719
 

PI Industries has been increasing its share of high margin CSM business driven by strong relationships with global agrochemical players. PI Industries has announced that they will be acquiring the API business of Indswift labs for a consideration of Rs 1,500 crore. Target Price is Rs 3,950
 

Amber Enterprises India (Amber) would outperform the industry due to its dominant position in Room AC contract manufacturer, increase in the share of business in existing customers and new client additions. Going forward, Angel One expects healthy profitability on back of foray into the Commercial AC segment, entry into export markets, participation in the PLI scheme. Target Price is Rs 3,943
 

Sobha Limited operates in Residential & Commercial real-estate along with Contractual business. Customers are now having preference towards the branded players like Sobha Developers Company expected to launch 17 new projects/phase spread over 12.56mn sqft across various geographies. Majority of launches will be coming from existing land banks. Target Price is Rs 870
 

Lemon Tree Hotels reported a 55.7% QoQ degrowth in revenues for Q1FY22 to Rs 42.2 crore due to sharp drop in occupancy levels to 29.6% from 55.8% in Q4FY21 while ARR declined by 1% QoQ. Angel One expects occupancy levels to revert to Q4FY21 levels in the current quarter and improve further in 2HFY22 thus driving revenue and profitability back to pre-Covid levels in FY23.  Target Price is Rs 54
 

Whirlpool of India’s product portfolios presence in the lower penetration category, which would lead to higher growth. Going forward, Angel One expects healthy profitability on the back of a strong brand, wide distribution network, capacity expansion and strengthening product portfolio. Target Price is Rs 2,760